Organization presentation and challenges

A CEGEP mandated Consultaxe to improve their fiscal processes. The institution had makes a combination of exempt and taxable supplies. It made filed elections under sections 211 ETA and 272 QTA with respect to the CEGEP’s buildings. The institution was responsible for a College Center for Technology Transfer (CCTT) and considered that the CCTT carried out exclusively commercial activities. Revenu Québec contacted the CEGEP to inform it that the institution would be audited. A request to update the percentage of use of the the CEGEP’s building in commercial activities was requested, but it had not been updated in over 15 years. In addition, Revenu Québec questioned the basis for the CCTT’s commercial activities.

Unfolding of the project and results

Consultaxe tax specialists performed a tax compliance audit using our automated software and identified unclaimed GST and QST that were applied against the assessment issued by Revenu Quebec.

Our team analyzed Revenu Québec’s position on the CCTT. The percentage of use of the building for commercial activities was updated. Our specialists discovered that ITCs and ITRs claimed in connection with certain projects might be denied by Revenu Québec. We therefore assisted the client in making representations to Revenu Québec in order to minimize the assessment in respect of this item.

A detailed report was presented to the CEGEP in order to give a portrait of the work done by our team.