6 worked Bars & Pubs 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 bars & pubs work, not a specific client's file.
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$45,000 Proposed Adjustment Withdrawn In Full — Food Truck Operator, Lethbridge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Adjustment withdrawn$45,000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, Lethbridge, Alberta
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. It proposed an adjustment of $45,000, with 30 days to respond.
What we did for A food truck operator, Lethbridge, Alberta
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. We then indexed every supporting document against the specific line the auditor had questioned.
The result — A food truck operator, Lethbridge, Alberta
The proposed adjustment was withdrawn in full — all $45,000 of it.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, Kelowna, British Columbia
The structure at a coffee shop group in Kelowna, British Columbia needed fixing. The file was carrying seasonal revenue reported without matching the costs that produced it. Every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did for A coffee shop group, Kelowna, British Columbia
We worked with the client's lawyer. Together, we reassigned the asset classes on the CCA schedule and corrected the opening balances. We also prepared the elections, resolutions and valuations the structure needed to stand up.
The result — A coffee shop group, Kelowna, British Columbia
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 — A catering company, Moncton, New Brunswick
Remittances at a catering company in Moncton, New Brunswick were consistently late by a few days. That 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 for A catering company, Moncton, New Brunswick
We reviewed every sector-specific deduction against the current rules and claimed the ones that had been missed. Then we moved the remittance dates into a scheduled process rather than a monthly decision.
The result — A catering company, Moncton, New Brunswick
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, 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 — A craft brewery with a taproom, Victoria, British Columbia
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. It was driven by provincial credits left unclaimed alongside every federal filing.
What we did for A craft brewery with a taproom, Victoria, British Columbia
We aligned the reporting calendar with the sector’s own seasonal cycle rather than a generic year-end. We documented eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result — A craft brewery with a taproom, Victoria, British Columbia
The credits produced $55,000 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 5 · Objection and relief
$126,000 Of Penalties And Interest Cancelled On Relief — Quick-Service Franchise Operator, Kitchener
The situation — A quick-service franchise operator, Kitchener, Ontario
An assessment of $126,000 landed at a quick-service franchise operator in Kitchener, Ontario following a desk review. It turned on industry-specific reporting obligations nobody had flagged. The auditor had not seen the records behind it.
What we did for A quick-service franchise operator, Kitchener, Ontario
We rebuilt the chart of accounts around how a bars & pubs business actually earns and spends. We then set out the legislative basis for the position alongside the documents supporting it.
The result — A quick-service franchise operator, Kitchener, Ontario
$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
The situation — A two-location bistro, Brampton, Ontario
A two-location bistro in Brampton, Ontario asked for a second opinion on bars & pubs accounting and tax. That followed three years of rising tax. The review found a chart of accounts that told the owner nothing about bars & pubs margin.
What we did for A two-location bistro, Brampton, Ontario
We built the comparison first: current structure against two alternatives. Then we documented the positions to the standard the CRA applies to this sector specifically.
The result — A two-location bistro, Brampton, Ontario
First-year saving of $49,000, with the same benefit recurring. Every position taken is documented and supported in the file.
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.
