ARTICLE · 06 FEBRUARY 2025

Tax Obligations And The Construction Industry

De Grandpré Chait

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Tax requirements for the construction industry are the same as for any entity operating a business in Québec. However, over the years, tax authorities have identified certain issues...

CanadaTax

Julie Gaudreault-Martel

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Tax requirements for the construction industry are the same as for any entity operating a business in Québec. However, over the years, tax authorities have identified certain issues that are more specific to the construction industry, such as:

False invoicing;
Illegal employment;
Personal expenses charged to the company;
The use of company property for personal purposes.

Like all taxpayers, companies are subject to two types of government action when it comes to taxation: civil audits and penal and criminal investigations.

Tax Audits: Objections Raised by Tax Authorities

Tax audits, provided for in Division VI (Audits, Investigations and Inquiries) of the Tax Administration Act,¹ are designed to detect the above-mentioned problems and are conducted by an auditor representing one of the two tax authorities (provincial or federal).

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