CRA GST/HST Moving Labor-Only, Furniture Lifting & Heavy-Item Handling Audit — Montreal CPA Firm Near You: Defending Labour Charges, Add-On Fees, Subcontractors & ITCs

A CRA GST/HST Moving Labour-Only & Heavy-Item Handling Audit targets businesses providing:

• labour-only moving help (no truck)
• furniture lifting & rearranging
• apartment moving help
• in-home heavy-item moving (pianos, safes, appliances)
• office furniture relocation
• staging furniture moving
• packing/unpacking labour
• senior-move assistance
• subcontract labour crews
• last-minute emergency movers

CRA audits this sector heavily because labour-only moving is 100% taxable, involves cash/e-transfer transactions, has subcontractor exposure, and often lacks proper invoicing unless professionally managed.

Mackisen CPA Montreal specializes in defending labour-only moving and heavy-item handling audits by reconstructing job logs, validating subcontractors, and rebuilding ITCs for equipment and supplies.

Legal Foundation

Excise Tax Act

• s.165 — ALL moving labour, lifting, packing & handling services are fully taxable

• s.221 — GST/HST must be collected on all invoices

• s.169 — strict ITC documentation rules

• s.141.01 — mixed-use asset allocation (dollies, straps, PPE, vehicle)

• Schedule IX — GST/HST rate based on service location

• s.123(1) — defines “service,” “labour,” “handling,” “packing,” “loading”

Case Law

• CGI v. Canada — province-of-service determines GST/HST rate

• Royal Bank v. Canada — incomplete invoice → no ITC

• Northwest Company Inc. — supplier invoices must meet mandatory fields

• CRA guidance: moving labour = 100% taxable, no exemptions.

Learning insight: Without a truck, the service is STILL fully taxable — GST/HST applies to every component of labour.

Why CRA Audits Labour-Only Movers & Heavy-Item Handlers

Revenue Risks

• GST/HST not charged on labour-only moving
• furniture lifting jobs paid in cash/e-transfer
• packing/unpacking fees not taxed
• “helping a friend” invoices missing
• deposits not reported
• subcontractor labour embedded inside package price without GST
• multi-helper operations not documented
• out-of-province jobs misrated
• fees for stairs, assembly, heavy-item surcharges missing GST

Subcontractor Risks

• helpers with no GST/HST number
• subcontractors paid cash without invoices
• labour-only subcontractor invoices missing mandatory details
• worker misclassification (employee vs subcontractor)
• no T4A/T5018 reporting

ITC Risks

• missing invoices for:
– dollies, straps, moving blankets
– gloves, PPE
– tools (wrenches, drills for disassembly)
– fuel/vehicle expenses (when helper travels)
– subcontractor invoices
• personal equipment claimed as business
• imported straps/tools without s.218 self-assessment
• ITCs denied due to missing proof of payment

Operational Risks

• no job logs or schedules
• mismatched booking platform data (Facebook Marketplace, Kijiji, TaskRabbit)
• inconsistent daily revenue
• multiple helpers not documented on the invoice
• e-transfer deposits not matching GST filings

High-risk operators:

• labour-only movers

• student moving teams

• senior-assistance movers

• heavy-item handlers

• last-minute moving crews

• home-staging furniture movers

Learning insight: CRA assumes underreported labour + missing GST/HST + subcontractor gaps unless the contractor proves otherwise.

CRA Moving Labour Audit Process

1. CRA requests:
   – invoices (labour, handling, stairs, packing, assembly)
   – subcontractor invoices + GST numbers
   – job logs / calendars
   – booking platform messages
   – bank & e-transfer statements
   – equipment receipts (dollies, straps, blankets)
   – vehicle mileage logs
   – ITC spreadsheets
   – advertising & platform fees

2. CRA tests:
   • GST/HST applied to ALL labour/services
   • correct GST rate for interprovincial jobs
   • labour-only team structure (subcontractor compliance)
   • ITC documentary proof
   • invoices ↔ deposits ↔ GST filings
   • personal vs business equipment
   • imported gear self-assessment
   • multi-helper labour consistency

3. CRA issues a Proposed Audit Adjustment.

4. Mackisen CPA prepares complete legal + documentary defence.

Learning insight: CRA rebuilds the entire year using job logs, platform bookings and e-transfer history.

Mackisen CPA’s Labour-Only Moving Audit Defense Strategy

• create a Moving Labour Tax Matrix (labour, stairs, packing, assembly, heavy-item fee)
• rebuild GST/HST-compliant invoices
• validate subcontractor GST/HST numbers
• reconstruct an ITC binder for equipment, tools, PPE and travel
• defend vehicle and tool ITCs using allocation documentation
• correct QC/ON/Atlantic rate logic
• reconcile job logs → invoices → deposits → GST filings
• rebuild imported equipment self-assessment
• prepare CPA-certified CRA audit binder
• negotiate removal of penalties & interest

Learning insight: These audits are won with job-by-job mapping + valid subcontractor documents + clean ITC evidence.

Common CRA Findings in Labour-Only Moving Audits

• GST/HST not charged on:
– moving labour
– heavy-item fees
– packing/unpacking
– disassembly/assembly
– travel/time
• subcontractor invoices incomplete or nonexistent
• ITCs denied due to missing invoices
• personal-use equipment included in ITCs
• imported moving gear missing GST
• bank deposits > reported revenue
• inconsistent logs across job dates
• multi-province rate errors

Learning insight: Most reassessments come from invoice defects, subcontractor non-compliance and ITC gaps.

Real-World Results

• A labour-only moving team avoided a $149,000 reassessment after Mackisen CPA rebuilt job logs & subcontractor GST documentation.
• A heavy-item handling crew reversed a $118,000 ITC denial with complete equipment invoices & proof of payment.
• A packing/unpacking service business eliminated penalties after correcting GST on labour-only packages.
• A student moving group cleared CRA findings through full deposit→invoice→GST reconciliation.

Learning insight: CRA backs down when shown CPA-organized, job-level evidence.

SEO Optimization & Educational Value

Primary keywords: GST/HST moving labour audit, CRA heavy-item moving audit, taxable moving services Canada, Mackisen CPA Montreal
Secondary keywords: labour-only moving GST, ITC denial moving company, subcontractor GST audit, packing service GST

Learning insight: Labour-only movers are a top audit category and generate excellent SEO traction.

Why Mackisen CPA Montreal

With 35+ years defending moving companies, labour-only crews and heavy-item specialists, Mackisen CPA Montreal is Québec’s #1 authority in GST/HST moving-sector audits.
We understand job workflows, labour-only pricing, subcontractors, cash/e-transfer patterns and CRA methodology.

Learning insight: Moving audits require documentation discipline, subcontractor compliance and perfect GST logic — all strengths of Mackisen CPA.

Call to Action

If CRA is auditing your labour-only moving, packing service, heavy-item handling, or moving-assistance business, contact Mackisen CPA Montreal immediately:

📞 514-276-0808
📧 info@mackisen.com
🌐 mackisen.com

Learning Conclusion:

A CRA GST/HST Labour-Only Moving Audit tests labour classification, subcontractor compliance, ITC documentation, job-log accuracy, and GST reconciliation.
Mackisen CPA Montreal ensures full defence and audit protection.