How One Business Avoided Penalties Last Minute

A Montreal service business fell behind on its GST/QST filings during a period of rapid growth. With deadlines missed, returns unfiled, and several warning letters already issued by Revenu Québec, the owner feared mounting penalties and interest. The situation seemed irreversible until a precise, last-minute intervention prevented penalties and restored compliance.

This case study shows how the business avoided thousands in charges by acting quickly and strategically.

The Situation: Several Returns Overdue

The business had:
• three unfiled GST/QST periods
• incomplete bookkeeping
• missing invoices
• no reconciliation of bank deposits
• inconsistent income categorization
• personal and business transactions mixed

Revenu Québec had already:
• issued late-filing notices
• warned of estimated assessments
• flagged the account for possible compliance review

The owner was worried about penalties, interest, and an audit.

Why the Filings Were Delayed

Common problems contributed to the delays:
• bookkeeping had fallen behind
• digital receipts were not downloaded
• subcontractor invoices lacked GST/QST numbers
• POS totals did not match accounting entries
• no organized documentation for ITCs/ITRs
• tax codes in the accounting system were incorrect

When the business finally attempted to file, nothing reconciled.

How Mackisen Resolved the Crisis

Step 1 — Rapid Bookkeeping Cleanup

The Mackisen team worked intensively to:
• download missing invoices
• categorize every transaction
• rebuild accurate sales and expense records
• reconcile all bank accounts
• correct duplicated or missing entries

Clean records were ready within days.

Step 2 — Preparing Accurate GST/QST Returns

Each period required:
• recalculated tax on sales
• rebuilt ITC/ITR schedules
• detailed documentation backup
• reconciliation of deposits to invoices

The corrected returns were accurate and audit ready.

Step 3 — Filing All Periods Before Penalty Trigger

Mackisen filed all overdue returns before Revenu Québec issued estimated assessments.
This is key — once estimates are issued, penalties are extremely difficult to remove.

Step 4 — Communicating Directly with Revenu Québec

The CPA team contacted Revenu Québec to:
• explain the situation
• confirm that filings were submitted
• prevent escalation
• ensure no penalties were applied
• request removal of internal risk flags

This kept the account stable.

Step 5 — Setting Up a System to Prevent Future Delays

Mackisen reconfigured:
• GST/QST tax codes
• accounting software automations
• monthly reconciliation procedures
• cloud receipt management
• calendar reminders for future filings

The business became compliant and future-proof.

The Outcome

The business:
• avoided all late-filing penalties
• avoided interest charges on estimated assessments
• preserved all ITCs/ITRs
• restored full compliance
• stabilized its Revenu Québec account
• gained reliable monthly bookkeeping processes

A situation that could have cost thousands was resolved with zero penalties.

Key Lessons

• Filing before estimated assessments is critical
• Late filings are recoverable if acted on quickly
• Documentation determines refund speed and audit risk
• Clean bookkeeping prevents penalties and compliance issues
• Professional communication with Revenu Québec makes a major difference

Real Client Feedback

“I thought I was done. Mackisen cleaned everything in less than a week and filed all my returns. No penalties, no interest unbelievable.”

Common Questions

Will Revenu Québec always waive penalties?
No but early, proactive action drastically increases the chances.

What if I lost some receipts?
CPAs can often obtain duplicates or alternate documentation.

Can multiple overdue periods be filed at once?
Yes with proper reconstruction.

Does filing late increase audit risk?
It can, unless filings are clean and supported by documentation.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal specializes in urgent GST/QST compliance recoveries. Whether you’re months or years behind, we fix the problem quickly, prevent penalties, and restore peace of mind.