A business faced a $75,000 GST/HST audit. We identified filing errors and reduced the total liability to $3,500.
A Canadian business was audited over three years of GST/HST filings, with a proposed $75,000 reassessment from mismatched input tax credits. We audited all invoices, matched records to the rules, and submitted structured reconciliations. The CRA reduced the liability to $3,500, saving about $71,500.
Registration is mandatory once taxable supplies pass $30,000 over four consecutive calendar quarters. Input tax credits require documentation that scales with invoice size.
Why it bites: Unmatched input tax credits are the first thing disallowed in a sales-tax review, and the assessment covers every period reviewed.
A review is won on documentation created at the time, not on explanations offered afterwards. The CRA asks for the source records behind a figure, and an unsupported claim is simply disallowed.
Why it bites: Most reassessments we reverse are not the result of a wrong position — they are the result of a correct position with no contemporaneous paper trail behind it.
Every engagement above was priced as a fixed fee agreed before the work started, and paid only once the client had reviewed the result. If any of this looks like your situation, the first step is a free 15-minute call — we will tell you plainly whether there is anything worth doing.
Reviewed for the 2025 tax year by Udit Gupta, Founder and Tax Accountant. This case study is based on a real client engagement handled by Tax Filings Canada; the client's name and identifying details have been changed. Outcomes depend on your own facts.
