6 Cryptocurrency Tax 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 cryptocurrency tax audit support work, not a general example.
Case Study 1 · CRA review defended
$67,000 Proposed Adjustment Withdrawn In Full — Restaurant Under a Net-Worth, Winnipeg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Adjustment withdrawn$67,000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
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 six years of unfiled corporate and personal returns and an active collections file and proposed an adjustment of $67,000, with 30 days to respond.
What we did
We treated the response as an evidence exercise rather than an argument. We assembled the contemporaneous records, filed a structured response to each proposed adjustment with the supporting documents indexed, and had the proposal withdrawn, then indexed every supporting document against the specific line the auditor had questioned.
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The proposed adjustment was withdrawn in full — all $67,000 of it.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 — Taxpayer with Frozen Bank, Brampton
Client: A taxpayer with frozen bank accounts · Where: Brampton, Ontario · Engagement: 7 weeks, fixed fee
Working capital freed$75,000
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation
A taxpayer with frozen bank accounts 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.
What we did
We brought every outstanding return current, then negotiated a payment arrangement that stopped the collections action and built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
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 — Business Owner with a, 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
The situation
An assessment of $88,000 landed at a business owner with a director liability assessment in Barrie, Ontario following a desk review. The auditor had not seen the records behind a director liability assessment for a corporation that had already stopped operating.
What we did
We traced each unexplained deposit to its source — loans, transfers between accounts, an insurance settlement — and reduced the net-worth assessment accordingly, then set out the legislative basis for the position alongside the documents supporting it.
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 — Contractor Facing a Proposed, Mississauga
Client: A contractor facing a proposed reassessment · Where: Mississauga, Ontario · Engagement: 3 weeks, fixed fee
Tax saved on closing$785,000
PriceAs agreed
Post-closing adjustmentsNone
The situation
A contractor facing a proposed reassessment in Mississauga, Ontario was preparing to sell. Due diligence surfaced passive assets sitting inside the operating company, disqualifying the shares, which would have reduced the price or killed the deal outright.
What we did
We cleaned up the historical file, filed the disclosure through the Voluntary Disclosures Program before contact, which removed the gross-negligence penalty entirely, and prepared the due-diligence package the buyer's advisers actually asked for.
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 a, 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
The situation
A family business under a related-party review in Saskatoon, Saskatchewan was opening in a second province — different filing obligations, a different payroll regime, and a proposal letter with a 30-day response window and no supporting records assembled already in the file.
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 and put monthly reporting in place so the owner could see the cash effect of growth while there was still time to act on it.
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 — Professional Under a Lifestyle, Victoria
Client: A professional under a lifestyle audit · Where: Victoria, British Columbia · Engagement: 4 weeks, fixed fee
Months reconciled25
Input tax recovered$11,000
Close time4 days
The situation
A professional under a lifestyle audit in Victoria, British Columbia was carrying six years of unfiled corporate and personal returns and an active collections file. Nothing reconciled, and every filing started with 25 months of cleanup.
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 set the routine that keeps it clean.
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 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.
