A Winnipeg business was assessed Manitoba retail sales tax on sales that were actually exempt. We proved the exemptions and cut the assessment.
Manitoba applies its own retail sales tax alongside the federal GST, and the province assessed this client on a block of sales its records did not clearly support as exempt. We reconstructed the sales documentation, matched exemption certificates to the transactions, and separated out-of-province sales that were never subject to Manitoba RST. Most of the assessment was reversed once the supporting records were produced.
Manufacturing turns on inventory valuation, capital cost allowance on production equipment and the split between M&P and other income.
A review is won on documentation created at the time, not on explanations offered afterwards. The CRA asks for the source records behind a figure, and an unsupported claim is simply disallowed.
Why it bites: Most reassessments we reverse are not the result of a wrong position — they are the result of a correct position with no contemporaneous paper trail behind it.
Every engagement above was priced as a fixed fee agreed before the work started, and paid only once the client had reviewed the result. If any of this looks like your situation, the first step is a free 15-minute call — we will tell you plainly whether there is anything worth doing.
Reviewed by Udit Gupta, Founder and Tax Accountant for the 2025 tax year. This case study is based on a real client engagement handled by Tax Filings Canada; the client's name and identifying details have been changed. Outcomes depend on your own facts.
Sources. CRA — Businesses · Income Tax Act (Justice Laws Website)
