6 Online Marketplace Sellers 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 online marketplace sellers work, not a general example.
Case Study 1 · CRA review defended
Audit Defence Closed In 4 Weeks, $53,000 Cleared — Shopify Store Shipping Nationwide, Windsor
Client: A Shopify store shipping nationwide · Where: Windsor, Ontario · Engagement: 4 weeks, fixed fee
Proposed tax cleared$53,000
Review duration4 weeks
OutcomeNo change
The situation
A Shopify store shipping nationwide in Windsor, Ontario was selected for review after a previous accountant with no experience of this sector showed up in the CRA's automated matching. The proposed adjustment on online marketplace sellers accounting and tax came to $53,000.
What we did
We reassigned the asset classes on the CCA schedule and corrected the opening balances. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result
The review closed with no change. $53,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 2 · Deadline rescue
3-Week Turnaround Beat The Deadline And Saved $47,000 — Subscription Box Company, Brampton
Client: A subscription box company · Where: Brampton, Ontario · Engagement: 3 weeks, fixed fee
Late-filing penalty avoided$47,000
Filed with7 days to spare
Next yearPapers ready
The situation
With the deadline for online marketplace sellers accounting and tax weeks away, a subscription box company in Brampton, Ontario was carrying a chart of accounts that told the owner nothing about online marketplace sellers margin. The exposure if the date slipped was around $47,000.
What we did
We rebuilt the chart of accounts around how a online marketplace sellers business actually earns and spends. The filing went in complete rather than provisional, so there was no amended return to follow.
The result
Filed with 7 days to spare. $47,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 3 · Missed incentive claimed
$12,500 In Credits Claimed That Prior Filings Had Missed — Print-On-Demand Business, Surrey
Client: A print-on-demand business · Where: Surrey, British Columbia · Engagement: 7 weeks, fixed fee
Credits claimed$12,500
Years adjusted5
Review outcomeNo adjustment
The situation
A print-on-demand business in Surrey, British Columbia had been filing for 5 years without ever claiming the incentives its activity qualified for. Behind that sat provincial credits left unclaimed alongside every federal filing.
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
$12,500 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 4 · Records and systems rebuilt
11 Months Reconciled And $18,500 Of Input Tax Recovered — Cross-Border Dropshipper, Mississauga
A cross-border dropshipper in Mississauga, Ontario was carrying seasonal revenue reported without matching the costs that produced it. Nothing reconciled, and every filing started with 11 months of cleanup.
What we did
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 set the routine that keeps it clean.
The result
11 months reconciled to the bank. The close now takes 4 days, and $18,500 of previously unclaimable input tax was recovered in the process.
Case Study 5 · Sale and succession
$570,000 Sheltered By The Lifetime Capital Gains Exemption — Handmade Goods Marketplace Seller, Guelph
A handmade goods marketplace seller in Guelph, Ontario had an offer on the table and 34 months to close. The shares did not qualify for the capital gains exemption, and no valuation on file to support the price the parties had agreed was part of the reason.
What we did
We purified the corporation so the shares met the qualifying tests, then aligned the reporting calendar with the sector’s own seasonal cycle rather than a generic year-end well ahead of the closing date.
The result
The sale closed on schedule with $570,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 6 · Cash and remittance control
Remittance Schedule Corrected, $119,000 Refunded — Supplements Brand, Victoria
Client: A supplements brand · Where: Victoria, British Columbia · Engagement: 9 weeks, fixed fee
Overpayment refunded$119,000
Late remittances sinceZero
ScheduleAutomated
The situation
Remittances at a supplements brand in Victoria, British Columbia 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 $119,000 of overpaid instalments was refunded.
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.
