6 worked Software 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 software developers work, not a specific client's file.
Case Study 1 · Objection and relief
Notice Of Objection Allowed In Full, $116,000 Reversed — Custom Software Development Shop, London
Client: A custom software development shop · Where: London, Ontario · Engagement: 4 weeks, fixed fee
Amount reversed$116,000
ObjectionAllowed in full
Account balanceNil
The situation — A custom software development shop, London, Ontario
A custom software development shop in London, Ontario had been reassessed for $116,000 and had 19 days left on the objection deadline. The reassessment rested on sector deductions claimed on a general-business basis rather than the software developers rules.
What we did for A custom software development shop, London, Ontario
We filed the objection inside the deadline with a complete submission rather than a placeholder, and aligned the reporting calendar with the sector’s own seasonal cycle rather than a generic year-end.
The result — A custom software development shop, London, Ontario
The appeals officer allowed the objection in full. $116,000 was reversed and the account returned to a nil balance.
Case Study 2 · Cash and remittance control
Instalments Rebased, $92,000 Of Cash Returned To The Business — B2B SaaS Company, Hamilton
Client: A B2B SaaS company · Where: Hamilton, Ontario · Engagement: 5 weeks, fixed fee
Cash returned$92,000
Instalment basisCurrent year
ReviewedQuarterly
The situation — A B2B SaaS company, Hamilton, Ontario
A B2B SaaS company in Hamilton, Ontario was paying instalments calculated on a prior year that no longer reflected the business. Industry-specific reporting obligations nobody had flagged was tying up $92,000 of cash.
What we did for A B2B SaaS company, Hamilton, Ontario
We rebased the instalments on the current-year estimate rather than the prior-year default, and rebuilt the chart of accounts around how a software developers business actually earns and spends.
The result — A B2B SaaS company, Hamilton, Ontario
$92,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 3 · CRA review defended
Audit Defence Closed In 10 Weeks, $105,000 Cleared — Digital Product Agency, Mississauga
Client: A digital product agency · Where: Mississauga, Ontario · Engagement: 10 weeks, fixed fee
Proposed tax cleared$105,000
Review duration10 weeks
OutcomeNo change
The situation — A digital product agency, Mississauga, Ontario
A digital product agency in Mississauga, Ontario was selected for review after a previous accountant with no experience of this sector showed up in the CRA's automated matching. The proposed adjustment on software developers accounting and tax came to $105,000.
What we did for A digital product agency, Mississauga, Ontario
We documented the positions to the standard the CRA applies to this sector specifically. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result — A digital product agency, Mississauga, Ontario
The review closed with no change. $105,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 4 · Backlog brought current
Collections Halted And $51,000 Cut From A 7-Year Backlog — Fintech Startup, Lethbridge
Client: A fintech startup · Where: Lethbridge, Alberta · Engagement: 10 weeks, fixed fee
Balance reduced by$51,000
Backlog cleared7 years
CollectionsHalted
The situation — A fintech startup, Lethbridge, Alberta
By the time a fintech startup in Lethbridge, Alberta called, 7 years were outstanding and the CRA had assessed on estimates. Underneath it sat equipment and asset classes assigned by guesswork rather than the CCA schedule.
What we did for A fintech startup, Lethbridge, Alberta
We reconstructed the records year by year and reassigned the asset classes on the CCA schedule and corrected the opening balances. Each filing replaced an arbitrary assessment with a real one.
The result — A fintech startup, Lethbridge, Alberta
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $51,000, and a relief application addressed part of the accumulated interest.
Client: An e-learning platform · Where: Moncton, New Brunswick · Engagement: 6 weeks, fixed fee
Penalty cancelled$38,500
Relief applicationGranted
ReturnAccepted as filed
The situation — An e-learning platform, Moncton, New Brunswick
An e-learning platform in Moncton, New Brunswick had already missed one deadline and was about to miss a second. Behind it sat seasonal revenue reported without matching the costs that produced it, and a penalty of $38,500 was accruing.
What we did for An e-learning platform, Moncton, New Brunswick
We split the work into what had to happen before the deadline and what could follow it, then reviewed every sector-specific deduction against the current rules and claimed the ones that had been missed.
The result — An e-learning platform, Moncton, New Brunswick
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $38,500 of the penalty already assessed on the earlier year.
Case Study 6 · Planning that cut the bill
$45,000 Saved By Correcting What Prior Filings Had Missed — Cybersecurity Firm, Kitchener
The situation — A cybersecurity firm, Kitchener, Ontario
A cybersecurity firm in Kitchener, Ontario asked for a second opinion on software developers accounting and tax after three years of rising tax. The review found a chart of accounts that told the owner nothing about software developers margin.
What we did for A cybersecurity firm, Kitchener, Ontario
We built the comparison first — current structure against two alternatives — and then aligned the reporting calendar with the sector’s own seasonal cycle rather than a generic year-end.
The result — A cybersecurity firm, Kitchener, Ontario
First-year saving of $45,000, with the same benefit recurring. Every position taken is documented and supported in the file.
Reviewed for the 2025 tax year by Udit Gupta, 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.
