6 worked Cryptocurrency Tax 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 cryptocurrency tax audit support work, not a specific client's file.
Case Study 1 · CRA review defended
$67,000 Proposed Adjustment Withdrawn In Full — Restaurant Under Net-Worth Audit, Winnipeg
Client: A restaurant under a net-worth audit. Where: Winnipeg, Manitoba. Engagement: 11 weeks, fixed fee.
Adjustment withdrawn$67,000
File closed in11 weeks
Penalties assessedNone
Case 1: the situation
A restaurant under a net-worth audit in Winnipeg, Manitoba received a proposal letter opening a review of cryptocurrency tax audit support. The CRA had identified an objection deadline that had passed with no extension applied for. It proposed an adjustment of $67,000, with 30 days to respond.
Case 1: what we did
We treated the response as an evidence exercise rather than an argument. 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 then indexed every supporting document against the specific line the auditor had questioned.
Case 1: the result
The proposed adjustment was withdrawn in full — all $67,000 of it. The file closed in 11 weeks with no change to the assessed amounts and no penalty.
Case Study 2 · Cash and remittance control
$75,000 Of Working Capital Freed From The Tax Cycle — Long-Term Non-Filer, Brampton
Client: A taxpayer with eight years of unfiled returns. Where: Brampton, Ontario. Engagement: 7 weeks, fixed fee.
Working capital freed$75,000
On-time remittancesEvery period since
Forecast horizon13 weeks
Case 2: the situation
A taxpayer with eight years of unfiled returns in Brampton, Ontario was profitable on paper and short of cash every month. A net-worth assessment built on unexplained deposits that were actually loan proceeds explained most of the gap.
Case 2: what we did
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.
Case 2: the result
$75,000 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 · Objection and relief
$88,000 Of Penalties And Interest Cancelled On Relief — Director Facing Assessment, Barrie
Client: A business owner with a director liability assessment. Where: Barrie, Ontario. Engagement: 8 weeks, fixed fee.
Penalties and interest cancelled$88,000
Relief groundsAccepted
AssessmentAdjusted to filed position
Case 3: the situation
An assessment of $88,000 landed at a business owner with a director liability assessment in Barrie, Ontario following a desk review. It turned on a proposal letter with a 30-day response window and no supporting records assembled. The auditor had not seen the records behind it.
Case 3: what we did
We filed the Tax Court appeal inside the window and resolved the remaining adjustments before a hearing date was needed. We then set out the legislative basis for the position alongside the documents supporting it.
Case 3: the result
$88,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 4 · Sale and succession
Share Sale Restructured, $785,000 Less Tax On Closing — Employer Under Payroll Review, Mississauga
Client: A company facing a payroll trust examination. Where: Mississauga, Ontario. Engagement: 3 weeks, fixed fee.
Tax saved on closing$785,000
PriceAs agreed
Post-closing adjustmentsNone
Case 4: the situation
A company facing a payroll trust examination in Mississauga, Ontario was preparing to sell. Due diligence surfaced passive assets sitting inside the operating company, disqualifying the shares. That would have reduced the price or killed the deal outright.
Case 4: what we did
We cleaned up the historical file. We requested the auditor’s working papers and report to see how the assessment had been built before answering any of it. Then we prepared the due-diligence package the buyer's advisers actually asked for.
Case 4: the result
The deal closed at the agreed price. $785,000 of tax was saved against the structure originally proposed, with no post-closing adjustment.
Case Study 5 · Scaling without breaking
Growth Handled Without A Missed Filing, $100,000 Freed — Family Business Under Review, Saskatoon
Client: A family business under a related-party review. Where: Saskatoon, Saskatchewan. Engagement: 3 weeks, fixed fee.
Cash freed$100,000
Compliance failuresNone
ReportingMonthly
Case 5: the situation
A family business under a related-party review in Saskatoon, Saskatchewan was opening in a second province. That meant different filing obligations and a different payroll regime. A waiver signed at the counter that kept an otherwise closed year open with no end date already sat in the file.
Case 5: what we did
We assembled the contemporaneous records, filed a structured response to each proposed adjustment with the supporting documents indexed, and had the proposal withdrawn. 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.
Case 5: the result
Growth was absorbed without a compliance failure. $100,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 6 · Records and systems rebuilt
25 Months Reconciled And $11,000 Of Input Tax Recovered — Late-Objection Taxpayer, Victoria
Client: A taxpayer whose objection window has closed. Where: Victoria, British Columbia. Engagement: 4 weeks, fixed fee.
Months reconciled25
Input tax recovered$11,000
Close time4 days
Case 6: the situation
Nothing reconciled at a taxpayer whose objection window has closed in Victoria, British Columbia. Every filing started with 25 months of cleanup. The file was carrying a director liability assessment for a corporation that had already stopped operating.
Case 6: what we did
We rebuilt from source rather than correcting on top of the existing file. We brought every outstanding return current, then negotiated a payment arrangement that stopped the collections action. Then we set the routine that keeps it clean.
Case 6: the result
25 months reconciled to the bank. The close now takes 4 days, and $11,000 of previously unclaimable input tax was recovered in the process.
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.
