Construction is one of CRA's most frequently audited sectors in Quebec — particularly around cash income, subcontractor payments, and GST/QST compliance.
RBQ License and Tax Implications
Valid Régie du bâtiment du Québec (RBQ) licensing is legally required for most construction work. Your RBQ number should appear on all invoices — protecting your clients' right to Input Tax Credits and demonstrating legitimacy to CRA.
T5018 Subcontractor Reporting
If your construction business pays $500+ to subcontractors in a calendar year, you must file T5018 slips (Statement of Contract Payments). Missing T5018s is a common gap that triggers CRA scrutiny.
GST/QST on Long-Term Contracts
GST/QST can be triggered at contract completion or on progress billings depending on contract structure. Percentage-of-completion vs. completed-contract accounting also affects income tax timing — and must be consistent year-to-year.
Vehicle and Equipment CCA
Claim CCA on vehicles (Class 10/10.1), heavy equipment (Class 38/56), and deduct all lease payments and fuel costs with proper vehicle logs.
Cash Economy Risks
CRA conducts regular net-worth audits in Quebec's construction sector. Always invoice and receive payment by traceable means — the risks of unreported cash income far exceed any short-term benefit.