6 worked CRA Source-Deduction 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 cra source-deduction audit support work, not a specific client's file.
Case Study 1 · Deadline rescue
6-Week Turnaround Beat The Deadline And Saved $14,500 — Home-Care Agency, Burnaby
Client: A home-care agency · 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 — A home-care agency, Burnaby, British Columbia
With the deadline for cra source-deduction audit support weeks away, a home-care agency 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 for A home-care agency, Burnaby, British Columbia
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 — A home-care agency, Burnaby, British Columbia
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 — Security Services Contractor, Kitchener
The situation — A security services contractor, Kitchener, Ontario
A security services contractor 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 for A security services contractor, Kitchener, Ontario
We purified the corporation so the shares met the qualifying tests, then corrected the CPP and EI withholding for the balance of the year and set the employee up to recover the over-deduction on the personal return well ahead of the closing date.
The result — A security services contractor, Kitchener, Ontario
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 — Contractor-Paid Clinic, Windsor
Client: A clinic paying its associates as contractors · Where: Windsor, Ontario · Engagement: 8 weeks, fixed fee
First-year saving$24,500
RepeatsAnnually
Filing positionUnchanged in risk
The situation — A clinic paying its associates as contractors, Windsor, Ontario
A clinic paying its associates as contractors in Windsor, Ontario was compliant but paying more than it needed to. The prior year had been filed correctly and still left a director facing a personal assessment for unremitted source deductions on the table.
What we did for A clinic paying its associates as contractors, Windsor, Ontario
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 — A clinic paying its associates as contractors, Windsor, Ontario
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 — Manufacturing Employer, Kelowna
Client: A 30-employee manufacturer · Where: Kelowna, British Columbia · Engagement: 3 weeks, fixed fee
Assessment vacated$88,000
Supporting recordsNow on file
AccountCleared
The situation — A 30-employee manufacturer, Kelowna, British Columbia
A 30-employee manufacturer in Kelowna, British Columbia was carrying $88,000 of penalties and interest arising from a bonus accrued to bring the year-end tax bill down and still unpaid more than a year later, much of it accumulated during a period the CRA itself had delayed.
What we did for A 30-employee manufacturer, Kelowna, British Columbia
We reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips and framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result — A 30-employee manufacturer, Kelowna, British Columbia
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 — Two-Province Retail Chain, Toronto
Client: A retail chain across two provinces · Where: Toronto, Ontario · Engagement: 10 weeks, fixed fee
Credits claimed$24,500
Years adjusted7
Review outcomeNo adjustment
The situation — A retail chain across two provinces, Toronto, Ontario
A retail chain across two provinces in Toronto, Ontario had been filing for 7 years without ever claiming the incentives its activity qualified for. Behind that sat company vehicles used personally with no logbook and no taxable benefit reported.
What we did for A retail chain across two provinces, Toronto, Ontario
We tested each activity against the eligibility criteria rather than the description on the invoice, then filed the outstanding slips and summary and requested relief on the per-slip penalty with the reasons documented in writing.
The result — A retail chain across two provinces, Toronto, Ontario
$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 — Dental Practice, Mississauga
Client: A dental practice · Where: Mississauga, Ontario · Engagement: 5 weeks, fixed fee
Cash returned$19,000
Instalment basisCurrent year
ReviewedQuarterly
The situation — A dental practice, Mississauga, Ontario
A dental practice in Mississauga, Ontario was paying instalments calculated on a prior year that no longer reflected the business. T4 slips filed weeks after the deadline with no relief request made on the per-slip penalty was tying up $19,000 of cash.
What we did for A dental practice, Mississauga, Ontario
We rebased the instalments on the current-year estimate rather than the prior-year default, and 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.
The result — A dental practice, Mississauga, Ontario
$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, 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.
