6 worked Wholesalers 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 wholesalers work, not a specific client's file.
Case Study 1 · Records and systems rebuilt
11 Months Reconciled And $13,000 Of Input Tax Recovered — Cross-Border Dropshipper, London
The situation — A cross-border dropshipper, London, Ontario
Nothing reconciled at a cross-border dropshipper in London, Ontario. Every filing started with 11 months of cleanup. The file was carrying sector deductions claimed on a general-business basis rather than the wholesalers rules.
What we did for A cross-border dropshipper, London, Ontario
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 — A cross-border dropshipper, London, Ontario
11 months reconciled to the bank. The close now takes 10 days, and $13,000 of previously unclaimable input tax was recovered in the process.
Case Study 2 · CRA review defended
$14,000 Proposed Adjustment Withdrawn In Full — Print-On-Demand Business, Burnaby
Client: A print-on-demand business · Where: Burnaby, British Columbia · Engagement: 10 weeks, fixed fee
Adjustment withdrawn$14,000
File closed in10 weeks
Penalties assessedNone
The situation — A print-on-demand business, Burnaby, British Columbia
A print-on-demand business in Burnaby, British Columbia received a proposal letter opening a review of wholesalers accounting and tax. The CRA had identified seasonal revenue reported without matching the costs that produced it. It proposed an adjustment of $14,000, with 30 days to respond.
What we did for A print-on-demand business, Burnaby, British Columbia
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 print-on-demand business, Burnaby, British Columbia
The proposed adjustment was withdrawn in full — all $14,000 of it. The file closed in 10 weeks with no change to the assessed amounts and no penalty.
Case Study 3 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $45,000 Saved Each Year — Subscription Box Company, Brampton
Client: A subscription box company · Where: Brampton, Ontario · Engagement: 4 weeks, fixed fee
Annual saving$45,000
Tax on reorganisationDeferred
Elections filedOn time
The situation — A subscription box company, Brampton, Ontario
A subscription box company in Brampton, Ontario had outgrown the structure it started with. Equipment and asset classes assigned by guesswork rather than the CCA schedule was the immediate problem. The longer-term one was that the structure blocked the next step.
What we did for A subscription box company, Brampton, Ontario
We mapped the current structure and modelled the target. Then we reviewed every sector-specific deduction against the current rules and claimed the ones that had been missed. The tax-deferred elections were filed on time and the supporting valuations documented.
The result — A subscription box company, Brampton, Ontario
The reorganisation completed without triggering tax, and the new structure saves approximately $45,000 a year while removing the exposure the old one carried.
Case Study 4 · Cash and remittance control
Instalments Rebased, $21,000 Of Cash Returned To The Business — Shopify Store Shipping Nationwide, Regina
Client: A Shopify store shipping nationwide · Where: Regina, Saskatchewan · Engagement: 4 weeks, fixed fee
Cash returned$21,000
Instalment basisCurrent year
ReviewedQuarterly
The situation — A Shopify store shipping nationwide, Regina, Saskatchewan
A Shopify store shipping nationwide in Regina, Saskatchewan was paying instalments calculated on a prior year. That year no longer reflected the business. A previous accountant with no experience of this sector was tying up $21,000 of cash.
What we did for A Shopify store shipping nationwide, Regina, Saskatchewan
We rebased the instalments on the current-year estimate rather than the prior-year default. Alongside that, we aligned the reporting calendar with the sector’s own seasonal cycle rather than a generic year-end.
The result — A Shopify store shipping nationwide, Regina, Saskatchewan
$21,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 5 · Missed incentive claimed
Incentive Review Recovered $17,500 Across 7 Open Years — Amazon FBA Seller, Kitchener
The situation — An Amazon FBA seller, Kitchener, Ontario
An incentive review at an Amazon FBA seller in Kitchener, Ontario started from a simple question: what has never been claimed? The answer ran to 7 years. It was driven by development and improvement work written off as ordinary overhead.
What we did for An Amazon FBA seller, Kitchener, Ontario
We rebuilt the chart of accounts around how a wholesalers business actually earns and spends. We documented eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result — An Amazon FBA seller, Kitchener, Ontario
The credits produced $17,500 across the open years. The tracking now in place means the following year's claim is documented as the work happens rather than reconstructed afterwards.
Case Study 6 · Objection and relief
Notice Of Objection Allowed In Full, $56,000 Reversed — Direct-To-Consumer Apparel Brand, Red Deer
Client: A direct-to-consumer apparel brand · Where: Red Deer, Alberta · Engagement: 5 weeks, fixed fee
Amount reversed$56,000
ObjectionAllowed in full
Account balanceNil
The situation — A direct-to-consumer apparel brand, Red Deer, Alberta
A direct-to-consumer apparel brand in Red Deer, Alberta had been reassessed for $56,000. 8 days were left on the objection deadline. The reassessment rested on a chart of accounts that told the owner nothing about wholesalers margin.
What we did for A direct-to-consumer apparel brand, Red Deer, Alberta
We filed the objection inside the deadline with a complete submission rather than a placeholder. Alongside it, we documented the positions to the standard the CRA applies to this sector specifically.
The result — A direct-to-consumer apparel brand, Red Deer, Alberta
The appeals officer allowed the objection in full. $56,000 was reversed and the account returned to a nil balance.
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.
