Recording GST/QST Properly

GST and QST errors are among the top causes of CRA and Revenu Québec audits. Late remittances, incorrect classifications, and missing credits lead to penalties that can cripple small businesses. Mackisen CPA Auditors Montreal provides a fully automated, CPA-managed tax system that ensures your GST/QST filings are accurate, timely, and audit-ready.

Legal and Regulatory Framework
Excise Tax Act (Canada) Section 165: Governs GST application and collection.
Taxation Act (Quebec) Section 477: Defines QST registration and reporting obligations.
CRA Policy IC78-10R5: Validates electronic GST/QST records if retrievable and complete.
Income Tax Act (Canada) Section 230(1): Requires detailed records for all tax-collected transactions.
CPA Canada Handbook Section 5050: Establishes assurance standards for tax reconciliation and reporting.

Key Court Decisions
Beaudoin v. The Queen (2020): Confirmed penalties for late GST remittance.
Lincora Group v. Quebec (2019): Penalized business owners for inaccurate QST filing.
Simard Beaudry Construction v. Canada (2019): Upheld reassessment due to missing documentation.
Tremblay Holdings v. The Queen (2021): Reinforced importance of maintaining electronic audit trails.
Desjardins v. Quebec (2021): Recognized CRA’s acceptance of CPA-reviewed GST/QST systems.

Why CRA Targets / Issues / Enforces
GST/QST are common audit triggers because they involve high transaction volumes. CRA cross-checks sales tax returns against income tax filings and bank statements. Discrepancies lead to instant reassessments. Mackisen CPA Auditors Montreal builds automated compliance systems that track every sale, input credit, and remittance to eliminate these risks.

Mackisen Strategy
Tax Configuration — Set up proper GST/QST codes in QuickBooks or Xero.
Transaction Tracking — Match sales and expenses with correct tax rates.
Filing Schedule Management — Automate remittance deadlines to avoid penalties.
Reconciliation — Verify tax collected versus tax remitted monthly.
Input Credit Review — Identify and claim missed credits under CRA and Revenu Québec rules.
CPA Oversight — Audit all filings for accuracy and completeness before submission.

Powering Client Needs and Tax Precision
A Montreal retail business avoided $25,000 in penalties after Mackisen corrected QST filing errors. A Quebec wholesaler increased refunds by properly claiming input tax credits. A Toronto service firm streamlined multi-province filings through Mackisen’s cloud-based system.
How Mackisen Clients Benefit

• Accurate GST/QST filings and reconciliation

• Elimination of audit-triggering discrepancies

• Maximized input tax credit recovery

• Automated remittance scheduling

• CPA-certified compliance oversight

Common Questions
Do I need to file both GST and QST? Yes, if registered in Quebec.
Can I claim GST/QST on purchases? Yes, for eligible business expenses.
How often must I remit taxes? Monthly, quarterly, or annually, depending on revenue.
What happens if I file late? CRA and Revenu Québec charge immediate penalties.
Can Mackisen handle filings? Yes—we manage all GST/QST submissions and documentation.

Why Mackisen
Mackisen CPA Auditors Montreal ensures sales tax compliance through precision, automation, and CPA verification. Our systems eliminate errors, reduce penalties, and make GST/QST filing effortless for every business.