CRA GST/HST Refund Integrity Audit — Montreal CPA Firm Near You: Prove Refund Entitlement

A CRA GST/HST Refund Integrity Audit occurs when the Canada Revenue Agency temporarily freezes your GST/HST refund to verify your entitlement. This is one of the most common audits for businesses that frequently claim Input Tax Credits (ITCs), especially in construction, transportation, retail, and manufacturing. Mackisen CPA Montreal prepares full refund-defense packages, ensuring your documents meet CRA standards so your refund is released quickly and without adjustments.

A refund integrity audit is not about suspicion — it is about documentation. CRA wants to confirm that every ITC claimed is tied to a real, paid business expense and that all supplier invoices meet the Excise Tax Act requirements.

Legal Foundation

Law: Excise Tax Act s.169 — sets the rules for ITC eligibility and required documentation.
Excise Tax Act s.231.1 — allows CRA to request invoices, contracts, bank statements, and ledgers.
Jurisprudence: Northwest Co. Inc. v. Canada (2011 TCC) — CRA may deny ITCs if invoices are incomplete, even when the purchase is legitimate.

Learning insight: CRA only releases refunds supported by evidence. Mackisen CPA ensures your evidence is complete, consistent, and compliant.

Why CRA Freezes GST/HST Refunds

CRA’s automated refund-risk system selects returns for integrity review based on patterns. Common triggers include:

• Refunds disproportionately large compared to sales.

• Frequent refund claims across multiple reporting periods.

• Supplier invoices missing GST/HST registration numbers.

• Claims involving cash purchases or unclear proof of payment.

• ITCs claimed on expenses unrelated to commercial activity.

Learning insight: The CRA system isn’t questioning your honesty — it’s questioning your paperwork. We make sure your paperwork passes every test.

CRA Refund Integrity Audit Process

1. Refund Hold Notice — CRA sends a letter advising that your refund is under review.

2. Record Request — CRA requests invoices, contracts, bank records, or proof of payment.

3. Supplier Verification — CRA checks whether vendors are valid GST/HST registrants.

4. Commercial Purpose Review — CRA ensures each claim relates to your taxable business.

5. Decision — CRA releases the refund, adjusts the claim, or requests additional information.

Learning insight: Refund releases are fastest when your documentation looks “audit-ready.” Mackisen CPA makes it audit-ready.

Mackisen CPA’s Refund Integrity Defense Strategy

• Review every ITC for eligibility under the Excise Tax Act.

• Validate supplier GST/HST registration numbers.

• Match invoices to bank statements, e-transfers, or credit-card payments.

• Prepare a structured refund binder with invoices, GL entries, and payment proof.

• Draft professional CPA explanations for any unusual transactions.

• Communicate with CRA auditors on your behalf until refund release.

Learning insight: CRA doesn’t accept explanations — it accepts documentation. We provide both, in the format CRA trusts.

Common Red Flags Found by CRA

• Invoices addressed to an individual instead of the corporation.

• Invoices with missing tax amounts or unclear descriptions.

• Cash payments with no receipt or paper trail.

• Duplicate ITCs claimed in more than one period.

• Unregistered subcontractors issuing tax-inclusive invoices.

Learning insight: Most refund denials stem from technical invoice issues — not tax issues. Fixing the technical issues restores the refund.

Real-World Success Stories

• A construction company recovered $310,000 in frozen refunds after Mackisen CPA rebuilt missing documentation and validated subcontractor registration.

• A transportation firm with three months of refund holds received full approval after our team matched every ITC to bank transactions and delivery contracts.

• A retail distributor avoided a $75,000 reassessment when we proved that purchase rebates caused a temporary variance in refund patterns.

Learning insight: CRA releases refunds quickly when your file is clean. Mackisen CPA cleans and organizes your file before CRA reviews it.

SEO Optimization and Educational Value

Primary Keywords: CRA GST Refund Audit, GST/HST Refund Integrity Review, Mackisen CPA Montreal, CPA Firm Near You, CRA Input Tax Credit Audit, GST/HST Refund Delay.
Secondary Keywords: GST refund proof, CRA supplier verification, QST refund audit assistance, Mackisen CPA refund support, CRA GST risk audit.

Learning insight: Authority comes from clarity — both CRA and Google reward clear, accurate documentation and explanations.

Why Mackisen CPA Montreal

With 35 years of GST/HST and QST audit experience, Mackisen CPA Montreal specializes in refund audits requiring rapid, accurate documentation. Our bilingual CPA team knows exactly what CRA expects and prepares clean, compliant, and persuasive files to accelerate refund release and protect your cash flow.

Learning insight: Refund delays strain businesses — documentation fixes them. Mackisen CPA ensures your next refund is processed, not paused.

Call to Action

If CRA or Revenu Québec has frozen your refund or requested supporting documents, respond before delays turn into reassessments.
Contact Mackisen CPA Montreal now for complete refund-audit defense.
Phone: 514-276-0808 | Email: info@mackisen.com | Website: mackisen.com

Learning conclusion: A GST/HST refund audit tests documentation, not integrity. Mackisen CPA Montreal ensures your documentation is legally compliant, professionally organized, and powerful enough to get your refund approved quickly and safely.