6 worked Tire Shops case studies — the position a client typically comes to us with, what we do, and what it is worth. Each is an illustrative example built on the rules that apply to tire shops work, not a specific client's file.
Case Study 1 · Backlog brought current
Collections Halted And $76,000 Cut From A 4-Year Backlog — Mobile Mechanic Business, Saskatoon
Client: A mobile mechanic business · Where: Saskatoon, Saskatchewan · Engagement: 9 weeks, fixed fee
Balance reduced by$76,000
Backlog cleared4 years
CollectionsHalted
The situation — A mobile mechanic business, Saskatoon, Saskatchewan
By the time a mobile mechanic business in Saskatoon, Saskatchewan called, 4 years were outstanding. The CRA had assessed on estimates. Underneath it sat a chart of accounts that told the owner nothing about tire shops margin.
What we did for A mobile mechanic business, Saskatoon, Saskatchewan
We reconstructed the records year by year. We aligned the reporting calendar with the sector’s own seasonal cycle rather than a generic year-end. Each filing replaced an arbitrary assessment with a real one.
The result — A mobile mechanic business, Saskatoon, Saskatchewan
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $76,000, and a relief application addressed part of the accumulated interest.
Case Study 2 · Scaling without breaking
Growth Handled Without A Missed Filing, $21,500 Freed — Used Car Dealership, Ottawa
Client: A used car dealership · Where: Ottawa, Ontario · Engagement: 9 weeks, fixed fee
Cash freed$21,500
Compliance failuresNone
ReportingMonthly
The situation — A used car dealership, Ottawa, Ontario
A used car dealership in Ottawa, Ontario was opening in a second province. That meant different filing obligations and a different payroll regime. Seasonal revenue reported without matching the costs that produced it already sat in the file.
What we did for A used car dealership, Ottawa, Ontario
We reassigned the asset classes on the CCA schedule and corrected the opening balances. We then put monthly reporting in place. That let the owner see the cash effect of growth while there was still time to act on it.
The result — A used car dealership, Ottawa, Ontario
Growth was absorbed without a compliance failure. $21,500 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 3 · Deadline rescue
3-Week Turnaround Beat The Deadline And Saved $17,000 — Fleet Maintenance Provider, Toronto
The situation — A fleet maintenance provider, Toronto, Ontario
A fleet maintenance provider in Toronto, Ontario was weeks away from the deadline for tire shops accounting and tax. Behind that sat sector deductions claimed on a general-business basis rather than the tire shops rules. The exposure if the date slipped was around $17,000.
What we did for A fleet maintenance provider, Toronto, Ontario
We rebuilt the chart of accounts around how a tire shops business actually earns and spends. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — A fleet maintenance provider, Toronto, Ontario
Filed with 17 days to spare. $17,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 4 · Sale and succession
Share Sale Restructured, $245,000 Less Tax On Closing — Collision Repair Centre, Moncton
Client: A collision repair centre · Where: Moncton, New Brunswick · Engagement: 6 weeks, fixed fee
Tax saved on closing$245,000
PriceAs agreed
Post-closing adjustmentsNone
The situation — A collision repair centre, Moncton, New Brunswick
A collision repair centre in Moncton, New Brunswick was preparing to sell. Due diligence surfaced a single shareholder holding every share, with no room to multiply the exemption. That would have reduced the price or killed the deal outright.
What we did for A collision repair centre, Moncton, New Brunswick
We cleaned up the historical file. We reviewed every sector-specific deduction against the current rules and claimed the ones that had been missed. Then we prepared the due-diligence package the buyer's advisers actually asked for.
The result — A collision repair centre, Moncton, New Brunswick
The deal closed at the agreed price. $245,000 of tax was saved against the structure originally proposed, with no post-closing adjustment.
Case Study 5 · Planning that cut the bill
Remuneration Review Saved $59,000 Across Corporate And Personal Returns — Car Wash, Regina
Client: A car wash and detailing group · Where: Regina, Saskatchewan · Engagement: 5 weeks, fixed fee
Combined saving$59,000
ScopeCorporate + personal
Future yearsNo rework needed
The situation — A car wash and detailing group, Regina, Saskatchewan
Nothing was wrong at a car wash and detailing group in Regina, Saskatchewan. The filings were on time and accurate. What they were not was planned. A previous accountant with no experience of this sector had never been reviewed.
What we did for A car wash and detailing group, Regina, Saskatchewan
We documented the positions to the standard the CRA applies to this sector specifically. We ran the numbers across both the corporate and personal returns, so the saving was real rather than deferred into someone else's hands.
The result — A car wash and detailing group, Regina, Saskatchewan
$59,000 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
Case Study 6 · Objection and relief
$141,000 Of Penalties And Interest Cancelled On Relief — Tire and Service Chain, Halifax
Client: A tire and service chain · Where: Halifax, Nova Scotia · Engagement: 9 weeks, fixed fee
Penalties and interest cancelled$141,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — A tire and service chain, Halifax, Nova Scotia
An assessment of $141,000 landed at a tire and service chain in Halifax, Nova Scotia following a desk review. It turned on equipment and asset classes assigned by guesswork rather than the CCA schedule. The auditor had not seen the records behind it.
What we did for A tire and service chain, Halifax, Nova Scotia
We aligned the reporting calendar with the sector’s own seasonal cycle rather than a generic year-end. We then set out the legislative basis for the position alongside the documents supporting it.
The result — A tire and service chain, Halifax, Nova Scotia
$141,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Reviewed by Udit Gupta, Founder and Tax Accountant for the 2025 tax year. These case studies are illustrative worked examples composed from the CRA rules that apply to this type of work, not specific client files; figures are representative and outcomes depend on your own facts.
