6 worked Franchises & Franchisees 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 franchises & franchisees work, not a specific client's file.
Case Study 1 · Objection and relief
$107,000 Of Penalties And Interest Cancelled On Relief — Handmade Goods Marketplace Seller, Surrey
Client: A handmade goods marketplace seller · Where: Surrey, British Columbia · Engagement: 5 weeks, fixed fee
Penalties and interest cancelled$107,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — A handmade goods marketplace seller, Surrey, British Columbia
An assessment of $107,000 landed at a handmade goods marketplace seller in Surrey, British Columbia following a desk review. It turned on industry-specific reporting obligations nobody had flagged. The auditor had not seen the records behind it.
What we did for A handmade goods marketplace seller, Surrey, British Columbia
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 handmade goods marketplace seller, Surrey, British Columbia
$107,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 2 · Missed incentive claimed
$139,000 In Credits Claimed That Prior Filings Had Missed — Pet Products Retailer, Calgary
Client: A pet products retailer · Where: Calgary, Alberta · Engagement: 10 weeks, fixed fee
Credits claimed$139,000
Years adjusted7
Review outcomeNo adjustment
The situation — A pet products retailer, Calgary, Alberta
A pet products retailer in Calgary, Alberta had been filing for 7 years. In that time, the incentives its activity qualified for were never claimed. Behind that sat sector incentives that had never been tested against franchises & franchisees activity.
What we did for A pet products retailer, Calgary, Alberta
We tested each activity against the eligibility criteria rather than the description on the invoice. Then we reviewed every sector-specific deduction against the current rules and claimed the ones that had been missed.
The result — A pet products retailer, Calgary, Alberta
$139,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Client: A Shopify store shipping nationwide · Where: Windsor, Ontario · Engagement: 6 weeks, fixed fee
Overpayment refunded$42,000
Late remittances sinceZero
ScheduleAutomated
The situation — A Shopify store shipping nationwide, Windsor, Ontario
Remittances at a Shopify store shipping nationwide in Windsor, Ontario were consistently late by a few days. That was enough to trigger penalties every quarter. Behind it sat equipment and asset classes assigned by guesswork rather than the CCA schedule.
What we did for A Shopify store shipping nationwide, Windsor, Ontario
We reassigned the asset classes on the CCA schedule and corrected the opening balances. Then we moved the remittance dates into a scheduled process rather than a monthly decision.
The result — A Shopify store shipping nationwide, Windsor, Ontario
Penalties stopped from the following remittance onwards, and $42,000 of overpaid instalments was refunded.
Case Study 4 · Structure rebuilt
Corporate Structure Rebuilt For $53,000 Of Annual Savings — Cross-Border Dropshipper, London
The situation — A cross-border dropshipper, London, Ontario
The structure at a cross-border dropshipper in London, Ontario dated from years earlier. It had been set up for a business that no longer existed. A previous accountant with no experience of this sector had become expensive.
What we did for A cross-border dropshipper, London, Ontario
We documented the positions to the standard the CRA applies to this sector specifically. The reorganisation used the rollover provisions rather than a taxable transfer, so no tax fell due on the restructuring itself.
The result — A cross-border dropshipper, London, Ontario
$53,000 of annual saving, achieved on a tax-deferred basis. The minute book, elections and valuations are all in the file.
Case Study 5 · CRA review defended
$34,000 Proposed Adjustment Withdrawn In Full — Consumer Electronics Reseller, Edmonton
Client: A consumer electronics reseller · Where: Edmonton, Alberta · Engagement: 11 weeks, fixed fee
Adjustment withdrawn$34,000
File closed in11 weeks
Penalties assessedNone
The situation — A consumer electronics reseller, Edmonton, Alberta
A consumer electronics reseller in Edmonton, Alberta received a proposal letter opening a review of franchises & franchisees accounting and tax. The CRA had identified a chart of accounts that told the owner nothing about franchises & franchisees margin. It proposed an adjustment of $34,000, with 30 days to respond.
What we did for A consumer electronics reseller, Edmonton, Alberta
We treated the response as an evidence exercise rather than an argument. We rebuilt the chart of accounts around how a franchises & franchisees business actually earns and spends. We then indexed every supporting document against the specific line the auditor had questioned.
The result — A consumer electronics reseller, Edmonton, Alberta
The proposed adjustment was withdrawn in full — all $34,000 of it. The file closed in 11 weeks with no change to the assessed amounts and no penalty.
Case Study 6 · Records and systems rebuilt
Books Rebuilt From Source, $10,000 In Unclaimed Input Tax Found — Amazon FBA Seller, Kelowna
Client: An Amazon FBA seller · Where: Kelowna, British Columbia · Engagement: 4 weeks, fixed fee
Unclaimed tax found$10,000
Records rebuilt9 months
ProcessDocumented
The situation — An Amazon FBA seller, Kelowna, British Columbia
An Amazon FBA seller in Kelowna, British Columbia could not answer basic questions about its own numbers. Seasonal revenue reported without matching the costs that produced it sat between the bank statements and the ledger.
What we did for An Amazon FBA seller, Kelowna, British Columbia
We aligned the reporting calendar with the sector’s own seasonal cycle rather than a generic year-end. We then documented the process so the work does not depend on any one person remembering how it was done.
The result — An Amazon FBA seller, Kelowna, British Columbia
Records rebuilt and reconciled, $10,000 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
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.
