6 worked IT Service Providers 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 it service providers work, not a specific client's file.
Case Study 1 · Structure rebuilt
Corporate Structure Rebuilt For $17,000 Of Annual Savings — Cybersecurity Firm, Saskatoon
The situation — A cybersecurity firm, Saskatoon, Saskatchewan
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 for A cybersecurity firm, Saskatoon, Saskatchewan
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 — A cybersecurity firm, Saskatoon, Saskatchewan
$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 data analytics consultancy, Toronto, Ontario
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 for A data analytics consultancy, Toronto, Ontario
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 — A data analytics consultancy, Toronto, Ontario
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, Regina, Saskatchewan
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 for An IT managed-services provider, Regina, Saskatchewan
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 — An IT managed-services provider, Regina, Saskatchewan
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, Edmonton, Alberta
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 for A B2B SaaS company, Edmonton, Alberta
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 — A B2B SaaS company, Edmonton, Alberta
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
The situation — A fintech startup, Windsor, Ontario
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 for A fintech startup, Windsor, Ontario
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 — A fintech startup, Windsor, Ontario
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 — An e-learning platform, Surrey, British Columbia
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 for An e-learning platform, Surrey, British Columbia
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 — An e-learning platform, Surrey, British Columbia
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, Founder and Tax Accountant. 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.
