6 worked GST/HST Tax Filing 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 gst/hst tax filing work, not a specific client's file.
Case Study 1 · Planning that cut the bill
$59,000 Cut From The Annual Tax Bill — Wholesale Food Distributor, Kelowna
Client: A wholesale food distributor · Where: Kelowna, British Columbia · Engagement: 4 weeks, fixed fee
First-year saving$59,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation — A wholesale food distributor, Kelowna, British Columbia
A wholesale food distributor in Kelowna, British Columbia was compliant but paying more than it needed to. The prior year had been filed correctly. It still left export sales zero-rated with no shipping documentation behind them on the table.
What we did for A wholesale food distributor, Kelowna, British Columbia
We modelled the current position against the alternatives before changing anything. Then we assembled the export documentation, restored zero-rating on the qualifying sales, and reduced the proposed assessment.
The result — A wholesale food distributor, Kelowna, British Columbia
The change saved $59,000 in the first year and repeats annually. Nothing about the filings became more aggressive. The position is simply the one the rules already allowed.
Case Study 2 · Records and systems rebuilt
21 Months Reconciled And $4,400 Of Input Tax Recovered — Interprovincial Construction Supplier, Vancouver
Client: A construction supplier selling into three provinces · Where: Vancouver, British Columbia · Engagement: 8 weeks, fixed fee
Months reconciled21
Input tax recovered$4,400
Close time6 days
The situation — A construction supplier selling into three provinces, Vancouver, British Columbia
Nothing reconciled at a construction supplier selling into three provinces in Vancouver, British Columbia. Every filing started with 21 months of cleanup. The file was carrying management fees between two related registrants carrying tax that only ever went out and came back.
What we did for A construction supplier selling into three provinces, Vancouver, British Columbia
We rebuilt from source rather than correcting on top of the existing file. We rebuilt the sales ledger by customer province and applied the correct place-of-supply rate to each stream. We filed corrected returns before the CRA opened a review. Then we set the routine that keeps it clean.
The result — A construction supplier selling into three provinces, Vancouver, British Columbia
21 months reconciled to the bank. The close now takes 6 days, and $4,400 of previously unclaimable input tax was recovered in the process.
Case Study 3 · Objection and relief
$45,000 Of Penalties And Interest Cancelled On Relief — Digital Platform Seller, Hamilton
Client: A platform seller collecting tax at checkout · Where: Hamilton, Ontario · Engagement: 3 weeks, fixed fee
Penalties and interest cancelled$45,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — A platform seller collecting tax at checkout, Hamilton, Ontario
An assessment of $45,000 landed at a platform seller collecting tax at checkout in Hamilton, Ontario following a desk review. It turned on nil periods left unfiled, which held up the refund on the one period that mattered. The auditor had not seen the records behind it.
What we did for A platform seller collecting tax at checkout, Hamilton, Ontario
We self-assessed the tax on the real property acquisition in the correct reporting period and claimed the offsetting input tax credit in the same return. We then set out the legislative basis for the position alongside the documents supporting it.
The result — A platform seller collecting tax at checkout, Hamilton, Ontario
$45,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 4 · Backlog brought current
Collections Halted And $110,000 Cut From A 3-Year Backlog — Late GST/HST Registrant, Burnaby
Client: A seller who crossed the registration threshold before registering · Where: Burnaby, British Columbia · Engagement: 3 weeks, fixed fee
Balance reduced by$110,000
Backlog cleared3 years
CollectionsHalted
The situation — A seller who crossed the registration threshold before registering, Burnaby, British Columbia
By the time a seller who crossed the registration threshold before registering in Burnaby, British Columbia called, 3 years were outstanding. The CRA had assessed on estimates. Underneath it sat a registration threshold crossed nine months before anyone registered.
What we did for A seller who crossed the registration threshold before registering, Burnaby, British Columbia
We reconstructed the records year by year. We backdated the registration to the date the business stopped being a small supplier, remitted the tax owing, and applied for relief on the penalty portion. Each filing replaced an arbitrary assessment with a real one.
The result — A seller who crossed the registration threshold before registering, Burnaby, British Columbia
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $110,000, and a relief application addressed part of the accumulated interest.
Case Study 5 · Missed incentive claimed
$26,000 In Credits Claimed That Prior Filings Had Missed — Mixed-Supply Practice, Victoria
Client: A professional practice with exempt and taxable supplies · Where: Victoria, British Columbia · Engagement: 7 weeks, fixed fee
Credits claimed$26,000
Years adjusted4
Review outcomeNo adjustment
The situation — A professional practice with exempt and taxable supplies, Victoria, British Columbia
A professional practice with exempt and taxable supplies in Victoria, British Columbia had been filing for 4 years. In that time, the incentives its activity qualified for were never claimed. Behind that sat HST charged at the home-province rate on sales into four different provinces.
What we did for A professional practice with exempt and taxable supplies, Victoria, British Columbia
We tested each activity against the eligibility criteria rather than the description on the invoice. Then we brought the nil and missing periods current so the account was clean before the refund claim was filed.
The result — A professional practice with exempt and taxable supplies, Victoria, British Columbia
$26,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 6 · Scaling without breaking
Second-Province Expansion Handled, $94,000 Of Cash Released — Freight Brokerage, Guelph
The situation — A freight brokerage, Guelph, Ontario
Revenue at a freight brokerage in Guelph, Ontario was up sharply and cash was tighter than ever. Underneath it sat a commercial property purchase closed on the assumption no tax applied because the vendor was not registered.
What we did for A freight brokerage, Guelph, Ontario
We set a defensible input tax credit allocation between taxable and exempt supplies and documented the method for future filings. Every new obligation was set up before it was triggered, not after. That covered registration, remittance frequency and provincial filing.
The result — A freight brokerage, Guelph, Ontario
$94,000 of cash was released from the working capital cycle. The expansion completed with every registration and filing obligation covered from day one.
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.
