Facing a Revenu Québec Audit Notice? 7 Immediate Steps to Take

Receiving an audit notice from Revenu Québec is one of the most stressful moments for any business owner. Whether you’re a freelancer, retailer, contractor, startup, or corporation, an audit can feel intimidating especially if your bookkeeping isn’t perfectly organized. But the situation is manageable. What you do in the first 48 hours can determine whether the audit ends smoothly or becomes a costly, drawn-out process.

This guide explains the 7 critical actions to take immediately after receiving a Revenu Québec GST/QST audit notice.

Step 1 — Don’t Ignore the Letter — Read It Carefully

The notice specifies:
• the periods under review
• what tax (QST, GST, Income Tax, or all) is being audited
• the documents required
• deadlines
• the auditor’s contact information

Many audits escalate simply because business owners fail to read the letter in full.

Step 2 — Do NOT Contact the Auditor Yourself

This is one of the most important rules.

Audit communication should always be handled by a CPA, because:
• auditors ask targeted questions designed to reveal inconsistencies
• business owners often overshare or guess answers
• misunderstandings create red flags
• everything you say becomes part of the audit record

A CPA controls the flow of information and protects your position.

Step 3 — Assemble ALL Relevant Documents Immediately

Revenu Québec typically asks for:
• bank statements
• sales reports
• GST/QST returns
• invoices and receipts
• proof of payment
• contracts and agreements
• expense listings
• ITC/ITR schedules
• POS or e-commerce reports (Shopify, Square, Stripe, etc.)

Gathering these early prevents delays.

Step 4 — Identify Risk Areas Before the Auditor Does

A CPA will review your books to flag:
• missing documentation
• mixed personal/business expenses
• tax coding errors
• inconsistent deposit amounts
• incorrect GST/QST calculations
• duplicated or missing expenses
• incorrectly recorded zero-rated/exempt sales

Knowing your weaknesses allows your CPA to prepare explanations and corrections proactively.

Step 5 — Reconstruct and Correct Your Records

If problems exist, they must be fixed before they are presented to the auditor.

Corrections may include:
• rebuilding missing invoices
• reconstructing bookkeeping
• correcting GST/QST coding
• reconciling revenue to deposits
• recalculating ITCs and ITRs
• creating proper documentation folders

The stronger your paperwork, the smoother the audit.

Step 6 — Allow Your CPA to Communicate and Negotiate

Your CPA will:
• respond to the auditor
• explain discrepancies
• provide documentation gradually and strategically
• challenge incorrect assumptions
• negotiate the scope of the audit
• ensure the auditor follows procedural fairness

Professional communication drastically improves outcomes.

Step 7 — Stay Calm — Most Audits Are Fixable

Even when errors exist, most GST/QST audits end with:
• reduced adjustments
• no penalties
• manageable corrections
• full acceptance of explanations

A CPA’s involvement can prevent worst-case scenarios like:
• negligence penalties
• aggressive reassessment
• expansion of the audit to more years
• referral to CRA or collections

Audits are stressful, but they are solvable.

Key Lessons

• Early action prevents escalation
• Never speak directly to auditors
• Documentation is your defence
• Cleanup and reconstruction can fix years of errors
• CPA-led communication always produces better results

Real Client Stories

A consultant received an audit notice after years of DIY bookkeeping. Mackisen reconstructed three years of records, and the auditor closed the file with minimal adjustments.

A retailer had deposit mismatches and missing POS reports. Mackisen corrected everything and prevented penalties.

A contractor faced a negligence penalty. Mackisen challenged the auditor’s assumptions and had the penalty removed.

Common Questions

Why was I selected for an audit?
Often due to mismatches in filings, refund patterns, or industry risk.

Can I avoid penalties if errors exist?
Yes with proper explanation and documentation.

How long do audits last?
Anywhere from 1 week to several months depending on complexity.

Will the audit expand to other years?
It can unless issues are resolved clearly and professionally.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal specializes in GST/QST audit defence. We manage everything documentation, communication, negotiation, and compliance correction so you remain protected and confident throughout the process.