6 worked Kelowna 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 Kelowna and its provincial tax regime, not a specific client's file.
Case Study 1 · Deadline rescue
$29,000 Late-Filing Penalty Cancelled On Relief Application — Digital Product Agency, Kelowna
Client: A digital product agency · Where: Kelowna, British Columbia · Engagement: 4 weeks, fixed fee
Penalty cancelled$29,000
Relief applicationGranted
ReturnAccepted as filed
The situation — A digital product agency, Kelowna, British Columbia
A digital product agency in Kelowna, British Columbia had already missed one deadline and was about to miss a second. Behind it sat input tax credits claimed against BC provincial tax, which is not recoverable the way GST is, and a penalty of $29,000 was accruing.
What we did for A digital product agency, Kelowna, British Columbia
We split the work into what had to happen before the deadline and what could follow it, then registered the provincial payroll account, caught up the outstanding remittances, and applied for relief on the penalty.
The result — A digital product agency, Kelowna, British Columbia
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $29,000 of the penalty already assessed on the earlier year.
Case Study 2 · Scaling without breaking
Growth Handled Without A Missed Filing, $138,000 Freed — Gallery and Art Dealer, Kelowna
Client: A gallery and art dealer · Where: Kelowna, British Columbia · Engagement: 9 weeks, fixed fee
Cash freed$138,000
Compliance failuresNone
ReportingMonthly
The situation — A gallery and art dealer, Kelowna, British Columbia
A gallery and art dealer in Kelowna, British Columbia was opening in a second province — different filing obligations, a different payroll regime, and provincial sales tax collected but never remitted on the separate BC return already in the file.
What we did for A gallery and art dealer, Kelowna, British Columbia
We recalculated the corporate tax at the 11% combined small business rate and rebased the instalments on the current year 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 gallery and art dealer, Kelowna, British Columbia
Growth was absorbed without a compliance failure. $138,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 3 · Backlog brought current
$119,000 Of Arbitrary Assessments Vacated After 3 Years — Owner-Occupied Bed and Breakfast, Kelowna
Client: An owner-occupied bed and breakfast with three guest rooms · Where: Kelowna, British Columbia · Engagement: 8 weeks, fixed fee
Arbitrary tax vacated$119,000
Years brought current3
Account statusCurrent
The situation — An owner-occupied bed and breakfast with three guest rooms, Kelowna, British Columbia
3 years of unfiled returns had turned into notional assessments at an owner-occupied bed and breakfast with three guest rooms in Kelowna, British Columbia, with instalments still calculated on a year the business had long outgrown underneath. Collections had already started.
What we did for An owner-occupied bed and breakfast with three guest rooms, Kelowna, British Columbia
We separated the federal GST and BC provincial sales tax streams, reconciled both to the sales ledger, and filed the corrected provincial returns, then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result — An owner-occupied bed and breakfast with three guest rooms, Kelowna, British Columbia
All 3 years were accepted as filed. $119,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 3 years.
Case Study 4 · Records and systems rebuilt
Month-End Close Cut From 9 Weeks To 9 Days — Mortgage Brokerage, Kelowna
Client: A mortgage brokerage · Where: Kelowna, British Columbia · Engagement: 9 weeks, fixed fee
Close time before9 weeks
Close time after9 days
Year-endReview, not rebuild
The situation — A mortgage brokerage, Kelowna, British Columbia
The accounting file at a mortgage brokerage in Kelowna, British Columbia was built on sector-specific exposure the previous accountant had not seen before. The year-end had taken 9 weeks each of the last three years.
What we did for A mortgage brokerage, Kelowna, British Columbia
We assessed and claimed BC Scientific Research and Experimental Development Tax Credit alongside the federal return and moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result — A mortgage brokerage, Kelowna, British Columbia
The file reconciles. Month-end closes in 9 days instead of 9 weeks, and the year-end is a review rather than a reconstruction.
Case Study 5 · CRA review defended
Audit Defence Closed In 4 Weeks, $55,000 Cleared — Bakery and Cafe, Kelowna
Client: A bakery and cafe · Where: Kelowna, British Columbia · Engagement: 4 weeks, fixed fee
Proposed tax cleared$55,000
Review duration4 weeks
OutcomeNo change
The situation — A bakery and cafe, Kelowna, British Columbia
A bakery and cafe in Kelowna, British Columbia was selected for review after a provincial payroll levy that had never been registered for or remitted showed up in the CRA's automated matching. The proposed adjustment on its bc tax and accounting file came to $55,000.
What we did for A bakery and cafe, Kelowna, British Columbia
We assessed and claimed BC Small Business Venture Capital Tax Credit alongside the federal return. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result — A bakery and cafe, Kelowna, British Columbia
The review closed with no change. $55,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 6 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $65,000 Saved Each Year — Fintech Startup, Kelowna
Client: A fintech startup · Where: Kelowna, British Columbia · Engagement: 11 weeks, fixed fee
Annual saving$65,000
Tax on reorganisationDeferred
Elections filedOn time
The situation — A fintech startup, Kelowna, British Columbia
A fintech startup in Kelowna, British Columbia had outgrown the structure it started with. Input tax credits claimed against BC provincial tax, which is not recoverable the way GST is was the immediate problem; the longer-term one was that the structure blocked the next step.
What we did for A fintech startup, Kelowna, British Columbia
We mapped the current structure, modelled the target, and registered the provincial payroll account, caught up the outstanding remittances, and applied for relief on the penalty — with the tax-deferred elections filed on time and the supporting valuations documented.
The result — A fintech startup, Kelowna, British Columbia
The reorganisation completed without triggering tax, and the new structure saves approximately $65,000 a year while removing the exposure the old one carried.
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.
