6 worked App Developers 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 app developers work, not a specific client's file.
Case Study 1 · Scaling without breaking
Scaled To 15 Staff With $22,000 Of Working Capital Freed — Custom Software Development Shop, Lethbridge
Client: A custom software development shop · Where: Lethbridge, Alberta · Engagement: 8 weeks, fixed fee
Headcount reached15
Working capital freed$22,000
Missed deadlinesZero
The situation — A custom software development shop, Lethbridge, Alberta
A custom software development shop in Lethbridge, Alberta was growing fast, with headcount reaching 15 in eighteen months. The back office had not kept up. Sector deductions claimed on a general-business basis rather than the app developers rules was the first thing to break.
What we did for A custom software development shop, Lethbridge, Alberta
We aligned the reporting calendar with the sector’s own seasonal cycle rather than a generic year-end. We built the compliance calendar for the size the business was becoming rather than the size it had been.
The result — A custom software development shop, Lethbridge, Alberta
The business reached 15 staff with no missed remittance and no late filing. $22,000 of working capital was freed in the process.
Case Study 2 · Sale and succession
$665,000 Sheltered By The Lifetime Capital Gains Exemption — Data Analytics Consultancy, Winnipeg
Client: A data analytics consultancy · Where: Winnipeg, Manitoba · Engagement: 5 weeks, fixed fee
Gain sheltered$665,000
ClosingOn schedule
Share qualificationMet
The situation — A data analytics consultancy, Winnipeg, Manitoba
A data analytics consultancy in Winnipeg, Manitoba had an offer on the table and 24 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 data analytics consultancy, Winnipeg, Manitoba
We purified the corporation so the shares met the qualifying tests. We rebuilt the chart of accounts around how an app developers business actually earns and spends. All of it was done well ahead of the closing date.
The result — A data analytics consultancy, Winnipeg, Manitoba
The sale closed on schedule with $665,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 3 · Objection and relief
$49,000 Of Penalties And Interest Cancelled On Relief — E-Learning Platform, Brampton
The situation — An e-learning platform, Brampton, Ontario
An assessment of $49,000 landed at an e-learning platform in Brampton, Ontario following a desk review. It turned on a previous accountant with no experience of this sector. The auditor had not seen the records behind it.
What we did for An e-learning platform, Brampton, Ontario
We documented the positions to the standard the CRA applies to this sector specifically. We then set out the legislative basis for the position alongside the documents supporting it.
The result — An e-learning platform, Brampton, Ontario
$49,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 4 · Cash and remittance control
$130,000 Of Working Capital Freed From The Tax Cycle — B2B SaaS Company, Barrie
Client: A B2B SaaS company · Where: Barrie, Ontario · Engagement: 6 weeks, fixed fee
Working capital freed$130,000
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation — A B2B SaaS company, Barrie, Ontario
A B2B SaaS company in Barrie, Ontario was profitable on paper and short of cash every month. Equipment and asset classes assigned by guesswork rather than the CCA schedule explained most of the gap.
What we did for A B2B SaaS company, Barrie, Ontario
We reassigned the asset classes on the CCA schedule and corrected the opening balances. We also built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result — A B2B SaaS company, Barrie, Ontario
$130,000 was released back into working capital. Remittances have been on time every period since, and the forecast shows the tax outflow before it lands.
Case Study 5 · CRA review defended
$105,000 Proposed Adjustment Withdrawn In Full — Mobile App Studio, Mississauga
Client: A mobile app studio · Where: Mississauga, Ontario · Engagement: 5 weeks, fixed fee
Adjustment withdrawn$105,000
File closed in5 weeks
Penalties assessedNone
The situation — A mobile app studio, Mississauga, Ontario
A mobile app studio in Mississauga, Ontario received a proposal letter opening a review of app developers accounting and tax. The CRA had identified seasonal revenue reported without matching the costs that produced it. It proposed an adjustment of $105,000, with 30 days to respond.
What we did for A mobile app studio, Mississauga, Ontario
We treated the response as an evidence exercise rather than an argument. We reviewed every sector-specific deduction against the current rules and claimed the ones that had been missed. We then indexed every supporting document against the specific line the auditor had questioned.
The result — A mobile app studio, Mississauga, Ontario
The proposed adjustment was withdrawn in full — all $105,000 of it. The file closed in 5 weeks with no change to the assessed amounts and no penalty.
Case Study 6 · Backlog brought current
$37,500 Of Arbitrary Assessments Vacated After 6 Years — Cybersecurity Firm, Saskatoon
The situation — A cybersecurity firm, Saskatoon, Saskatchewan
6 years of unfiled returns had turned into notional assessments at a cybersecurity firm in Saskatoon, Saskatchewan. Underneath lay a chart of accounts that told the owner nothing about app developers margin. Collections had already started.
What we did for A cybersecurity firm, Saskatoon, Saskatchewan
We aligned the reporting calendar with the sector’s own seasonal cycle rather than a generic year-end. We then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result — A cybersecurity firm, Saskatoon, Saskatchewan
All 6 years were accepted as filed. $37,500 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 6 years.
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.
