6 worked Money Services Businesses 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 money services businesses work, not a specific client's file.
Case Study 1 · Deadline rescue
Filed On Time From A Standing Start, $42,000 Penalty Avoided — Financial Planning Practice, Burnaby
Client: A financial planning practice · Where: Burnaby, British Columbia · Engagement: 11 weeks, fixed fee
Penalty avoided$42,000
Turnaround11 weeks
FiledOn time
The situation — A financial planning practice, Burnaby, British Columbia
A financial planning practice in Burnaby, British Columbia came to us 11 weeks before its filing deadline. The file came with a previous accountant with no experience of this sector. A late filing would have triggered a penalty of roughly $42,000 before interest.
What we did for A financial planning practice, Burnaby, British Columbia
We worked backwards from the deadline. We reassigned the asset classes on the CCA schedule and corrected the opening balances. We prioritised the items that actually gated the filing and deferred everything that did not.
The result — A financial planning practice, Burnaby, British Columbia
The return was filed on time and complete. The $42,000 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Case Study 2 · Missed incentive claimed
$75,000 In Credits Claimed That Prior Filings Had Missed — Private Lending Business, Victoria
Client: A private lending business · Where: Victoria, British Columbia · Engagement: 4 weeks, fixed fee
Credits claimed$75,000
Years adjusted5
Review outcomeNo adjustment
The situation — A private lending business, Victoria, British Columbia
A private lending business in Victoria, British Columbia had been filing for 5 years. In that time, the incentives its activity qualified for were never claimed. Behind that sat development and improvement work written off as ordinary overhead.
What we did for A private lending business, Victoria, British Columbia
We tested each activity against the eligibility criteria rather than the description on the invoice. Then we documented the positions to the standard the CRA applies to this sector specifically.
The result — A private lending business, Victoria, British Columbia
$75,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 3 · Records and systems rebuilt
Books Rebuilt From Source, $21,000 In Unclaimed Input Tax Found — Insurance Brokerage, Guelph
The situation — An insurance brokerage, Guelph, Ontario
An insurance brokerage in Guelph, Ontario could not answer basic questions about its own numbers. Industry-specific reporting obligations nobody had flagged sat between the bank statements and the ledger.
What we did for An insurance brokerage, Guelph, Ontario
We rebuilt the chart of accounts around how a money services businesses business actually earns and spends. We then documented the process so the work does not depend on any one person remembering how it was done.
The result — An insurance brokerage, Guelph, Ontario
Records rebuilt and reconciled, $21,000 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 4 · Sale and succession
$475,000 Sheltered By The Lifetime Capital Gains Exemption — Bookkeeping and Payroll Bureau, Mississauga
Client: A bookkeeping and payroll bureau · Where: Mississauga, Ontario · Engagement: 10 weeks, fixed fee
Gain sheltered$475,000
ClosingOn schedule
Share qualificationMet
The situation — A bookkeeping and payroll bureau, Mississauga, Ontario
A bookkeeping and payroll bureau in Mississauga, Ontario had an offer on the table and 23 months to close. The shares did not qualify for the capital gains exemption. A minute book with no resolutions behind a decade of dividends was part of the reason.
What we did for A bookkeeping and payroll bureau, Mississauga, Ontario
We purified the corporation so the shares met the qualifying tests. We aligned the reporting calendar with the sector’s own seasonal cycle rather than a generic year-end. All of it was done well ahead of the closing date.
The result — A bookkeeping and payroll bureau, Mississauga, Ontario
The sale closed on schedule with $475,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 5 · Cash and remittance control
Instalments Rebased, $147,000 Of Cash Returned To The Business — Captive Insurance Manager, Surrey
Client: A captive insurance manager · Where: Surrey, British Columbia · Engagement: 8 weeks, fixed fee
Cash returned$147,000
Instalment basisCurrent year
ReviewedQuarterly
The situation — A captive insurance manager, Surrey, British Columbia
A captive insurance manager in Surrey, British Columbia was paying instalments calculated on a prior year. That year no longer reflected the business. Sector deductions claimed on a general-business basis rather than the money services businesses rules was tying up $147,000 of cash.
What we did for A captive insurance manager, Surrey, British Columbia
We rebased the instalments on the current-year estimate rather than the prior-year default. Alongside that, we reviewed every sector-specific deduction against the current rules and claimed the ones that had been missed.
The result — A captive insurance manager, Surrey, British Columbia
$147,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 6 · Backlog brought current
Collections Halted And $24,000 Cut From A 4-Year Backlog — Investment Advisory Firm, Brampton
The situation — An investment advisory firm, Brampton, Ontario
By the time an investment advisory firm in Brampton, Ontario called, 4 years were outstanding. The CRA had assessed on estimates. Underneath it sat equipment and asset classes assigned by guesswork rather than the CCA schedule.
What we did for An investment advisory firm, Brampton, Ontario
We reconstructed the records year by year. We reassigned the asset classes on the CCA schedule and corrected the opening balances. Each filing replaced an arbitrary assessment with a real one.
The result — An investment advisory firm, Brampton, Ontario
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $24,000, and a relief application addressed part of the accumulated interest.
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.
