6 worked CRA Audit Bookkeeping Cleanup 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 cra audit bookkeeping cleanup work, not a specific client's file.
Case Study 1 · Missed incentive claimed
$49,000 Credit Claim Filed And Accepted Without Adjustment — Employer Under Payroll Review, Toronto
Client: A company facing a payroll trust examination · Where: Toronto, Ontario · Engagement: 3 weeks, fixed fee
Claim value$49,000
AcceptedWithout adjustment
RepeatableAnnually
The situation — A company facing a payroll trust examination, Toronto, Ontario
A company facing a payroll trust examination in Toronto, Ontario assumed the credits did not apply to a business its size. A net-worth assessment built on unexplained deposits that were actually loan proceeds meant they had applied all along.
What we did for A company facing a payroll trust examination, Toronto, Ontario
We identified the qualifying activity and built the documentation to support it. Then we filed the Tax Court appeal inside the window and resolved the remaining adjustments before a hearing date was needed.
The result — A company facing a payroll trust examination, Toronto, Ontario
$49,000 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
Case Study 2 · Backlog brought current
$61,000 Of Arbitrary Assessments Vacated After 5 Years — Corporation Under GST/HST Review, Calgary
Client: A corporation under a GST/HST review · Where: Calgary, Alberta · Engagement: 9 weeks, fixed fee
Arbitrary tax vacated$61,000
Years brought current5
Account statusCurrent
The situation — A corporation under a GST/HST review, Calgary, Alberta
5 years of unfiled returns had turned into notional assessments at a corporation under a GST/HST review in Calgary, Alberta. Underneath lay a director liability assessment for a corporation that had already stopped operating. Collections had already started.
What we did for A corporation under a GST/HST review, Calgary, Alberta
We kept the waiver narrowed to the issue actually under review and let the remaining years close on the normal reassessment period. We then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result — A corporation under a GST/HST review, Calgary, Alberta
All 5 years were accepted as filed. $61,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 5 years.
Case Study 3 · Objection and relief
Desk-Review Assessment Of $130,000 Vacated — Restaurant Under Net-Worth Audit, Vancouver
Client: A restaurant under a net-worth audit · Where: Vancouver, British Columbia · Engagement: 6 weeks, fixed fee
Assessment vacated$130,000
Supporting recordsNow on file
AccountCleared
The situation — A restaurant under a net-worth audit, Vancouver, British Columbia
A restaurant under a net-worth audit in Vancouver, British Columbia was carrying $130,000 of penalties and interest. The charges arose from a proposal letter with a 30-day response window and no supporting records assembled. Much of that amount accumulated during a period the CRA itself had delayed.
What we did for A restaurant under a net-worth audit, Vancouver, British Columbia
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 framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result — A restaurant under a net-worth audit, Vancouver, British Columbia
The assessment was vacated. $130,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Case Study 4 · Records and systems rebuilt
Books Rebuilt From Source, $6,300 In Unclaimed Input Tax Found — Voluntary Disclosure Applicant, Mississauga
Client: A business owner considering a voluntary disclosure · Where: Mississauga, Ontario · Engagement: 4 weeks, fixed fee
Unclaimed tax found$6,300
Records rebuilt13 months
ProcessDocumented
The situation — A business owner considering a voluntary disclosure, Mississauga, Ontario
A business owner considering a voluntary disclosure in Mississauga, Ontario could not answer basic questions about its own numbers. A waiver signed at the counter that kept an otherwise closed year open with no end date sat between the bank statements and the ledger.
What we did for A business owner considering a voluntary disclosure, Mississauga, Ontario
We filed the disclosure through the Voluntary Disclosures Program before contact, which removed the gross-negligence penalty entirely. We then documented the process so the work does not depend on any one person remembering how it was done.
The result — A business owner considering a voluntary disclosure, Mississauga, Ontario
Records rebuilt and reconciled, $6,300 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 5 · Planning that cut the bill
$63,000 Cut From The Annual Tax Bill — Family Business Under Review, Edmonton
Client: A family business under a related-party review · Where: Edmonton, Alberta · Engagement: 11 weeks, fixed fee
First-year saving$63,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation — A family business under a related-party review, Edmonton, Alberta
A family business under a related-party review in Edmonton, Alberta 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 family business under a related-party review, Edmonton, Alberta
We modelled the current position against the alternatives before changing anything. Then we traced each unexplained deposit to its source — loans, transfers between accounts, an insurance settlement — and reduced the net-worth assessment accordingly.
The result — A family business under a related-party review, Edmonton, Alberta
The change saved $63,000 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 6 · CRA review defended
$22,000 Reassessment Reduced To Nil On Review — Professional Under Lifestyle Audit, Ottawa
Client: A professional under a lifestyle audit · Where: Ottawa, Ontario · Engagement: 5 weeks, fixed fee
Reassessment reduced toNil
Tax protected$22,000
Prior filingsUndisturbed
The situation — A professional under a lifestyle audit, Ottawa, Ontario
A review notice arrived at a professional under a lifestyle audit in Ottawa, Ontario, covering CRA audit bookkeeping cleanup for two tax years. The auditor's working position was an adjustment of $22,000. It was driven by a confirmation letter left in a drawer until the appeal window had closed.
What we did for A professional under a lifestyle audit, Ottawa, Ontario
Rather than negotiate, we rebuilt the record. We brought every outstanding return current, then negotiated a payment arrangement that stopped the collections action. We then submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result — A professional under a lifestyle audit, Ottawa, Ontario
The auditor accepted the documented position and closed the review without adjustment, protecting $22,000 and leaving the prior filings undisturbed.
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.
