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Canada
Our GST/HST Workpaper Support Service helps accounting firms, finance leaders, and business owners streamline their Canadian sales tax compliance. We prepare, reconcile, and validate audit-ready working papers, ensuring every return submitted to the Canada Revenue Agency (CRA) is fully documented, mathematically sound, and tax-compliant.
Core Service Offerings
1. Sales & Output Tax Reconciliation
Reconcile gross revenues from general ledgers (GL) against taxable, zero-rated, and exempt categories.
Cross-reference sales registers across multiple e-commerce platforms, billing systems, and POS systems with reported GL figures.
Apply correct Place of Supply rules to verify appropriate provincial tax rates (5% GST vs. 13% or 15% HST) across interprovincial sales.
2. Input Tax Credit (ITC) Workpaper & Audit Review
Build structured schedules detailing all eligible ITCs claimed during the reporting period.
Verify source documentation for mandatory CRA requirements: vendor legal name, GST/HST registration number, tax breakdown, and dates.
Identify and adjust for restricted or non-deductible expenses (e.g., meals and entertainment 50% restriction, passenger vehicles, personal-use portions).
3. CRA GST/HST Return Preparation & Reconciliation
Prepare working balance sheets and GST/HST net tax calculation sheets (CRA Form GST34-2 / GST34 layout).
Complete GL clearing account reconciliations (GST Collected vs. GST Paid vs. CRA Account Remittances/Refunds).
Reconcile year-end GST/HST accounts with annual financial statements (T2 corporate tax returns or T2125 sole proprietorships).
4. Audit Defense & CRA Correspondence Support
Assemble organized, audit-ready working paper packages in response to CRA pre-assessment and post-assessment reviews.
Prepare reconciliation schedules for historical filing discrepancies, missing ITCs, or unremitted tax adjustments.
Conduct sample testing of vendor invoices to ensure full documentary compliance before submitting information to tax authorities.
Standard Workpaper Architecture & Deliverables
Every client file includes a structured, standardized workpaper package consisting of:
???? GST_HST_Workpaper_Package_[ClientName]_[Period] ??? ???? 01_Executive Summary & Net Tax Summary ??? ???? 02_General Ledger & Revenue Reconciliation (Place of Supply) ??? ???? 03_ITC Schedule & Receipt Validation Log ??? ???? 04_GL Clearing Account Reconciliation (CRA Account vs. Trial Balance) ??? ???? 05_Exception Log (Missing Tax IDs, Restricted ITCs, Mismatched Rates) ??? ???? Supporting Docs (Invoices, CRA Statement of Account, Filings)
Key Workpaper Quality Checks
| Component | Standard Check | Risk Mitigation |
|---|---|---|
| GST/HST Numbers | Validate vendor registration numbers on the CRA online registry. | Eliminates disallowed ITC claims under CRA audit. |
| Place of Supply | Map customer shipping/billing addresses to correct PST/GST/HST provincial rules. | Prevents under-collection or over-remittance of tax. |
| Recapture Rules | Apply Recaptured Input Tax Credit (RITC) adjustments where applicable (e.g., large businesses in specific provinces). | Avoids late penalty and interest charges. |
| Clearing GLs | Perform periodic zero-balance checks on sales tax clearing accounts. | Ensures out-of-period transactions don't drop out of scope. |
Software We Use
