6 worked Web Development & Design Agencies 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 web development & design agencies work, not a specific client's file.
Case Study 1 · Sale and succession
Share Sale Restructured, $760,000 Less Tax On Closing — Custom Software Development Shop, Moncton
Client: A custom software development shop · Where: Moncton, New Brunswick · Engagement: 4 weeks, fixed fee
Tax saved on closing$760,000
PriceAs agreed
Post-closing adjustmentsNone
The situation — A custom software development shop, Moncton, New Brunswick
A custom software development shop in Moncton, New Brunswick was preparing to sell. Due diligence surfaced retained cash well above what the business needed to operate. That would have reduced the price or killed the deal outright.
What we did for A custom software development shop, Moncton, New Brunswick
We cleaned up the historical file. We aligned the reporting calendar with the sector’s own seasonal cycle rather than a generic year-end. Then we prepared the due-diligence package the buyer's advisers actually asked for.
The result — A custom software development shop, Moncton, New Brunswick
The deal closed at the agreed price. $760,000 of tax was saved against the structure originally proposed, with no post-closing adjustment.
Case Study 2 · Objection and relief
$84,000 Of Penalties And Interest Cancelled On Relief — Cybersecurity Firm, Surrey
Client: A cybersecurity firm · Where: Surrey, British Columbia · Engagement: 3 weeks, fixed fee
Penalties and interest cancelled$84,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — A cybersecurity firm, Surrey, British Columbia
An assessment of $84,000 landed at a cybersecurity firm in Surrey, British Columbia following a desk review. It turned on a chart of accounts that told the owner nothing about web development & design agencies margin. The auditor had not seen the records behind it.
What we did for A cybersecurity firm, Surrey, British Columbia
We rebuilt the chart of accounts around how a web development & design agencies business actually earns and spends. We then set out the legislative basis for the position alongside the documents supporting it.
The result — A cybersecurity firm, Surrey, British Columbia
$84,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 3 · Cash and remittance control
Remittance Schedule Corrected, $103,000 Refunded — IT Managed-Services Provider, Kelowna
Client: An IT managed-services provider · Where: Kelowna, British Columbia · Engagement: 11 weeks, fixed fee
Overpayment refunded$103,000
Late remittances sinceZero
ScheduleAutomated
The situation — An IT managed-services provider, Kelowna, British Columbia
Remittances at an IT managed-services provider in Kelowna, British Columbia were consistently late by a few days. That was enough to trigger penalties every quarter. Behind it sat industry-specific reporting obligations nobody had flagged.
What we did for An IT managed-services provider, Kelowna, British Columbia
We documented the positions to the standard the CRA applies to this sector specifically. Then we moved the remittance dates into a scheduled process rather than a monthly decision.
The result — An IT managed-services provider, Kelowna, British Columbia
Penalties stopped from the following remittance onwards, and $103,000 of overpaid instalments was refunded.
Case Study 4 · CRA review defended
$67,000 Proposed Adjustment Withdrawn In Full — E-Learning Platform, Saskatoon
The situation — An e-learning platform, Saskatoon, Saskatchewan
An e-learning platform in Saskatoon, Saskatchewan received a proposal letter opening a review of web development & design agencies accounting and tax. The CRA had identified sector deductions claimed on a general-business basis rather than the web development & design agencies rules. It proposed an adjustment of $67,000, with 30 days to respond.
What we did for An e-learning platform, Saskatoon, Saskatchewan
We treated the response as an evidence exercise rather than an argument. We reassigned the asset classes on the CCA schedule and corrected the opening balances. We then indexed every supporting document against the specific line the auditor had questioned.
The result — An e-learning platform, Saskatoon, Saskatchewan
The proposed adjustment was withdrawn in full — all $67,000 of it. The file closed in 11 weeks with no change to the assessed amounts and no penalty.
Case Study 5 · Backlog brought current
$137,000 Of Arbitrary Assessments Vacated After 4 Years — Mobile App Studio, Lethbridge
Client: A mobile app studio · Where: Lethbridge, Alberta · Engagement: 8 weeks, fixed fee
Arbitrary tax vacated$137,000
Years brought current4
Account statusCurrent
The situation — A mobile app studio, Lethbridge, Alberta
4 years of unfiled returns had turned into notional assessments at a mobile app studio in Lethbridge, Alberta. Underneath lay equipment and asset classes assigned by guesswork rather than the CCA schedule. Collections had already started.
What we did for A mobile app studio, Lethbridge, Alberta
We reviewed every sector-specific deduction against the current rules and claimed the ones that had been missed. We then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result — A mobile app studio, Lethbridge, Alberta
All 4 years were accepted as filed. $137,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 4 years.
Case Study 6 · Deadline rescue
3-Week Turnaround Beat The Deadline And Saved $114,000 — Fintech Startup, Burnaby
Client: A fintech startup · Where: Burnaby, British Columbia · Engagement: 3 weeks, fixed fee
Late-filing penalty avoided$114,000
Filed with15 days to spare
Next yearPapers ready
The situation — A fintech startup, Burnaby, British Columbia
A fintech startup in Burnaby, British Columbia was weeks away from the deadline for web development & design agencies accounting and tax. Behind that sat a previous accountant with no experience of this sector. The exposure if the date slipped was around $114,000.
What we did for A fintech startup, Burnaby, 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 — A fintech startup, Burnaby, British Columbia
Filed with 15 days to spare. $114,000 in late-filing penalties avoided, and the working papers are ready for the following year.
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.
