6 worked Digital Goods Sellers 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 digital goods sellers work, not a specific client's file.
Case Study 1 · Records and systems rebuilt
24 Months Reconciled And $11,000 Of Input Tax Recovered — Handmade Goods Marketplace Seller, Windsor
The situation — A handmade goods marketplace seller, Windsor, Ontario
A handmade goods marketplace seller in Windsor, Ontario was carrying a previous accountant with no experience of this sector. Nothing reconciled, and every filing started with 24 months of cleanup.
What we did for A handmade goods marketplace seller, Windsor, Ontario
We rebuilt from source rather than correcting on top of the existing file. We aligned the reporting calendar with the sector’s own seasonal cycle rather than a generic year-end, then set the routine that keeps it clean.
The result — A handmade goods marketplace seller, Windsor, Ontario
24 months reconciled to the bank. The close now takes 8 days, and $11,000 of previously unclaimable input tax was recovered in the process.
Case Study 2 · Backlog brought current
3 Years Filed, $63,000 Removed From The Assessed Balance — Direct-To-Consumer Apparel Brand, Mississauga
The situation — A direct-to-consumer apparel brand, Mississauga, Ontario
A direct-to-consumer apparel brand in Mississauga, Ontario had not filed for 3 years. The CRA had issued arbitrary assessments, and the business was carrying equipment and asset classes assigned by guesswork rather than the CCA schedule on top of a growing interest balance.
What we did for A direct-to-consumer apparel brand, Mississauga, Ontario
We started with the oldest year and worked forward so each year's closing balances fed the next. We reassigned the asset classes on the CCA schedule and corrected the opening balances, filing the years in sequence rather than all at once.
The result — A direct-to-consumer apparel brand, Mississauga, Ontario
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $63,000 of the estimated balance came off, with a payment arrangement covering the rest.
Case Study 3 · Scaling without breaking
Growth Handled Without A Missed Filing, $74,000 Freed — Print-On-Demand Business, Burnaby
Client: A print-on-demand business · Where: Burnaby, British Columbia · Engagement: 7 weeks, fixed fee
Cash freed$74,000
Compliance failuresNone
ReportingMonthly
The situation — A print-on-demand business, Burnaby, British Columbia
A print-on-demand business in Burnaby, British Columbia was opening in a second province — different filing obligations, a different payroll regime, and seasonal revenue reported without matching the costs that produced it already in the file.
What we did for A print-on-demand business, Burnaby, British Columbia
We rebuilt the chart of accounts around how a digital goods sellers business actually earns and spends and put monthly reporting in place so the owner could see the cash effect of growth while there was still time to act on it.
The result — A print-on-demand business, Burnaby, British Columbia
Growth was absorbed without a compliance failure. $74,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Client: A consumer electronics reseller · Where: Kelowna, British Columbia · Engagement: 9 weeks, fixed fee
Penalty cancelled$112,000
Relief applicationGranted
ReturnAccepted as filed
The situation — A consumer electronics reseller, Kelowna, British Columbia
A consumer electronics reseller in Kelowna, British Columbia had already missed one deadline and was about to miss a second. Behind it sat a chart of accounts that told the owner nothing about digital goods sellers margin, and a penalty of $112,000 was accruing.
What we did for A consumer electronics reseller, Kelowna, British Columbia
We split the work into what had to happen before the deadline and what could follow it, then reviewed every sector-specific deduction against the current rules and claimed the ones that had been missed.
The result — A consumer electronics reseller, Kelowna, British Columbia
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $112,000 of the penalty already assessed on the earlier year.
Case Study 5 · Sale and succession
$275,000 Sheltered By The Lifetime Capital Gains Exemption — Shopify Store Shipping Nationwide, Winnipeg
Client: A Shopify store shipping nationwide · Where: Winnipeg, Manitoba · Engagement: 5 weeks, fixed fee
Gain sheltered$275,000
ClosingOn schedule
Share qualificationMet
The situation — A Shopify store shipping nationwide, Winnipeg, Manitoba
A Shopify store shipping nationwide in Winnipeg, Manitoba had an offer on the table and 24 months to close. The shares did not qualify for the capital gains exemption, and a single shareholder holding every share, with no room to multiply the exemption was part of the reason.
What we did for A Shopify store shipping nationwide, Winnipeg, Manitoba
We purified the corporation so the shares met the qualifying tests, then documented the positions to the standard the CRA applies to this sector specifically well ahead of the closing date.
The result — A Shopify store shipping nationwide, Winnipeg, Manitoba
The sale closed on schedule with $275,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 6 · Planning that cut the bill
Remuneration Review Saved $21,000 Across Corporate And Personal Returns — Supplements Brand, Kitchener
The situation — A supplements brand, Kitchener, Ontario
Nothing was wrong at a supplements brand in Kitchener, Ontario — the filings were on time and accurate. What they were not was planned. Sector deductions claimed on a general-business basis rather than the digital goods sellers rules had never been reviewed.
What we did for A supplements brand, Kitchener, Ontario
We aligned the reporting calendar with the sector’s own seasonal cycle rather than a generic year-end, and 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 supplements brand, Kitchener, Ontario
$21,000 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
Reviewed for the 2025 tax year by Udit Gupta, Founder and Tax Accountant. 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.
