CRA Limited-Scope Audit — Montreal CPA Firm Near You: Fast, Targeted, and Preventive Defense

A CRA Limited-Scope Audit is a focused review of one or two items on your tax return — such as a specific deduction, refund claim, credit, or financial ratio. Although these audits are narrower than full audits, they can quickly expand if your response is incomplete, inconsistent, or poorly documented.
Mackisen CPA Montreal specializes in delivering fast, accurate, CPA-certified responses that keep the audit limited, efficient, and closed without escalation.

Limited-scope audits are CRA’s way of “testing” your compliance habits. A clean file builds long-term tax credibility. A sloppy file attracts repeat audits.

Legal Foundation

Income Tax Act s.231.1 — CRA’s right to ask for documents supporting a specific line item or claim.
Income Tax Act s.152(1) — CRA’s mandate to reassess based on available information.
Excise Tax Act s.289 — focused GST/HST verification authority.
Jurisprudence: Canderel Ltd. v. Canada (1998 SCC) — requires taxpayers to support claims with verifiable documentation that reflects commercial reality.

Learning insight: CRA limited audits don’t ask “why?” — they ask “show me.” Mackisen CPA makes sure you can.

Why CRA Conducts Limited-Scope Audits

CRA’s automated systems flag returns that deviate from statistical norms. Common triggers include:

• Higher-than-average vehicle, home-office, or meal expenses

• Large or recurring GST/HST refunds

• Unusual management fees or shareholder loans

• Rental losses claimed for multiple years

• Variances between T-slips and reported income

• Prior filing errors or late filings

Learning insight: CRA algorithms detect anomalies — your CPA explains them with evidence.

CRA’s Limited-Scope Audit Process

1. CRA sends an audit letter requesting documents for a specific issue.

2. You must provide invoices, receipts, contracts, and supporting logs.

3. CRA samples a few items and checks for consistency.

4. If documentation is clean, the file closes quickly.

5. If documentation is weak, CRA expands the audit to other areas.

Learning insight: The difference between a 10-day audit and a 10-month audit is the quality of your first response.

Mackisen CPA’s Limited-Scope Audit Strategy

• Identify exactly what triggered the review (often hidden in the audit letter).

• Reconcile each audited item with invoices, payment proofs, mileage logs, or contracts.

• Prepare CPA-certified documentation in a structured, audit-ready format.

• Draft clear explanations linking receipts to business purpose.

• Submit a clean, consistent response to prevent escalation.

• Strengthen your file to avoid repeat audits in future years.

Learning insight: CRA closes files fastest when your response looks like something CRA would have prepared themselves.

Common Limited-Scope Issues We Defend

• Vehicle expenses: Missing mileage logs or mixed personal/business use

• Home-office deductions: Inadequate square-footage documentation

• GST/HST refund audits: Supplier registration missing or invalid

• Shareholder loans: Risk of reclassification as income

• Rental losses: CRA challenges “reasonable expectation of profit”

• Contractor payments: Missing T4A slips or unclear service agreements

Learning insight: CRA’s most common adjustments are technical, not intentional. Technical problems require technical CPA solutions.

Real-World Success

• A Montreal consultant passed a limited-scope audit in 8 days after we reconstructed mileage logs and linked travel to client contracts.

• A construction firm had a $52,000 GST refund released after we validated subcontractor GST numbers and reconciled payments.

• A rental-property owner avoided reassessment when we provided CPA-supported profit analysis and corrected depreciation schedules.

Learning insight: CRA closes files quickly when facts are organized — and slowly when they’re not.

SEO Optimization and Educational Value

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Secondary Keywords: GST/HST limited audit, CRA request for information, CPA audit help Montreal, CRA documentation review, targeted compliance audit

Learning insight: SEO and audit defense both reward clarity, structure, and authority. Mackisen CPA delivers all three.

Why Mackisen CPA Montreal

With over 35 years of CRA audit-defense experience, Mackisen CPA Montreal knows how to keep audits contained, compliant, and stress-free. Our bilingual CPAs understand exactly what CRA looks for — and exactly how to present documentation that satisfies auditors without exposing new risks.

Learning insight: Limited audits test your organization — Mackisen CPA ensures your organization passes with confidence.

Call to Action

If you’ve received a CRA Limited-Scope Audit letter, respond immediately — the deadline is short and the risk of escalation is high.
Contact Mackisen CPA Montreal for targeted audit defense and documentation support.
Phone: 514-276-0808 | Email: info@mackisen.com | Website: mackisen.com

Learning conclusion: A limited-scope audit is a spotlight, not a storm. Mackisen CPA Montreal ensures that what CRA sees under that spotlight is clean, compliant, and audit-proof — closing your file fast and protecting your long-term tax credibility.