6 worked Digital Asset Accounting 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 digital asset accounting work, not a specific client's file.
Case Study 1 · Objection and relief
$21,000 Of Penalties And Interest Cancelled On Relief — Process-Developing Manufacturer, Brampton
Client: A manufacturer developing a production process · Where: Brampton, Ontario · Engagement: 5 weeks, fixed fee
Penalties and interest cancelled$21,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — A manufacturer developing a production process, Brampton, Ontario
An assessment of $21,000 landed at a manufacturer developing a production process in Brampton, Ontario following a desk review. It turned on a provincial credit left unclaimed alongside a successful federal SR&ED claim. The auditor had not seen the records behind it.
What we did for A manufacturer developing a production process, Brampton, Ontario
We layered the applicable provincial credit onto the federal claim in the same filing. We then set out the legislative basis for the position alongside the documents supporting it.
The result — A manufacturer developing a production process, Brampton, Ontario
$21,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 2 · Planning that cut the bill
$59,000 Saved By Correcting What Prior Filings Had Missed — Agri-Tech Company, Halifax
Client: An agri-tech company · Where: Halifax, Nova Scotia · Engagement: 10 weeks, fixed fee
Saving identified$59,000
RecurringYes
Positions documentedAll
The situation — An agri-tech company, Halifax, Nova Scotia
An agri-tech company in Halifax, Nova Scotia asked for a second opinion on digital asset accounting. That followed three years of rising tax. The review found a claim filed at the 15% non-refundable rate when CCPC status supported 35% refundable.
What we did for An agri-tech company, Halifax, Nova Scotia
We built the comparison first: current structure against two alternatives. Then we filed the complete project list on the original claim rather than holding projects back for an amendment that could not be made.
The result — An agri-tech company, Halifax, Nova Scotia
First-year saving of $59,000, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 3 · Sale and succession
Share Sale Restructured, $375,000 Less Tax On Closing — Provincial Credit Claimant, Ottawa
Client: A corporation stacking a provincial credit on a federal claim · Where: Ottawa, Ontario · Engagement: 3 weeks, fixed fee
Tax saved on closing$375,000
PriceAs agreed
Post-closing adjustmentsNone
The situation — A corporation stacking a provincial credit on a federal claim, Ottawa, Ontario
A corporation stacking a provincial credit on a federal claim in Ottawa, Ontario was preparing to sell. Due diligence surfaced no valuation on file to support the price the parties had agreed. That would have reduced the price or killed the deal outright.
What we did for A corporation stacking a provincial credit on a federal claim, Ottawa, Ontario
We cleaned up the historical file. We separated eligible experimental development time from routine production work in the time records. That made the claimed portion traceable to a person and a date. Then we prepared the due-diligence package the buyer's advisers actually asked for.
The result — A corporation stacking a provincial credit on a federal claim, Ottawa, Ontario
The deal closed at the agreed price. $375,000 of tax was saved against the structure originally proposed, with no post-closing adjustment.
Case Study 4 · Deadline rescue
11-Week Turnaround Beat The Deadline And Saved $128,000 — Medical Device Developer, Calgary
Client: A medical device developer · Where: Calgary, Alberta · Engagement: 11 weeks, fixed fee
Late-filing penalty avoided$128,000
Filed with21 days to spare
Next yearPapers ready
The situation — A medical device developer, Calgary, Alberta
A medical device developer in Calgary, Alberta was weeks away from the deadline for digital asset accounting. Behind that sat eligible development work never claimed because nobody thought it counted as research. The exposure if the date slipped was around $128,000.
What we did for A medical device developer, Calgary, Alberta
We put contemporaneous tracking in place — project logs tied to time records — so the following year’s claim was defensible by construction. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — A medical device developer, Calgary, Alberta
Filed with 21 days to spare. $128,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 5 · Scaling without breaking
Growth Handled Without A Missed Filing, $137,000 Freed — Equipment-Investing Manufacturer, Kelowna
Client: A manufacturer investing in new production equipment · Where: Kelowna, British Columbia · Engagement: 10 weeks, fixed fee
Cash freed$137,000
Compliance failuresNone
ReportingMonthly
The situation — A manufacturer investing in new production equipment, Kelowna, British Columbia
A manufacturer investing in new production equipment in Kelowna, British Columbia was opening in a second province. That meant different filing obligations and a different payroll regime. Technical narratives written by the finance team with no input from the people who ran the experiments already sat in the file.
What we did for A manufacturer investing in new production equipment, Kelowna, British Columbia
We netted the government assistance against the qualified expenditure pool, so the claim matched what would survive a review. 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 manufacturer investing in new production equipment, Kelowna, British Columbia
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 6 · Backlog brought current
Collections Halted And $66,000 Cut From A 5-Year Backlog — Engineering Development Firm, Victoria
Client: An engineering firm solving a technical uncertainty · Where: Victoria, British Columbia · Engagement: 4 weeks, fixed fee
Balance reduced by$66,000
Backlog cleared5 years
CollectionsHalted
The situation — An engineering firm solving a technical uncertainty, Victoria, British Columbia
By the time an engineering firm solving a technical uncertainty in Victoria, British Columbia called, 5 years were outstanding. The CRA had assessed on estimates. Underneath it sat an amended claim adding two projects after the reporting deadline had already passed.
What we did for An engineering firm solving a technical uncertainty, Victoria, British Columbia
We reconstructed the records year by year. We sat with the technical staff to write each project description around the uncertainty they actually faced and the tests they ran. Each filing replaced an arbitrary assessment with a real one.
The result — An engineering firm solving a technical uncertainty, Victoria, British Columbia
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $66,000, and a relief application addressed part of the accumulated interest.
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.
