CRA Limited-Scope Audit — Montreal CPA Firm Near You: Targeted and Time-Sensitive Defense

A CRA Limited-Scope Audit, also known as a Targeted Audit, is a focused review of one or two areas of your tax return — typically deductions, expenses, or refund claims. While less invasive than a full audit, a limited-scope audit can easily expand if inconsistencies are found.
Mackisen CPA Montreal ensures your response is precise, professional, and fully supported by CPA-certified documentation — closing the audit quickly and preventing escalation.

Legal Foundation

Law: Income Tax Act s.231.1–231.2 (CRA’s power to request and inspect records); Excise Tax Act s.289 (verification authority).
Jurisprudence: Canderel Ltd. v. Canada (1998 SCC) — income and deductions must reflect true commercial reality and be supported by proper documentation.

Learning insight: CRA’s limited audits are about focus — not forgiveness. Mackisen CPA keeps that focus narrow and your exposure minimal.

Why CRA Conducts Limited-Scope Audits

Limited-scope audits are triggered by automated data-matching tools that detect unusual or high-risk items on returns.
Common triggers include:

• High vehicle, home-office, or meal deductions.

• Frequent or large GST/HST refund claims.

• Unusual shareholder loan activity or management fees.

• Rental or business losses reported for multiple years.

• Mismatches between your returns and CRA’s T-slip or banking data.

Learning insight: CRA doesn’t target profit — it targets patterns. Mackisen CPA explains the legitimate reasons behind yours.

CRA’s Limited-Scope Audit Process

1. Audit Letter: CRA specifies which tax items or years are under review.

2. Document Request: CRA asks for invoices, receipts, contracts, and proof of payment.

3. Review Phase: CRA evaluates your documents for reasonableness and compliance.

4. Follow-Up Questions: CRA may seek clarification or additional documentation.

5. Audit Decision: CRA either confirms compliance or expands the audit scope.

Learning insight: Every CRA audit starts small — poor documentation makes it big. Mackisen CPA keeps it small and short.

Mackisen CPA’s Targeted Audit Defense Framework

1. Risk Identification: Pinpoint what CRA is reviewing and why it’s flagged.

2. Evidence Assembly: Gather invoices, receipts, and bank proofs tied directly to CRA’s focus.

3. CPA Certification: Reconcile and certify documents to ensure professional completeness.

4. Structured Response Package: Submit a precise, formatted binder matching CRA’s audit outline.

5. Preventive Audit Control: Implement recordkeeping standards that prevent repeat audits.

Learning insight: CRA closes files faster when documentation answers every question the first time. Mackisen CPA makes your answers bulletproof.

Common CRA Audit Adjustments

• Disallowed expenses: Vehicle, meals, or home-office deductions lacking logs.

• GST/HST refund holds: Invoices missing supplier registration numbers.

• Shareholder loan reclassification: Withdrawals treated as income.

• Ineligible losses: Hobby or rental activities deemed non-commercial.

Mackisen CPA addresses each issue directly, providing detailed evidence and legal justification under the Income Tax Act and CRA’s interpretation bulletins.

Learning insight: CRA respects precision — Mackisen CPA replaces explanations with evidence.

Real-World Case Results

• A Montréal consultant closed a vehicle-expense audit in 10 days after Mackisen CPA provided mileage logs, insurance, and travel contracts.

• A construction company had a $56,000 GST refund released when our team verified supplier compliance and documented tax-paid receipts.

• A landlord avoided reassessment when we demonstrated rental losses were due to legitimate renovations and capital investments.

Learning insight: CRA closes files faster when every page shows purpose, not excuses. Mackisen CPA ensures that precision.

SEO Optimization and Educational Value

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Secondary Keywords: CRA GST refund verification, limited audit response, Mackisen CPA audit support, CRA small business review, CRA expense validation.

Learning insight: CRA and Google both reward clarity — Mackisen CPA communicates clearly, consistently, and credibly.

Why Mackisen CPA Montreal

With 35 years of experience managing CRA and Revenu Québec audits, Mackisen CPA Montreal specializes in rapid, focused defense for limited-scope reviews. Our bilingual CPAs, auditors, and tax specialists prepare structured, compliant responses that demonstrate diligence and transparency.
We protect your time, money, and peace of mind by ensuring your file never grows beyond its limits.

Learning insight: Limited-scope audits aren’t risks — they’re reminders to stay organized. Mackisen CPA ensures you always are.

Call to Action

If CRA or Revenu Québec has sent you a Limited-Scope Audit Notice or requested documentation, act before the deadline.
Contact Mackisen CPA Montreal today for audit defense, documentation support, and CRA correspondence management.
Phone: 514-276-0808 | Email: info@mackisen.com | Website: mackisen.com

Learning conclusion: CRA Limited-Scope Audits test precision, not intention. Mackisen CPA Montreal ensures your documentation is complete, compliant, and convincing — keeping your file short, your refund safe, and your business protected.