CRA GST/HST Refund Integrity Audit — Montreal CPA Firm Near You: Rapid Proof of Refund Eligibility

A CRA GST/HST Refund Integrity Audit occurs when the Canada Revenue Agency temporarily holds or freezes your refund to verify its legitimacy. This is the most common type of GST/HST audit for businesses in construction, transportation, retail, importing/exporting, real estate, and high-refund industries.
Mackisen CPA Montreal specializes in preparing full refund-defense packages that meet CRA’s strict documentation standards — ensuring your refund is released fast, without penalties or reassessments.

Unlike a full compliance audit, a refund integrity audit is entirely documentation-driven. CRA is not evaluating your business model — it is evaluating your paperwork.

Legal Foundation

Excise Tax Act s.169 — defines strict documentation rules for Input Tax Credits (ITCs).
Excise Tax Act s.231.1 — CRA’s authority to request invoices, bank proof, and contracts.
Excise Tax Act s.299 — allows CRA to verify refund entitlement before releasing funds.
Jurisprudence: Northwest Company Inc. (2011 TCC) — ITCs can be denied even when tax was paid if invoices lack legally required elements.

Learning insight: CRA does not release refunds based on trust — only on proof. We build the proof.

Why CRA Freezes Refunds

CRA’s automated refund-risk software triggers audits when it detects anomalies such as:
• unusually large ITC claims
• repeated refund periods
• ITCs claimed from high-risk or unregistered suppliers
• invoices missing GST/HST registration numbers
• personal or mixed-use expenses claimed as business
• refund requests inconsistent with your income-tax filings
• new businesses with early high refund claims

Learning insight: CRA flags patterns — your CPA must explain them with documentation.

CRA Refund Integrity Audit Process

1. CRA sends a refund-hold notice and requests supporting documentation.

2. CRA requests invoices, contracts, bank proof, GL entries, and supplier lists.

3. CRA validates each ITC by confirming:
   • taxable supply
   • proof of payment
   • supplier registration
   • business purpose

4. CRA may expand review to subcontractors or large vendors.

5. CRA releases the refund, denies credits, or requests a second round of documents.

Learning insight: Your first response determines the length and pain of the audit. A CPA-prepared file ends it early.

Mackisen CPA’s Refund Audit Defense Strategy

• validate every supplier invoice according to ETA s.169 documentation rules
• verify GST/HST/QST registration numbers for all suppliers
• match invoices to payment proof (bank, credit card, e-transfer)
• rebuild missing invoice data through supplier confirmation
• organize a CPA-certified refund binder that CRA can review quickly
• respond professionally to CRA’s questions to avoid misinterpretation
• file formal objections when CRA denies credits without basis

Learning insight: Refund audits are won by structure, not speed. The structure is what we provide.

Common Refund Audit Issues

• ITCs claimed on incomplete or invalid invoices
• unregistered subcontractors issuing GST-inclusive bills
• unpaid invoices incorrectly claimed as ITCs
• zero-rated exports not supported by customs or shipping proof
• import transactions missing GST self-assessment evidence
• credit notes not reconciled to the refund claim
• subcontractor fraud or ghost invoicing in construction

Learning insight: Most refund denials are preventable. The “problem” is paperwork — and paperwork can be fixed.

Real-World Results

• A construction company recovered $318,000 in frozen refunds after we rebuilt proper invoice trails and validated subcontractor GST numbers.
• A logistics company received a full refund release in 12 days after we prepared a CPA-standard audit binder with payment mapping.
• An e-commerce importer avoided a $71,000 reassessment when we produced missing import documentation and corrected self-assessment entries.

Learning insight: CRA releases refunds when your file looks more organized than their audit template.

SEO Optimization and Educational Value

Primary keywords: CRA GST/HST refund audit, refund integrity audit, Mackisen CPA Montreal, CPA firm near you, GST refund frozen, prove ITC eligibility
Secondary keywords: CRA supplier verification, GST refund hold Canada, QST refund audit, CRA documentation request, GST/HST claim denied

Learning insight: Both SEO and CRA value clarity — documentation that is complete, transparent, and authoritative.

Why Mackisen CPA Montreal

Mackisen CPA Montreal brings 35+ years of GST/HST and QST audit defense experience. We know CRA’s refund-check system, the documentation they expect, and the formats that lead to immediate approval. Our bilingual CPAs ensure your file is clean, consistent, and compliant with every technical requirement.

Learning insight: Refund holds are not business failures — they are documentation challenges. Mackisen CPA solves documentation challenges better than anyone.

Call to Action

If CRA or Revenu Québec has placed your refund on hold or requested ITC documentation, speed and structure matter.
Contact Mackisen CPA Montreal immediately for a complete refund integrity audit defense.
Phone: 514-276-0808 | Email: info@mackisen.com | Website: mackisen.com

Learning conclusion: A CRA GST/HST Refund Integrity Audit tests your documentation — not your integrity. Mackisen CPA Montreal ensures your documents meet CRA standards, your refund is released, and your business cash flow is protected.