6 worked Back-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 back-tax filing work, not a specific client's file.
Case Study 1 · Objection and relief
$12,500 Of Penalties And Interest Cancelled On Relief — Voluntary Disclosure Applicant, Victoria
Client: A business owner considering a voluntary disclosure · Where: Victoria, British Columbia · Engagement: 5 weeks, fixed fee
Penalties and interest cancelled$12,500
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — A business owner considering a voluntary disclosure, Victoria, British Columbia
An assessment of $12,500 landed at a business owner considering a voluntary disclosure in Victoria, British Columbia following a desk review. It turned on a confirmation letter left in a drawer until the appeal window had closed. The auditor had not seen the records behind it.
What we did for A business owner considering a voluntary disclosure, Victoria, British Columbia
We requested the auditor’s working papers and report to see how the assessment had been built before answering any of it. We then set out the legislative basis for the position alongside the documents supporting it.
The result — A business owner considering a voluntary disclosure, Victoria, British Columbia
$12,500 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 2 · Backlog brought current
5 Years Filed, $74,000 Removed From The Assessed Balance — Importer Under Audit, Regina
Client: An importer under a customs and GST audit · Where: Regina, Saskatchewan · Engagement: 5 weeks, fixed fee
Years filed5
Assessed balance removed$74,000
CollectionsStopped
The situation — An importer under a customs and GST audit, Regina, Saskatchewan
An importer under a customs and GST audit in Regina, Saskatchewan had not filed for 5 years. The CRA had issued arbitrary assessments. The business was carrying a net-worth assessment built on unexplained deposits that were actually loan proceeds. That came on top of a growing interest balance.
What we did for An importer under a customs and GST audit, Regina, Saskatchewan
We started with the oldest year and worked forward so each year's closing balances fed the next. We answered each query in writing with an indexed document package, so the file showed exactly what the auditor had received and on what date. We filed the years in sequence rather than all at once.
The result — An importer under a customs and GST audit, Regina, Saskatchewan
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $74,000 of the estimated balance came off, with a payment arrangement covering the rest.
Case Study 3 · Missed incentive claimed
Incentive Review Recovered $107,000 Across 3 Open Years — Taxpayer Facing Collections, London
Client: A taxpayer with frozen bank accounts · Where: London, Ontario · Engagement: 5 weeks, fixed fee
Recovered$107,000
Open years claimed3
Ongoing trackingIn place
The situation — A taxpayer with frozen bank accounts, London, Ontario
An incentive review at a taxpayer with frozen bank accounts in London, Ontario started from a simple question: what has never been claimed? The answer ran to 3 years. It was driven by six years of unfiled corporate and personal returns and an active collections file.
What we did for A taxpayer with frozen bank accounts, London, Ontario
We brought every outstanding return current, then negotiated a payment arrangement that stopped the collections action. We documented eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result — A taxpayer with frozen bank accounts, London, Ontario
The credits produced $107,000 across the open years. The tracking now in place means the following year's claim is documented as the work happens rather than reconstructed afterwards.
Case Study 4 · Scaling without breaking
Second-Province Expansion Handled, $117,000 Of Cash Released — Professional Under Lifestyle Audit, Surrey
Client: A professional under a lifestyle audit · Where: Surrey, British Columbia · Engagement: 3 weeks, fixed fee
Cash released$117,000
New registrationsComplete on day one
Compliance gapsNone
The situation — A professional under a lifestyle audit, Surrey, British Columbia
Revenue at a professional under a lifestyle audit in Surrey, British Columbia was up sharply and cash was tighter than ever. Underneath it sat a proposal letter with a 30-day response window and no supporting records assembled.
What we did for A professional under a lifestyle audit, Surrey, British Columbia
We filed the Tax Court appeal inside the window and resolved the remaining adjustments before a hearing date was needed. Every new obligation was set up before it was triggered, not after. That covered registration, remittance frequency and provincial filing.
The result — A professional under a lifestyle audit, Surrey, British Columbia
$117,000 of cash was released from the working capital cycle. The expansion completed with every registration and filing obligation covered from day one.
Case Study 5 · Cash and remittance control
$28,500 Of Working Capital Freed From The Tax Cycle — Corporation Under GST/HST Review, Ottawa
Client: A corporation under a GST/HST review · Where: Ottawa, Ontario · Engagement: 6 weeks, fixed fee
Working capital freed$28,500
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation — A corporation under a GST/HST review, Ottawa, Ontario
A corporation under a GST/HST review in Ottawa, Ontario was profitable on paper and short of cash every month. A director liability assessment for a corporation that had already stopped operating explained most of the gap.
What we did for A corporation under a GST/HST review, Ottawa, Ontario
We filed the disclosure through the Voluntary Disclosures Program before contact, which removed the gross-negligence penalty entirely. We also built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result — A corporation under a GST/HST review, Ottawa, Ontario
$28,500 was released back into working capital. Remittances have been on time every period since, and the forecast shows the tax outflow before it lands.
Case Study 6 · Deadline rescue
11-Week Turnaround Beat The Deadline And Saved $35,500 — Contractor Facing Reassessment, Vancouver
Client: A contractor facing a proposed reassessment · Where: Vancouver, British Columbia · Engagement: 11 weeks, fixed fee
Late-filing penalty avoided$35,500
Filed with9 days to spare
Next yearPapers ready
The situation — A contractor facing a proposed reassessment, Vancouver, British Columbia
A contractor facing a proposed reassessment in Vancouver, British Columbia was weeks away from the deadline for back-tax filing. Behind that sat an audit conducted over the phone, with nothing on file showing what had been provided or when. The exposure if the date slipped was around $35,500.
What we did for A contractor facing a proposed reassessment, Vancouver, British Columbia
We assembled the contemporaneous records, filed a structured response to each proposed adjustment with the supporting documents indexed, and had the proposal withdrawn. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — A contractor facing a proposed reassessment, Vancouver, British Columbia
Filed with 9 days to spare. $35,500 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.
