6 Contractor Payment Setup tax and accounting engagements in full — what the client came to us with, what we did, and what it was worth. Each one is specific to contractor payment setup work, not a general example.
Case Study 1 · Backlog brought current
$115,000 Of Arbitrary Assessments Vacated After 4 Years — 30-Employee Manufacturer, Vancouver
Client: A 30-employee manufacturer · Where: Vancouver, British Columbia · Engagement: 9 weeks, fixed fee
Arbitrary tax vacated$115,000
Years brought current4
Account statusCurrent
The situation
4 years of unfiled returns had turned into notional assessments at a 30-employee manufacturer in Vancouver, British Columbia, with long-term contractors who met every test for employment underneath. Collections had already started.
What we did
We moved the account to the correct remitter frequency, caught up the arrears, and filed a taxpayer relief request that cancelled the bulk of the penalty, then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result
All 4 years were accepted as filed. $115,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 4 years.
Case Study 2 · CRA review defended
$17,000 Proposed Adjustment Withdrawn In Full — Security Services Contractor, Moncton
Client: A security services contractor · Where: Moncton, New Brunswick · Engagement: 8 weeks, fixed fee
Adjustment withdrawn$17,000
File closed in8 weeks
Penalties assessedNone
The situation
A security services contractor in Moncton, New Brunswick received a proposal letter opening a review of contractor payment setup. The CRA had identified company vehicles used personally with no logbook and no taxable benefit reported and proposed an adjustment of $17,000, with 30 days to respond.
What we did
We treated the response as an evidence exercise rather than an argument. We reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips, then indexed every supporting document against the specific line the auditor had questioned.
The result
The proposed adjustment was withdrawn in full — all $17,000 of it. The file closed in 8 weeks with no change to the assessed amounts and no penalty.
Case Study 3 · Cash and remittance control
$15,000 Of Working Capital Freed From The Tax Cycle — Home-Care Agency, Burnaby
Client: A home-care agency · Where: Burnaby, British Columbia · Engagement: 10 weeks, fixed fee
Working capital freed$15,000
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation
A home-care agency in Burnaby, British Columbia was profitable on paper and short of cash every month. T4s that did not agree to the payroll register or the general ledger explained most of the gap.
What we did
We reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s and built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result
$15,000 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 4 · Objection and relief
$46,000 Of Penalties And Interest Cancelled On Relief — Dental Practice, Ottawa
Client: A dental practice · Where: Ottawa, Ontario · Engagement: 11 weeks, fixed fee
Penalties and interest cancelled$46,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation
An assessment of $46,000 landed at a dental practice in Ottawa, Ontario following a desk review. The auditor had not seen the records behind a director facing a personal assessment for unremitted source deductions.
What we did
We reviewed each contractor against the CRA’s control and integration tests, converted those who met the employment tests, and priced the transition before it was forced by a ruling, then set out the legislative basis for the position alongside the documents supporting it.
The result
$46,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 5 · Sale and succession
$235,000 Sheltered By The Lifetime Capital Gains Exemption — Retail Chain Across Two, Guelph
Client: A retail chain across two provinces · Where: Guelph, Ontario · Engagement: 4 weeks, fixed fee
Gain sheltered$235,000
ClosingOn schedule
Share qualificationMet
The situation
A retail chain across two provinces in Guelph, Ontario had an offer on the table and 24 months to close. The shares did not qualify for the capital gains exemption, and passive assets sitting inside the operating company, disqualifying the shares was part of the reason.
What we did
We purified the corporation so the shares met the qualifying tests, then moved the account to the correct remitter frequency, caught up the arrears, and filed a taxpayer relief request that cancelled the bulk of the penalty well ahead of the closing date.
The result
The sale closed on schedule with $235,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 6 · Scaling without breaking
Growth Handled Without A Missed Filing, $142,000 Freed — Restaurant with Heavy Seasonal, Kitchener
Client: A restaurant with heavy seasonal turnover · Where: Kitchener, Ontario · Engagement: 3 weeks, fixed fee
Cash freed$142,000
Compliance failuresNone
ReportingMonthly
The situation
A restaurant with heavy seasonal turnover in Kitchener, Ontario was opening in a second province — different filing obligations, a different payroll regime, and long-term contractors who met every test for employment already in the file.
What we did
We reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips and put monthly reporting in place so the owner could see the cash effect of growth while there was still time to act on it.
The result
Growth was absorbed without a compliance failure. $142,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Reviewed for the 2025 tax year by Udit Gupta, Certified Tax Accountant. Figures describe representative engagements of this type; outcomes depend on your own facts. Client names and identifying details are omitted for confidentiality.
