6 worked Restoration & Disaster Recovery 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 restoration & disaster recovery work, not a specific client's file.
Case Study 1 · Backlog brought current
Collections Halted And $87,000 Cut From A 4-Year Backlog — Drywall Subcontractor, Regina
The situation — A drywall subcontractor, Regina, Saskatchewan
By the time a drywall subcontractor in Regina, Saskatchewan called, 4 years were outstanding. The CRA had assessed on estimates. Underneath it sat industry-specific reporting obligations nobody had flagged.
What we did for A drywall subcontractor, Regina, Saskatchewan
We reconstructed the records year by year. We rebuilt the chart of accounts around how a restoration & disaster recovery business actually earns and spends. Each filing replaced an arbitrary assessment with a real one.
The result — A drywall subcontractor, Regina, Saskatchewan
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $87,000, and a relief application addressed part of the accumulated interest.
Case Study 2 · Objection and relief
Notice Of Objection Allowed In Full, $22,500 Reversed — Concrete and Forming Crew, Barrie
Client: A concrete and forming crew · Where: Barrie, Ontario · Engagement: 8 weeks, fixed fee
Amount reversed$22,500
ObjectionAllowed in full
Account balanceNil
The situation — A concrete and forming crew, Barrie, Ontario
A concrete and forming crew in Barrie, Ontario had been reassessed for $22,500. 24 days were left on the objection deadline. The reassessment rested on seasonal revenue reported without matching the costs that produced it.
What we did for A concrete and forming crew, Barrie, Ontario
We filed the objection inside the deadline with a complete submission rather than a placeholder. Alongside it, we reviewed every sector-specific deduction against the current rules and claimed the ones that had been missed.
The result — A concrete and forming crew, Barrie, Ontario
The appeals officer allowed the objection in full. $22,500 was reversed and the account returned to a nil balance.
Case Study 3 · Records and systems rebuilt
34 Months Reconciled And $11,500 Of Input Tax Recovered — Electrical Contractor, Vancouver
Client: An electrical contractor · Where: Vancouver, British Columbia · Engagement: 8 weeks, fixed fee
Months reconciled34
Input tax recovered$11,500
Close time4 days
The situation — An electrical contractor, Vancouver, British Columbia
Nothing reconciled at an electrical contractor in Vancouver, British Columbia. Every filing started with 34 months of cleanup. The file was carrying a previous accountant with no experience of this sector.
What we did for An electrical contractor, Vancouver, British Columbia
We rebuilt from source rather than correcting on top of the existing file. We documented the positions to the standard the CRA applies to this sector specifically. Then we set the routine that keeps it clean.
The result — An electrical contractor, Vancouver, British Columbia
34 months reconciled to the bank. The close now takes 4 days, and $11,500 of previously unclaimable input tax was recovered in the process.
Case Study 4 · Planning that cut the bill
$33,000 Saved By Correcting What Prior Filings Had Missed — Custom Home Builder, Surrey
Client: A custom home builder · Where: Surrey, British Columbia · Engagement: 9 weeks, fixed fee
Saving identified$33,000
RecurringYes
Positions documentedAll
The situation — A custom home builder, Surrey, British Columbia
A custom home builder in Surrey, British Columbia asked for a second opinion on restoration & disaster recovery accounting and tax. That followed three years of rising tax. The review found sector deductions claimed on a general-business basis rather than the restoration & disaster recovery rules.
What we did for A custom home builder, Surrey, British Columbia
We built the comparison first: current structure against two alternatives. Then we aligned the reporting calendar with the sector’s own seasonal cycle rather than a generic year-end.
The result — A custom home builder, Surrey, British Columbia
First-year saving of $33,000, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 5 · CRA review defended
$127,000 Proposed Adjustment Withdrawn In Full — Roofing Company, Kitchener
Client: A roofing company · Where: Kitchener, Ontario · Engagement: 4 weeks, fixed fee
Adjustment withdrawn$127,000
File closed in4 weeks
Penalties assessedNone
The situation — A roofing company, Kitchener, Ontario
A roofing company in Kitchener, Ontario received a proposal letter opening a review of restoration & disaster recovery accounting and tax. The CRA had identified a chart of accounts that told the owner nothing about restoration & disaster recovery margin. It proposed an adjustment of $127,000, with 30 days to respond.
What we did for A roofing company, Kitchener, Ontario
We treated the response as an evidence exercise rather than an argument. We reassigned the asset classes on the CCA schedule and corrected the opening balances. We then indexed every supporting document against the specific line the auditor had questioned.
The result — A roofing company, Kitchener, Ontario
The proposed adjustment was withdrawn in full — all $127,000 of it. The file closed in 4 weeks with no change to the assessed amounts and no penalty.
Case Study 6 · Sale and succession
Share Sale Restructured, $800,000 Less Tax On Closing — Mechanical and HVAC Contractor, Kelowna
Client: A mechanical and HVAC contractor · Where: Kelowna, British Columbia · Engagement: 10 weeks, fixed fee
Tax saved on closing$800,000
PriceAs agreed
Post-closing adjustmentsNone
The situation — A mechanical and HVAC contractor, Kelowna, British Columbia
A mechanical and HVAC contractor in Kelowna, British Columbia was preparing to sell. Due diligence surfaced retained cash well above what the business needed to operate. That would have reduced the price or killed the deal outright.
What we did for A mechanical and HVAC contractor, Kelowna, British Columbia
We cleaned up the historical file. We rebuilt the chart of accounts around how a restoration & disaster recovery business actually earns and spends. Then we prepared the due-diligence package the buyer's advisers actually asked for.
The result — A mechanical and HVAC contractor, Kelowna, British Columbia
The deal closed at the agreed price. $800,000 of tax was saved against the structure originally proposed, with no post-closing adjustment.
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.
