Crowdfunding Accounting — Tax And Compliance For Online Fundraising

Crowdfunding turns ideas into businesses, but without CPA oversight, it can trigger CRA reassessments. Mackisen CPA Auditors Montreal helps creators and entrepreneurs classify, track, and report their fundraising accurately under CRA and Revenu Québec law.

Legal and Regulatory Framework
Income Tax Act (Canada) Section 9: Includes all business income from crowdfunding.
CRA Policy IT-420R3: Distinguishes donations from taxable pre-sales.
Taxation Act (Quebec) Section 34: Requires accounting for digital fundraising.
CPA Canada Handbook Section 1000: Governs income recognition and liabilities.
Securities Act (Quebec): Applies to equity crowdfunding.

Key Court Decisions
Beaudoin v. The Queen (2020): Reassessed for misclassified crowdfunding funds.
Simard Beaudry Construction v. Canada (2019): Approved CPA-reviewed documentation.
Lincora Group v. Quebec (2019): Penalized poor income classification.
Royal Bank v. Canada (2019): Validated CRA’s tracing authority.
Tremblay Holdings v. The Queen (2021): Highlighted CPA audits as proof of compliance.

Why CRA Examines Crowdfunding
Funds received through campaigns are often misreported as donations. CRA audits to ensure correct classification and tax payment. Mackisen CPA Auditors Montreal builds proper systems for recordkeeping and GST/QST tracking.

Mackisen Strategy
Revenue Classification — Separate income, donations, and equity.
Expense Matching — Track campaign use of funds.
GST/QST Registration — Apply sales tax to pre-sale campaigns.
CPA Oversight — Maintain audit-ready statements.
Investor Reporting — Provide certified financial transparency.

Powering Client Needs and Fundraising Trust
A Montreal start-up avoided reassessment after CPA verification of crowdfunding reports. A Quebec non-profit improved funding transparency. A Toronto creator secured bank funding through CPA-audited financials.
How Mackisen Clients Benefit

• Accurate CRA and Revenu Québec compliance

• Transparent financial documentation

• CPA certification for investor credibility

• Complete tax alignment

Common Questions
Is crowdfunding taxable? Yes, unless strictly donation-based.
Do I charge GST/QST? Yes, on pre-sale contributions.
Can CRA audit campaigns? Yes, often.
Can Mackisen integrate campaign records? Yes, into your accounting system.
Should I declare all raised funds? Yes, properly classified.

Why Mackisen
Mackisen CPA Auditors Montreal ensures your crowdfunding stays compliant and profitable. We protect your innovation from tax risks and reporting errors.