6 worked E-commerce Sales-Tax Compliance 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 e-commerce sales-tax compliance work, not a specific client's file.
Case Study 1 · Backlog brought current
Collections Halted And $87,000 Cut From A 5-Year Backlog — Restaurant Group, Guelph
Client: A restaurant group · Where: Guelph, Ontario · Engagement: 10 weeks, fixed fee
Balance reduced by$87,000
Backlog cleared5 years
CollectionsHalted
The situation — A restaurant group, Guelph, Ontario
By the time a restaurant group in Guelph, Ontario called, 5 years were outstanding. The CRA had assessed on estimates. Underneath it sat a sales tax account filed annually while the CRA had moved the business to quarterly.
What we did for A restaurant group, Guelph, Ontario
We reconstructed the records year by year. We filed the section 156 election for the related registrants, so supplies between them stopped carrying tax that served no purpose but cash-flow drag. Each filing replaced an arbitrary assessment with a real one.
The result — A restaurant group, Guelph, Ontario
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $87,000, and a relief application addressed part of the accumulated interest.
Case Study 2 · CRA review defended
$37,500 Reassessment Reduced To Nil On Review — Mixed-Supply Practice, Vancouver
Client: A professional practice with exempt and taxable supplies · Where: Vancouver, British Columbia · Engagement: 8 weeks, fixed fee
Reassessment reduced toNil
Tax protected$37,500
Prior filingsUndisturbed
The situation — A professional practice with exempt and taxable supplies, Vancouver, British Columbia
A review notice arrived at a professional practice with exempt and taxable supplies in Vancouver, British Columbia, covering e-commerce sales-tax compliance for two tax years. The auditor's working position was an adjustment of $37,500. It was driven by a registration threshold crossed nine months before anyone registered.
What we did for A professional practice with exempt and taxable supplies, Vancouver, British Columbia
Rather than negotiate, we rebuilt the record. We assembled the export documentation, restored zero-rating on the qualifying sales, and reduced the proposed assessment. We then submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result — A professional practice with exempt and taxable supplies, Vancouver, British Columbia
The auditor accepted the documented position and closed the review without adjustment, protecting $37,500 and leaving the prior filings undisturbed.
Case Study 3 · Cash and remittance control
$81,000 Of Working Capital Freed From The Tax Cycle — Exempt-Supply Clinic, Winnipeg
Client: A health clinic making exempt supplies · Where: Winnipeg, Manitoba · Engagement: 6 weeks, fixed fee
Working capital freed$81,000
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation — A health clinic making exempt supplies, Winnipeg, Manitoba
A health clinic making exempt supplies in Winnipeg, Manitoba was profitable on paper and short of cash every month. A commercial property purchase closed on the assumption no tax applied because the vendor was not registered explained most of the gap.
What we did for A health clinic making exempt supplies, Winnipeg, Manitoba
We set a defensible input tax credit allocation between taxable and exempt supplies and documented the method for future filings. We also built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result — A health clinic making exempt supplies, Winnipeg, Manitoba
$81,000 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 4 · Objection and relief
Notice Of Objection Allowed In Full, $22,500 Reversed — Interprovincial Construction Supplier, Saskatoon
Client: A construction supplier selling into three provinces · Where: Saskatoon, Saskatchewan · Engagement: 10 weeks, fixed fee
Amount reversed$22,500
ObjectionAllowed in full
Account balanceNil
The situation — A construction supplier selling into three provinces, Saskatoon, Saskatchewan
A construction supplier selling into three provinces in Saskatoon, Saskatchewan had been reassessed for $22,500. 20 days were left on the objection deadline. The reassessment rested on export sales zero-rated with no shipping documentation behind them.
What we did for A construction supplier selling into three provinces, Saskatoon, Saskatchewan
We filed the objection inside the deadline with a complete submission rather than a placeholder. Alongside it, we backdated the registration to the date the business stopped being a small supplier, remitted the tax owing, and applied for relief on the penalty portion.
The result — A construction supplier selling into three provinces, Saskatoon, Saskatchewan
The appeals officer allowed the objection in full. $22,500 was reversed and the account returned to a nil balance.
Case Study 5 · Sale and succession
Intergenerational Transfer Completed With $280,000 Deferred — Interprovincial Marketing Agency, Regina
Client: A marketing agency billing outside its home province · Where: Regina, Saskatchewan · Engagement: 5 weeks, fixed fee
Tax deferred$280,000
TransferCompleted
RecordsReview-ready
The situation — A marketing agency billing outside its home province, Regina, Saskatchewan
A generational transfer at a marketing agency billing outside its home province in Regina, Saskatchewan had been discussed for years without a plan. A shareholder loan balance that would have been picked up as income on closing meant the transfer as contemplated would have been fully taxable.
What we did for A marketing agency billing outside its home province, Regina, Saskatchewan
We rebuilt the sales ledger by customer province and applied the correct place-of-supply rate to each stream. We filed corrected returns before the CRA opened a review. We sequenced the steps so each one was complete and documented before the next depended on it.
The result — A marketing agency billing outside its home province, Regina, Saskatchewan
$280,000 of tax was deferred through the transfer, and the successor generation took over a corporation whose records stood up to review.
Case Study 6 · Scaling without breaking
Scaled To 35 Staff With $103,000 Of Working Capital Freed — Freight Brokerage, Windsor
The situation — A freight brokerage, Windsor, Ontario
A freight brokerage in Windsor, Ontario was growing fast, with headcount reaching 35 in eighteen months. The back office had not kept up. Management fees between two related registrants carrying tax that only ever went out and came back was the first thing to break.
What we did for A freight brokerage, Windsor, Ontario
We tested the quick method against the account’s actual input tax credit history and stayed on the regular method where the credits were worth more. We built the compliance calendar for the size the business was becoming rather than the size it had been.
The result — A freight brokerage, Windsor, Ontario
The business reached 35 staff with no missed remittance and no late filing. $103,000 of working capital was freed 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.
