6 worked Commodity Tax Advisory 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 commodity tax advisory work, not a specific client's file.
Case Study 1 · Deadline rescue
$143,000 Late-Filing Penalty Cancelled On Relief Application — Late GST/HST Registrant, Brampton
Client: A seller who crossed the registration threshold before registering · Where: Brampton, Ontario · Engagement: 4 weeks, fixed fee
Penalty cancelled$143,000
Relief applicationGranted
ReturnAccepted as filed
The situation — A seller who crossed the registration threshold before registering, Brampton, Ontario
A seller who crossed the registration threshold before registering in Brampton, Ontario had already missed one deadline and was about to miss a second. Behind it sat export sales zero-rated with no shipping documentation behind them, and a penalty of $143,000 was accruing.
What we did for A seller who crossed the registration threshold before registering, Brampton, Ontario
We split the work into what had to happen before the deadline and what could follow it, then assembled the export documentation, restored zero-rating on the qualifying sales, and reduced the proposed assessment.
The result — A seller who crossed the registration threshold before registering, Brampton, Ontario
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $143,000 of the penalty already assessed on the earlier year.
Case Study 2 · Planning that cut the bill
$26,000 Saved By Correcting What Prior Filings Had Missed — Digital Platform Seller, Hamilton
Client: A platform seller collecting tax at checkout · Where: Hamilton, Ontario · Engagement: 7 weeks, fixed fee
Saving identified$26,000
RecurringYes
Positions documentedAll
The situation — A platform seller collecting tax at checkout, Hamilton, Ontario
A platform seller collecting tax at checkout in Hamilton, Ontario asked for a second opinion on commodity tax advisory after three years of rising tax. The review found a commercial property purchase closed on the assumption no tax applied because the vendor was not registered.
What we did for A platform seller collecting tax at checkout, Hamilton, Ontario
We built the comparison first — current structure against two alternatives — and then rebuilt the sales ledger by customer province, applied the correct place-of-supply rate to each stream, and filed corrected returns before the CRA opened a review.
The result — A platform seller collecting tax at checkout, Hamilton, Ontario
First-year saving of $26,000, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 3 · Missed incentive claimed
Incentive Review Recovered $116,000 Across 7 Open Years — Interprovincial Construction Supplier, Calgary
Client: A construction supplier selling into three provinces · Where: Calgary, Alberta · Engagement: 9 weeks, fixed fee
Recovered$116,000
Open years claimed7
Ongoing trackingIn place
The situation — A construction supplier selling into three provinces, Calgary, Alberta
An incentive review at a construction supplier selling into three provinces in Calgary, Alberta started from a simple question: what has never been claimed? The answer ran to 7 years, driven by 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, Calgary, Alberta
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, documenting eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result — A construction supplier selling into three provinces, Calgary, Alberta
The credits produced $116,000 across the open years, and the tracking now in place means the following year's claim is documented as the work happens rather than reconstructed afterwards.
Client: A wholesale food distributor · Where: Moncton, New Brunswick · Engagement: 7 weeks, fixed fee
Annual saving$60,000
ReorganisationTax-neutral
StructureMatches operations
The situation — A wholesale food distributor, Moncton, New Brunswick
A wholesale food distributor in Moncton, New Brunswick was carrying a sales tax account filed annually while the CRA had moved the business to quarterly, and every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did for A wholesale food distributor, Moncton, New Brunswick
Working with the client's lawyer, we set a defensible input tax credit allocation between taxable and exempt supplies and documented the method for future filings and prepared the elections, resolutions and valuations the structure needed to stand up.
The result — A wholesale food distributor, Moncton, New Brunswick
The structure now matches the business. Annual saving of $60,000, and the reorganisation itself was tax-neutral.
Case Study 5 · Records and systems rebuilt
19 Months Reconciled And $4,300 Of Input Tax Recovered — Used-Equipment Dealer, Regina
The situation — A used-equipment dealer, Regina, Saskatchewan
A used-equipment dealer in Regina, Saskatchewan was carrying nil periods left unfiled, which held up the refund on the one period that mattered. Nothing reconciled, and every filing started with 19 months of cleanup.
What we did for A used-equipment dealer, Regina, Saskatchewan
We rebuilt from source rather than correcting on top of the existing file. We tested the quick method against the account’s actual input tax credit history and stayed on the regular method where the credits were worth more, then set the routine that keeps it clean.
The result — A used-equipment dealer, Regina, Saskatchewan
19 months reconciled to the bank. The close now takes 6 days, and $4,300 of previously unclaimable input tax was recovered in the process.
Case Study 6 · Scaling without breaking
Second-Province Expansion Handled, $90,000 Of Cash Released — Freight Brokerage, Surrey
Client: A freight brokerage · Where: Surrey, British Columbia · Engagement: 6 weeks, fixed fee
Cash released$90,000
New registrationsComplete on day one
Compliance gapsNone
The situation — A freight brokerage, Surrey, British Columbia
Revenue at a freight brokerage in Surrey, British Columbia was up sharply and cash was tighter than ever. Underneath it sat input tax credits claimed on the exempt side of a mixed-supply business.
What we did for A freight brokerage, Surrey, British Columbia
We filed the section 156 election for the related registrants, so supplies between them stopped carrying tax that served no purpose but cash-flow drag. Every new obligation — registration, remittance frequency, provincial filing — was set up before it was triggered, not after.
The result — A freight brokerage, Surrey, British Columbia
$90,000 of cash was released from the working capital cycle, and the expansion completed with every registration and filing obligation covered from day one.
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.
