CRA GST/HST Roofing Repair (Small Jobs), Shingle Patch & Leak Stop Audit — Montreal CPA Firm Near You: Defending Taxable Labour, Material Costs, Emergency Repairs, Subcontractors & ITCs

A CRA GST/HST Roofing Small-Repair Audit targets:

• small-job roofing repair crews
• shingle-patch and replacement technicians
• leak stop & emergency roof repair teams
• flashing repair specialists
• minor soffit/fascia patch work
• storm-damage spot repairs
• subcontract ladder/roof helpers
• mobile roofing technicians handling quick repairs

This is a high-risk CRA category because roofing repairs—even tiny ones—are 100% taxable, involve dangerous-goods equipment, rely heavily on subcontract helpers, and often operate through fast cash/e-transfer transactions. CRA aggressively audits when supply purchases exceed reported revenue or when emergency calls are not invoiced properly.

Mackisen CPA Montreal specializes in protecting roofing repair contractors through GST/HST correction, subcontractor validation, and complete ITC reconstruction.

Legal Foundation

Excise Tax Act

• s.165 — ALL roof-repair, patching, shingle replacement & leak control labour is fully taxable

• s.221 — GST/HST must be collected

• s.169 — ITCs require proper receipts + proof of payment

• s.141.01 — allocation rules for mixed-use tools & equipment

• Schedule IX — GST/HST rate based on location of the property repaired

• s.123(1) — defines “repair,” “installation,” “real property service”

CRA & Case Law

• Roof repair ≠ exempt — always taxable

• Patch repair = taxable

• Emergency storm repair = taxable

• Royal Bank v. Canada — incomplete invoices invalidate ITCs

• Northwest Company Inc. — supplier invoices must meet regulatory requirements

• CGI v. Canada — location determines GST/HST rate

Learning insight: There is no exemption for small roofing jobs—whether it’s 2 shingles or a 2-hour leak repair, it is taxable.

Why CRA Audits Roofing Small-Repair Contractors

Revenue Risks

• GST/HST not charged on emergency leak repairs
• cash/e-transfer repair jobs underreported
• small shingle-patch jobs not invoiced
• disposal fees missing GST
• fascia/soffit repairs misclassified
• travel & ladder fees not taxed
• deposits for storm-repair visits omitted
• after-hours surcharges not invoiced
• QC/ON/Atlantic border-town repairs misrated

Subcontractor Risks

• roofing helpers not registered for GST
• ground support crews paid cash
• invalid GST numbers
• T4A exposure for misclassified workers
• subcontract invoices missing legal details

ITC Risks

• missing receipts for:
– shingles, tar, nails
– flashing, caulking
– roof cement & membrane repair kits
– ladders, harnesses, safety PPE
– fuel & truck expenses
• imported roofing tools without GST self-assessment
• personal gear claimed as business
• missing rental documentation for roof-equipment

Operational Risks

• no job logs for small repairs
• storm-repair calls not tracked
• WhatsApp/SMS bookings not invoiced
• supply usage inconsistent with job count
• inconsistent time logs for emergency visits
• leaks repaired without documentation

High-risk operators:

• shingle-patch contractors

• emergency roofing teams

• ladder crew subcontractors

• storm-damage roof repair workers

• handyman-roofers

Learning insight: CRA targets small-job roofers who rely heavily on e-transfers, handwritten invoices and same-day repairs.

CRA Roofing Small-Jobs Audit Process

1. CRA requests:
   – invoices (patches, leak stops, shingle replacement, travel, disposal)
   – subcontractor invoices + GST numbers
   – job logs (addresses, hours, repair type)
   – material receipts (shingles, tar, membrane patches)
   – ladder/roof equipment receipts
   – bank & e-transfer statements
   – ITC spreadsheets
   – T5018 subcontractor summaries
   – import documents for roofing tools

2. CRA tests:
   • GST/HST charged on ALL repairs
   • subcontractor compliance
   • ITC eligibility and completeness
   • logs → invoices → deposits → GST returns reconciliation
   • imported-tool self-assessment
   • rate accuracy for out-of-province repairs
   • consistency of supply usage with reported revenue

3. CRA issues a Proposed Audit Adjustment.

4. Mackisen CPA prepares a complete legal + documentary rebuttal.

Learning insight: CRA reconstructs your repair activity using supplier receipts, photo logs, e-transfer patterns & storm-season volume.

Mackisen CPA’s Roofing-Repair Audit Defense Strategy

• create a Roof Repair Tax Matrix (patch, leak stop, flashing fix, disposal, travel)
• rebuild GST/HST-compliant invoices
• validate subcontractor GST registration + worker classification
• reconstruct ITC binder (materials, tools, PPE, vehicle)
• reconcile logs → invoices → deposits → GST filings
• correct GST rate for QC/ON/Atlantic repairs
• rebuild imported-tool self-assessments
• prepare CPA-certified CRA audit binder
• negotiate reduction of penalties & interest

Learning insight: Roofing-repair audits are won with address-by-address job logs, subcontractor validation & accurate materials evidence.

Common CRA Findings in Roofing Small-Repair Audits

• GST/HST not charged on repair labour
• disposal fees unreported
• subcontractor invoices invalid or missing
• ITCs denied due to missing receipts
• imported tools missing GST
• bank deposits > reported revenue
• emergency-repair calls unrecorded
• shingle usage inconsistent with declared jobs

Learning insight: CRA’s biggest reassessments come from deposit underreporting, missing GST on small jobs & weak subcontractor documentation.

Real-World Results

• A small-job roofing team avoided a $194,000 reassessment after Mackisen CPA rebuilt emergency-repair logs and subcontract records.
• A shingle-patch contractor reversed a $118,000 ITC denial with full materials + tool receipts.
• A leak-stop technician eliminated penalties by correcting GST/HST on disposal and travel fees.
• A storm-repair contractor cleared CRA findings through deposit → invoice → job-log reconciliation.

Learning insight: Organized job evidence outperforms CRA assumptions every time.

SEO Optimization & Educational Value

Primary keywords: GST/HST roofing repair audit, CRA shingle patch audit, taxable roof repair services Canada, Mackisen CPA Montreal
Secondary keywords: leak stop GST rules, roofing ITC denial, subcontract roofer audit, small-job roof repair GST/HST

Learning insight: Roofing small-job content achieves strong SEO due to high contractor volume and extreme audit frequency.

Why Mackisen CPA Montreal

With 35+ years defending roofing contractors, patch specialists & emergency-repair crews, Mackisen CPA Montreal is Québec’s #1 authority in GST/HST roofing-sector audits.
We understand storm-season patterns, subcontractor behaviour, equipment ITCs & CRA audit methodology deeply.

Learning insight: Roofing-repair audits require methodical logs, subcontractor compliance & ITC discipline—all strengths of Mackisen CPA.

Call to Action

If CRA is auditing your roof-repair, shingle-patch, leak-stop, or roof-maintenance service, contact Mackisen CPA Montreal immediately:

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

Learning Conclusion:

A CRA GST/HST Roofing-Repair Audit tests taxable labour, material evidence, subcontractor GST compliance, ITC documentation & revenue reconciliation.
Mackisen CPA Montreal provides complete audit protection