Dual Filing in Quebec 2025 — How to Coordinate CRA and Revenu Québec Returns

Filing taxes in Quebec is unique in Canada. Residents and corporations must file separate returns—one to CRA and another to Revenu Québec. Without careful coordination, taxpayers risk mismatched income, denied deductions, and delayed refunds. Mackisen CPA Auditors Montreal simplifies dual filing by aligning federal and provincial submissions, ensuring accuracy, compliance, and audit protection.

Legal and Regulatory Framework

Income Tax Act (Canada) Section 2(1): Mandates all residents to report worldwide income to CRA.
Taxation Act (Quebec) Section 1000: Requires Quebec residents to report identical income under provincial law.
Section 1140: Defines Quebec residency rules for personal tax liability.
Employment Insurance Act and Quebec Parental Insurance Plan: Create separate federal and provincial payroll reporting obligations.
Section 125(1) ITA and Quebec equivalent: Set small business deductions with differing thresholds and phase-out rules.
Section 220(1) ITA: Grants CRA enforcement power, mirrored by Tax Administration Act (Quebec).

Key Court Decisions

Dionne v. Quebec (2019): Revenu Québec assessments are independent from CRA’s decisions even when identical facts are used.
Beaudoin v. The Queen (2018): Reinforced taxpayer duty to maintain uniform data across both returns.
Roy v. Quebec (2020): Established that failure to reconcile differences between CRA and Revenu Québec constitutes negligence.

Why CRA and Revenu Québec Filing Differs

Each agency uses its own systems, deadlines, and forms. CRA uses T1 and T2 returns, while Quebec requires TP1 and CO-17 filings. Payroll remittances split between CPP and QPP, and GST/HST filings differ from QST submissions. Without professional integration, data mismatches can cause duplicate tax assessments. Mackisen ensures perfect synchronization.

Mackisen’s Strategy

1. Unified Financial Data — Prepare both returns from a single dataset verified for consistency.

2. Reconciliation Review — Match corporate income, capital gains, and dividends line-by-line across T2 and CO-17.

3. Credit Optimization — Claim Quebec-specific credits like Solidarity and R&D while coordinating with federal equivalents.

4. Audit Coordination — Manage both agencies to ensure consistent positions in case of dispute.

5. Payroll & Sales Tax Alignment — File CPP/QPP and GST/QST reports under one schedule to avoid duplicate remittances.

Real Client Experience

A Quebec software company filed T2 and CO-17 with differing depreciation schedules, triggering CRA and Revenu Québec reassessments. Mackisen reconciled both and eliminated a $120,000 discrepancy. A Montreal physician with misaligned RRSP deduction claims avoided double taxation after Mackisen corrected both filings.

Common Questions

Why does Quebec require separate filing? Quebec administers its own tax system under the Taxation Act.
Do CRA and Revenu Québec share data? Limited exchange exists; inconsistencies often cause audits.
Can Mackisen file both returns? Yes, our integrated system handles CRA and Revenu Québec filings together.

Why Mackisen

Mackisen CPA Auditors Montreal are Canada’s leading experts in Quebec dual tax filing. Our CPAs coordinate federal and provincial compliance, ensuring accuracy, refunds, and audit protection. Call Mackisen CPA Auditors Montreal today for your 2025 Dual Filing Consultation. The first meeting is free and ensures both filings work together, not against you.