6 CRA Source-Deduction Audit Support 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 cra source-deduction audit support work, not a general example.
Case Study 1 · Deadline rescue
6-Week Turnaround Beat The Deadline And Saved $14,500 — Security Services Contractor, Burnaby
Client: A security services contractor · Where: Burnaby, British Columbia · Engagement: 6 weeks, fixed fee
Late-filing penalty avoided$14,500
Filed with11 days to spare
Next yearPapers ready
The situation
With the deadline for cra source-deduction audit support weeks away, a security services contractor in Burnaby, British Columbia was carrying company vehicles used personally with no logbook and no taxable benefit reported. The exposure if the date slipped was around $14,500.
What we did
We reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s. The filing went in complete rather than provisional, so there was no amended return to follow.
The result
Filed with 11 days to spare. $14,500 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 2 · Sale and succession
$485,000 Sheltered By The Lifetime Capital Gains Exemption — 30-Employee Manufacturer, Kitchener
A 30-employee manufacturer in Kitchener, Ontario had an offer on the table and 17 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 reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips well ahead of the closing date.
The result
The sale closed on schedule with $485,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 3 · Planning that cut the bill
$24,500 Cut From The Annual Tax Bill — Retail Chain Across Two, Windsor
Client: A retail chain across two provinces · Where: Windsor, Ontario · Engagement: 8 weeks, fixed fee
First-year saving$24,500
RepeatsAnnually
Filing positionUnchanged in risk
The situation
A retail chain across two provinces in Windsor, Ontario was compliant but paying more than it needed to. The prior year had been filed correctly and still left T4s that did not agree to the payroll register or the general ledger on the table.
What we did
We modelled the current position against the alternatives before changing anything, 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.
The result
The change saved $24,500 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 4 · Objection and relief
Desk-Review Assessment Of $88,000 Vacated — Dental Practice, Kelowna
Client: A dental practice · Where: Kelowna, British Columbia · Engagement: 3 weeks, fixed fee
Assessment vacated$88,000
Supporting recordsNow on file
AccountCleared
The situation
A dental practice in Kelowna, British Columbia was carrying $88,000 of penalties and interest arising from long-term contractors who met every test for employment, much of it accumulated during a period the CRA itself had delayed.
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 and framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result
The assessment was vacated. $88,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Case Study 5 · Missed incentive claimed
$24,500 In Credits Claimed That Prior Filings Had Missed — Home-Care Agency, Toronto
A home-care agency in Toronto, Ontario had been filing for 7 years without ever claiming the incentives its activity qualified for. Behind that sat T4s that did not agree to the payroll register or the general ledger.
What we did
We tested each activity against the eligibility criteria rather than the description on the invoice, then reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s.
The result
$24,500 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 6 · Cash and remittance control
Instalments Rebased, $19,000 Of Cash Returned To The Business — Landscaping Company with Seasonal, Mississauga
Client: A landscaping company with seasonal staff · Where: Mississauga, Ontario · Engagement: 5 weeks, fixed fee
Cash returned$19,000
Instalment basisCurrent year
ReviewedQuarterly
The situation
A landscaping company with seasonal staff in Mississauga, Ontario was paying instalments calculated on a prior year that no longer reflected the business. Company vehicles used personally with no logbook and no taxable benefit reported was tying up $19,000 of cash.
What we did
We rebased the instalments on the current-year estimate rather than the prior-year default, and reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips.
The result
$19,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
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.
