6 worked CRA Tax Problem Resolution 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 tax problem resolution work, not a specific client's file.
Case Study 1 · Scaling without breaking
Growth Handled Without A Missed Filing, $137,000 Freed — Professional Under Lifestyle Audit, Calgary
Client: A professional under a lifestyle audit · Where: Calgary, Alberta · Engagement: 10 weeks, fixed fee
Cash freed$137,000
Compliance failuresNone
ReportingMonthly
The situation — A professional under a lifestyle audit, Calgary, Alberta
A professional under a lifestyle audit in Calgary, Alberta was opening in a second province. That meant different filing obligations and a different payroll regime. A confirmation letter left in a drawer until the appeal window had closed already sat in the file.
What we did for A professional under a lifestyle audit, Calgary, Alberta
We requested the auditor’s working papers and report to see how the assessment had been built before answering any of it. We then put monthly reporting in place. That let the owner see the cash effect of growth while there was still time to act on it.
The result — A professional under a lifestyle audit, Calgary, Alberta
Growth was absorbed without a compliance failure. $137,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 2 · Cash and remittance control
$62,000 Of Working Capital Freed From The Tax Cycle — Taxpayer Facing Collections, Hamilton
Client: A taxpayer with frozen bank accounts · Where: Hamilton, Ontario · Engagement: 4 weeks, fixed fee
Working capital freed$62,000
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation — A taxpayer with frozen bank accounts, Hamilton, Ontario
A taxpayer with frozen bank accounts in Hamilton, Ontario was profitable on paper and short of cash every month. A director liability assessment for a corporation that had already stopped operating explained most of the gap.
What we did for A taxpayer with frozen bank accounts, Hamilton, Ontario
We kept the waiver narrowed to the issue actually under review and let the remaining years close on the normal reassessment period. We also built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result — A taxpayer with frozen bank accounts, Hamilton, Ontario
$62,000 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 3 · Deadline rescue
Filed On Time From A Standing Start, $12,000 Penalty Avoided — Importer Under Audit, Brampton
Client: An importer under a customs and GST audit · Where: Brampton, Ontario · Engagement: 8 weeks, fixed fee
Penalty avoided$12,000
Turnaround8 weeks
FiledOn time
The situation — An importer under a customs and GST audit, Brampton, Ontario
An importer under a customs and GST audit in Brampton, Ontario came to us 8 weeks before its filing deadline. The file came with a proposal letter with a 30-day response window and no supporting records assembled. A late filing would have triggered a penalty of roughly $12,000 before interest.
What we did for An importer under a customs and GST audit, Brampton, Ontario
We worked backwards from the deadline. We filed the disclosure through the Voluntary Disclosures Program before contact, which removed the gross-negligence penalty entirely. We prioritised the items that actually gated the filing and deferred everything that did not.
The result — An importer under a customs and GST audit, Brampton, Ontario
The return was filed on time and complete. The $12,000 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Client: A business owner considering a voluntary disclosure · Where: Moncton, New Brunswick · Engagement: 3 weeks, fixed fee
Annual saving$10,000
ReorganisationTax-neutral
StructureMatches operations
The situation — A business owner considering a voluntary disclosure, Moncton, New Brunswick
The structure at a business owner considering a voluntary disclosure in Moncton, New Brunswick needed fixing. The file was carrying an objection deadline that had passed with no extension applied for. Every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did for A business owner considering a voluntary disclosure, Moncton, New Brunswick
We worked with the client's lawyer. Together, we brought every outstanding return current, then negotiated a payment arrangement that stopped the collections action. We also prepared the elections, resolutions and valuations the structure needed to stand up.
The result — A business owner considering a voluntary disclosure, Moncton, New Brunswick
The structure now matches the business. Annual saving of $10,000, and the reorganisation itself was tax-neutral.
Case Study 5 · Sale and succession
Share Sale Restructured, $770,000 Less Tax On Closing — Taxpayer Relief Applicant, Vancouver
Client: A taxpayer applying for relief from penalties and interest · Where: Vancouver, British Columbia · Engagement: 4 weeks, fixed fee
Tax saved on closing$770,000
PriceAs agreed
Post-closing adjustmentsNone
The situation — A taxpayer applying for relief from penalties and interest, Vancouver, British Columbia
A taxpayer applying for relief from penalties and interest in Vancouver, British Columbia was preparing to sell. Due diligence surfaced a single shareholder holding every share, with no room to multiply the exemption. That would have reduced the price or killed the deal outright.
What we did for A taxpayer applying for relief from penalties and interest, Vancouver, British Columbia
We cleaned up the historical file. We assembled the contemporaneous records, filed a structured response to each proposed adjustment with the supporting documents indexed, and had the proposal withdrawn. Then we prepared the due-diligence package the buyer's advisers actually asked for.
The result — A taxpayer applying for relief from penalties and interest, Vancouver, British Columbia
The deal closed at the agreed price. $770,000 of tax was saved against the structure originally proposed, with no post-closing adjustment.
Client: A contractor facing a proposed reassessment · Where: Surrey, British Columbia · Engagement: 9 weeks, fixed fee
Proposed tax cleared$20,000
Review duration9 weeks
OutcomeNo change
The situation — A contractor facing a proposed reassessment, Surrey, British Columbia
A contractor facing a proposed reassessment in Surrey, British Columbia was selected for review. A waiver signed at the counter that kept an otherwise closed year open with no end date had shown up in the CRA's automated matching. The proposed adjustment on CRA tax problem resolution came to $20,000.
What we did for A contractor facing a proposed reassessment, Surrey, British Columbia
We filed the Tax Court appeal inside the window and resolved the remaining adjustments before a hearing date was needed. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result — A contractor facing a proposed reassessment, Surrey, British Columbia
The review closed with no change. $20,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
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.
