6 worked Business Expense Audit Support 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 business expense audit support work, not a specific client's file.
Case Study 1 · Structure rebuilt
Corporate Structure Rebuilt For $51,000 Of Annual Savings — Voluntary Disclosure Applicant, Victoria
Client: A business owner considering a voluntary disclosure · Where: Victoria, British Columbia · Engagement: 9 weeks, fixed fee
Saving per year$51,000
DocumentationComplete
Transfer basisRollover
The situation — A business owner considering a voluntary disclosure, Victoria, British Columbia
The structure at a business owner considering a voluntary disclosure in Victoria, British Columbia dated from years earlier. It had been set up for a business that no longer existed. A confirmation letter left in a drawer until the appeal window had closed had become expensive.
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. The reorganisation used the rollover provisions rather than a taxable transfer, so no tax fell due on the restructuring itself.
The result — A business owner considering a voluntary disclosure, Victoria, British Columbia
$51,000 of annual saving, achieved on a tax-deferred basis. The minute book, elections and valuations are all in the file.
Case Study 2 · Planning that cut the bill
$38,500 Cut From The Annual Tax Bill — Late-Objection Taxpayer, Brampton
Client: A taxpayer whose objection window has closed · Where: Brampton, Ontario · Engagement: 10 weeks, fixed fee
First-year saving$38,500
RepeatsAnnually
Filing positionUnchanged in risk
The situation — A taxpayer whose objection window has closed, Brampton, Ontario
A taxpayer whose objection window has closed in Brampton, Ontario was compliant but paying more than it needed to. The prior year had been filed correctly. It still left a net-worth assessment built on unexplained deposits that were actually loan proceeds on the table.
What we did for A taxpayer whose objection window has closed, Brampton, Ontario
We modelled the current position against the alternatives before changing anything. Then 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.
The result — A taxpayer whose objection window has closed, Brampton, Ontario
The change saved $38,500 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 3 · Backlog brought current
4 Years Filed, $117,000 Removed From The Assessed Balance — Importer Under Audit, Halifax
Client: An importer under a customs and GST audit · Where: Halifax, Nova Scotia · Engagement: 4 weeks, fixed fee
Years filed4
Assessed balance removed$117,000
CollectionsStopped
The situation — An importer under a customs and GST audit, Halifax, Nova Scotia
An importer under a customs and GST audit in Halifax, Nova Scotia had not filed for 4 years. The CRA had issued arbitrary assessments. The business was carrying a waiver signed at the counter that kept an otherwise closed year open with no end date. That came on top of a growing interest balance.
What we did for An importer under a customs and GST audit, Halifax, Nova Scotia
We started with the oldest year and worked forward so each year's closing balances fed the next. We brought every outstanding return current, then negotiated a payment arrangement that stopped the collections action. We filed the years in sequence rather than all at once.
The result — An importer under a customs and GST audit, Halifax, Nova Scotia
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $117,000 of the estimated balance came off, with a payment arrangement covering the rest.
Case Study 4 · Cash and remittance control
$46,000 Of Working Capital Freed From The Tax Cycle — Family Business Under Review, Ottawa
Client: A family business under a related-party review · Where: Ottawa, Ontario · Engagement: 10 weeks, fixed fee
Working capital freed$46,000
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation — A family business under a related-party review, Ottawa, Ontario
A family business under a related-party review in Ottawa, Ontario was profitable on paper and short of cash every month. A proposal letter with a 30-day response window and no supporting records assembled explained most of the gap.
What we did for A family business under a related-party review, Ottawa, Ontario
We filed the Tax Court appeal inside the window and resolved the remaining adjustments before a hearing date was needed. We also built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result — A family business under a related-party review, Ottawa, Ontario
$46,000 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 5 · Sale and succession
Share Sale Restructured, $390,000 Less Tax On Closing — Taxpayer Facing Collections, Calgary
Client: A taxpayer with frozen bank accounts · Where: Calgary, Alberta · Engagement: 10 weeks, fixed fee
Tax saved on closing$390,000
PriceAs agreed
Post-closing adjustmentsNone
The situation — A taxpayer with frozen bank accounts, Calgary, Alberta
A taxpayer with frozen bank accounts in Calgary, Alberta was preparing to sell. Due diligence surfaced no valuation on file to support the price the parties had agreed. That would have reduced the price or killed the deal outright.
What we did for A taxpayer with frozen bank accounts, Calgary, Alberta
We cleaned up the historical file. We filed the disclosure through the Voluntary Disclosures Program before contact, which removed the gross-negligence penalty entirely. Then we prepared the due-diligence package the buyer's advisers actually asked for.
The result — A taxpayer with frozen bank accounts, Calgary, Alberta
The deal closed at the agreed price. $390,000 of tax was saved against the structure originally proposed, with no post-closing adjustment.
Case Study 6 · Records and systems rebuilt
28 Months Reconciled And $15,500 Of Input Tax Recovered — Employer Under Payroll Review, Kelowna
Client: A company facing a payroll trust examination · Where: Kelowna, British Columbia · Engagement: 7 weeks, fixed fee
Months reconciled28
Input tax recovered$15,500
Close time7 days
The situation — A company facing a payroll trust examination, Kelowna, British Columbia
Nothing reconciled at a company facing a payroll trust examination in Kelowna, British Columbia. Every filing started with 28 months of cleanup. The file was carrying an audit conducted over the phone, with nothing on file showing what had been provided or when.
What we did for A company facing a payroll trust examination, Kelowna, British Columbia
We rebuilt from source rather than correcting on top of the existing file. We assembled the contemporaneous records, filed a structured response to each proposed adjustment with the supporting documents indexed, and had the proposal withdrawn. Then we set the routine that keeps it clean.
The result — A company facing a payroll trust examination, Kelowna, British Columbia
28 months reconciled to the bank. The close now takes 7 days, and $15,500 of previously unclaimable input tax was recovered in the process.
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.
