6 IT Service Providers 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 it service providers work, not a general example.
Case Study 1 · Structure rebuilt
Corporate Structure Rebuilt For $17,000 Of Annual Savings — Cybersecurity Firm, Saskatoon
The structure at a cybersecurity firm in Saskatoon, Saskatchewan had been set up years earlier for a business that no longer existed, and a chart of accounts that told the owner nothing about it service providers margin had become expensive.
What we did
We aligned the reporting calendar with the sector’s own seasonal cycle rather than a generic year-end. The reorganisation used the rollover provisions rather than a taxable transfer, so no tax fell due on the restructuring itself.
The result
$17,000 of annual saving, achieved on a tax-deferred basis. The minute book, elections and valuations are all in the file.
Case Study 2 · CRA review defended
$82,000 Reassessment Reduced To Nil On Review — Data Analytics Consultancy, Toronto
Client: A data analytics consultancy · Where: Toronto, Ontario · Engagement: 5 weeks, fixed fee
Reassessment reduced toNil
Tax protected$82,000
Prior filingsUndisturbed
The situation
A review notice arrived at a data analytics consultancy in Toronto, Ontario covering it service providers accounting and tax for two tax years. The auditor's working position was an adjustment of $82,000, driven by seasonal revenue reported without matching the costs that produced it.
What we did
Rather than negotiate, we rebuilt the record. We reassigned the asset classes on the CCA schedule and corrected the opening balances and submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result
The auditor accepted the documented position and closed the review without adjustment, protecting $82,000 and leaving the prior filings undisturbed.
Case Study 3 · Records and systems rebuilt
Books Rebuilt From Source, $8,000 In Unclaimed Input Tax Found — IT Managed-Services Provider, Regina
Client: An IT managed-services provider · Where: Regina, Saskatchewan · Engagement: 3 weeks, fixed fee
Unclaimed tax found$8,000
Records rebuilt16 months
ProcessDocumented
The situation
An IT managed-services provider in Regina, Saskatchewan could not answer basic questions about its own numbers, because sector deductions claimed on a general-business basis rather than the it service providers rules sat between the bank statements and the ledger.
What we did
We rebuilt the chart of accounts around how a it service providers business actually earns and spends, then documented the process so the work does not depend on any one person remembering how it was done.
The result
Records rebuilt and reconciled, $8,000 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 4 · Backlog brought current
6 Years Filed, $135,000 Removed From The Assessed Balance — B2B SaaS Company, Edmonton
Client: A B2B SaaS company · Where: Edmonton, Alberta · Engagement: 10 weeks, fixed fee
Years filed6
Assessed balance removed$135,000
CollectionsStopped
The situation
A B2B SaaS company in Edmonton, Alberta had not filed for 6 years. The CRA had issued arbitrary assessments, and the business was carrying industry-specific reporting obligations nobody had flagged on top of a growing interest balance.
What we did
We started with the oldest year and worked forward so each year's closing balances fed the next. We reviewed every sector-specific deduction against the current rules and claimed the ones that had been missed, filing the years in sequence rather than all at once.
The result
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $135,000 of the estimated balance came off, with a payment arrangement covering the rest.
Case Study 5 · Scaling without breaking
Growth Handled Without A Missed Filing, $54,000 Freed — Fintech Startup, Windsor
A fintech startup in Windsor, Ontario was opening in a second province — different filing obligations, a different payroll regime, and a previous accountant with no experience of this sector already in the file.
What we did
We documented the positions to the standard the CRA applies to this sector specifically and put monthly reporting in place so the owner could see the cash effect of growth while there was still time to act on it.
The result
Growth was absorbed without a compliance failure. $54,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 6 · Deadline rescue
3-Week Turnaround Beat The Deadline And Saved $83,000 — E-Learning Platform, Surrey
Client: An e-learning platform · Where: Surrey, British Columbia · Engagement: 3 weeks, fixed fee
Late-filing penalty avoided$83,000
Filed with23 days to spare
Next yearPapers ready
The situation
With the deadline for it service providers accounting and tax weeks away, an e-learning platform in Surrey, British Columbia was carrying equipment and asset classes assigned by guesswork rather than the CCA schedule. The exposure if the date slipped was around $83,000.
What we did
We aligned the reporting calendar with the sector’s own seasonal cycle rather than a generic year-end. The filing went in complete rather than provisional, so there was no amended return to follow.
The result
Filed with 23 days to spare. $83,000 in late-filing penalties avoided, and the working papers are ready for the following year.
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.
