6 Franchises & Franchisees tax and accounting engagements in full — what the client came to us with, what we did, and what it was worth. Each one is specific to franchises & franchisees work, not a general example.
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
An assessment of $107,000 landed at a handmade goods marketplace seller in Surrey, British Columbia following a desk review. The auditor had not seen the records behind industry-specific reporting obligations nobody had flagged.
What we did
We aligned the reporting calendar with the sector’s own seasonal cycle rather than a generic year-end, then set out the legislative basis for the position alongside the documents supporting it.
The result
$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 in Calgary, Alberta had been filing for 7 years without ever claiming the incentives its activity qualified for. Behind that sat sector incentives that had never been tested against franchises & franchisees activity.
What we did
We tested each activity against the eligibility criteria rather than the description on the invoice, then reviewed every sector-specific deduction against the current rules and claimed the ones that had been missed.
The result
$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
Remittances at a Shopify store shipping nationwide in Windsor, Ontario were consistently late by a few days, which 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
We reassigned the asset classes on the CCA schedule and corrected the opening balances, then moved the remittance dates into a scheduled process rather than a monthly decision.
The result
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 structure at a cross-border dropshipper in London, Ontario had been set up years earlier for a business that no longer existed, and a previous accountant with no experience of this sector had become expensive.
What we did
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
$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 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 and proposed an adjustment of $34,000, with 30 days to respond.
What we did
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, then indexed every supporting document against the specific line the auditor had questioned.
The result
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 in Kelowna, British Columbia could not answer basic questions about its own numbers, because seasonal revenue reported without matching the costs that produced it sat between the bank statements and the ledger.
What we did
We aligned the reporting calendar with the sector’s own seasonal cycle rather than a generic year-end, then documented the process so the work does not depend on any one person remembering how it was done.
The result
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 for the 2025 tax year by Udit Gupta, Certified Tax Accountant. Figures describe representative engagements of this type; outcomes depend on your own facts. Client names and identifying details are omitted for confidentiality.
