6 worked Castlegar 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 Castlegar and its provincial tax regime, not a specific client's file.
Case Study 1 · Records and systems rebuilt
Books Rebuilt From Source, $18,500 In Unclaimed Input Tax Found — Two-Unit Short-Term Rental Operator, Castlegar
Client: A two-unit short-term rental operator · Where: Castlegar, British Columbia · Engagement: 3 weeks, fixed fee
Unclaimed tax found$18,500
Records rebuilt12 months
ProcessDocumented
The situation — A two-unit short-term rental operator, Castlegar, British Columbia
A two-unit short-term rental operator in Castlegar, British Columbia could not answer basic questions about its own numbers. Provincial sales tax collected but never remitted on the separate BC return sat between the bank statements and the ledger.
What we did for A two-unit short-term rental operator, Castlegar, British Columbia
We recalculated the corporate tax at the 11% combined small business rate and rebased the instalments on the current year. We then documented the process so the work does not depend on any one person remembering how it was done.
The result — A two-unit short-term rental operator, Castlegar, British Columbia
Records rebuilt and reconciled, $18,500 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Client: A cybersecurity firm · Where: Castlegar, British Columbia · Engagement: 9 weeks, fixed fee
Overpayment refunded$115,000
Late remittances sinceZero
ScheduleAutomated
The situation — A cybersecurity firm, Castlegar, British Columbia
Remittances at a cybersecurity firm in Castlegar, British Columbia were consistently late by a few days. That was enough to trigger penalties every quarter. Behind it sat input tax credits claimed against BC provincial tax, which is not recoverable the way GST is.
What we did for A cybersecurity firm, Castlegar, British Columbia
We registered the provincial payroll account, caught up the outstanding remittances, and applied for relief on the penalty. Then we moved the remittance dates into a scheduled process rather than a monthly decision.
The result — A cybersecurity firm, Castlegar, British Columbia
Penalties stopped from the following remittance onwards, and $115,000 of overpaid instalments was refunded.
Case Study 3 · Planning that cut the bill
$55,000 Saved By Correcting What Prior Filings Had Missed — IT Managed-Services Provider, Castlegar
Client: An IT managed-services provider · Where: Castlegar, British Columbia · Engagement: 7 weeks, fixed fee
Saving identified$55,000
RecurringYes
Positions documentedAll
The situation — An IT managed-services provider, Castlegar, British Columbia
An IT managed-services provider in Castlegar, British Columbia asked for a second opinion on its BC tax and accounting file. That followed three years of rising tax. The review found a provincial payroll levy that had never been registered for or remitted.
What we did for An IT managed-services provider, Castlegar, British Columbia
We built the comparison first: current structure against two alternatives. Then we assessed and claimed BC Small Business Venture Capital Tax Credit alongside the federal return.
The result — An IT managed-services provider, Castlegar, British Columbia
First-year saving of $55,000, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 4 · Scaling without breaking
Growth Handled Without A Missed Filing, $82,000 Freed — Mortgage Brokerage, Castlegar
Client: A mortgage brokerage · Where: Castlegar, British Columbia · Engagement: 10 weeks, fixed fee
Cash freed$82,000
Compliance failuresNone
ReportingMonthly
The situation — A mortgage brokerage, Castlegar, British Columbia
A mortgage brokerage in Castlegar, British Columbia was opening in a second province. That meant different filing obligations and a different payroll regime. Sector-specific exposure the previous accountant had not seen before already sat in the file.
What we did for A mortgage brokerage, Castlegar, British Columbia
We assessed and claimed BC Scientific Research and Experimental Development Tax Credit alongside the federal return. We then put monthly reporting in place. That let the owner see the cash effect of growth while there was still time to act on it.
The result — A mortgage brokerage, Castlegar, British Columbia
Growth was absorbed without a compliance failure. $82,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 5 · CRA review defended
$40,000 Proposed Adjustment Withdrawn In Full — Short-Term Rental Operator, Castlegar
Client: A short-term rental operator · Where: Castlegar, British Columbia · Engagement: 10 weeks, fixed fee
Adjustment withdrawn$40,000
File closed in10 weeks
Penalties assessedNone
The situation — A short-term rental operator, Castlegar, British Columbia
A short-term rental operator in Castlegar, British Columbia received a proposal letter opening a review of its BC tax and accounting file. The CRA had identified instalments still calculated on a year the business had long outgrown. It proposed an adjustment of $40,000, with 30 days to respond.
What we did for A short-term rental operator, Castlegar, British Columbia
We treated the response as an evidence exercise rather than an argument. We separated the federal GST and BC provincial sales tax streams, reconciled both to the sales ledger, and filed the corrected provincial returns. We then indexed every supporting document against the specific line the auditor had questioned.
The result — A short-term rental operator, Castlegar, British Columbia
The proposed adjustment was withdrawn in full — all $40,000 of it. The file closed in 10 weeks with no change to the assessed amounts and no penalty.
Case Study 6 · Missed incentive claimed
$72,000 In Credits Claimed That Prior Filings Had Missed — Residential Rental Portfolio, Castlegar
Client: A residential rental portfolio · Where: Castlegar, British Columbia · Engagement: 5 weeks, fixed fee
Credits claimed$72,000
Years adjusted5
Review outcomeNo adjustment
The situation — A residential rental portfolio, Castlegar, British Columbia
A residential rental portfolio in Castlegar, British Columbia had been filing for 5 years. In that time, the incentives its activity qualified for were never claimed. Behind that sat British Columbia incentives claimed by competitors and never by this business.
What we did for A residential rental portfolio, Castlegar, British Columbia
We tested each activity against the eligibility criteria rather than the description on the invoice. Then we recalculated the corporate tax at the 11% combined small business rate and rebased the instalments on the current year.
The result — A residential rental portfolio, Castlegar, British Columbia
$72,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
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.
