6 Bars & Pubs 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 bars & pubs work, not a general example.
Case Study 1 · CRA review defended
$45,000 Proposed Adjustment Withdrawn In Full — Food Truck Operator, Lethbridge
Client: A food truck operator · Where: Lethbridge, Alberta · Engagement: 10 weeks, fixed fee
Adjustment withdrawn$45,000
File closed in10 weeks
Penalties assessedNone
The situation
A food truck operator in Lethbridge, Alberta received a proposal letter opening a review of bars & pubs accounting and tax. The CRA had identified sector deductions claimed on a general-business basis rather than the bars & pubs rules and proposed an adjustment of $45,000, with 30 days to respond.
What we did
We treated the response as an evidence exercise rather than an argument. We documented the positions to the standard the CRA applies to this sector specifically, then indexed every supporting document against the specific line the auditor had questioned.
The result
The proposed adjustment was withdrawn in full — all $45,000 of it. The file closed in 10 weeks with no change to the assessed amounts and no penalty.
Client: A coffee shop group · Where: Kelowna, British Columbia · Engagement: 4 weeks, fixed fee
Annual saving$60,000
ReorganisationTax-neutral
StructureMatches operations
The situation
A coffee shop group in Kelowna, British Columbia was carrying seasonal revenue reported without matching the costs that produced it, and every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did
Working with the client's lawyer, we reassigned the asset classes on the CCA schedule and corrected the opening balances and prepared the elections, resolutions and valuations the structure needed to stand up.
The result
The structure now matches the business. Annual saving of $60,000, and the reorganisation itself was tax-neutral.
Client: A catering company · Where: Moncton, New Brunswick · Engagement: 3 weeks, fixed fee
Overpayment refunded$14,500
Late remittances sinceZero
ScheduleAutomated
The situation
Remittances at a catering company in Moncton, New Brunswick 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 reviewed every sector-specific deduction against the current rules and claimed the ones that had been missed, then moved the remittance dates into a scheduled process rather than a monthly decision.
The result
Penalties stopped from the following remittance onwards, and $14,500 of overpaid instalments was refunded.
Case Study 4 · Missed incentive claimed
Incentive Review Recovered $55,000 Across 3 Open Years — Craft Brewery with a, Victoria
Client: A craft brewery with a taproom · Where: Victoria, British Columbia · Engagement: 8 weeks, fixed fee
Recovered$55,000
Open years claimed3
Ongoing trackingIn place
The situation
An incentive review at a craft brewery with a taproom in Victoria, British Columbia started from a simple question: what has never been claimed? The answer ran to 3 years, driven by provincial credits left unclaimed alongside every federal filing.
What we did
We aligned the reporting calendar with the sector’s own seasonal cycle rather than a generic year-end, documenting eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result
The credits produced $55,000 across the open years, and the tracking now in place means the following year's claim is documented as the work happens rather than reconstructed afterwards.
Case Study 5 · Objection and relief
$126,000 Of Penalties And Interest Cancelled On Relief — Quick-Service Franchise Operator, Kitchener
An assessment of $126,000 landed at a quick-service franchise operator in Kitchener, Ontario following a desk review. The auditor had not seen the records behind industry-specific reporting obligations nobody had flagged.
What we did
We rebuilt the chart of accounts around how a bars & pubs business actually earns and spends, then set out the legislative basis for the position alongside the documents supporting it.
The result
$126,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 6 · Planning that cut the bill
$49,000 Saved By Correcting What Prior Filings Had Missed — Two-Location Bistro, Brampton
A two-location bistro in Brampton, Ontario asked for a second opinion on bars & pubs accounting and tax after three years of rising tax. The review found a chart of accounts that told the owner nothing about bars & pubs margin.
What we did
We built the comparison first — current structure against two alternatives — and then documented the positions to the standard the CRA applies to this sector specifically.
The result
First-year saving of $49,000, with the same benefit recurring. Every position taken is documented and supported in the file.
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.
