6 E-commerce Sales-Tax Compliance 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 e-commerce sales-tax compliance work, not a general example.
Case Study 1 · Backlog brought current
Collections Halted And $87,000 Cut From A 5-Year Backlog — Multi-Province Online Retailer, Guelph
By the time a multi-province online retailer in Guelph, Ontario called, 5 years were outstanding and the CRA had assessed on estimates. Underneath it sat a registration threshold crossed nine months before anyone registered.
What we did
We reconstructed the records year by year and rebuilt the sales ledger by customer province, applied the correct place-of-supply rate to each stream, and filed corrected returns before the CRA opened a review. Each filing replaced an arbitrary assessment with a real one.
The result
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 — Manufacturer Exporting to the, Vancouver
Client: A manufacturer exporting to the US · Where: Vancouver, British Columbia · Engagement: 8 weeks, fixed fee
Reassessment reduced toNil
Tax protected$37,500
Prior filingsUndisturbed
The situation
A review notice arrived at a manufacturer exporting to the US 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, driven by input tax credits claimed on the exempt side of a mixed-supply business.
What we did
Rather than negotiate, we rebuilt the record. We set a defensible input tax credit allocation between taxable and exempt supplies and documented the method for future filings and submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result
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 — Restaurant Group, Winnipeg
Client: A restaurant group · Where: Winnipeg, Manitoba · Engagement: 6 weeks, fixed fee
Working capital freed$81,000
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation
A restaurant group in Winnipeg, Manitoba was profitable on paper and short of cash every month. Export sales zero-rated with no shipping documentation behind them explained most of the gap.
What we did
We backdated the registration to the day the threshold was crossed, remitted the tax owing, and applied for relief on the penalty portion and built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result
$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 — Marketing Agency Billing Outside, Saskatoon
Client: A marketing agency billing outside its home province · Where: Saskatoon, Saskatchewan · Engagement: 10 weeks, fixed fee
Amount reversed$22,500
ObjectionAllowed in full
Account balanceNil
The situation
A marketing agency billing outside its home province in Saskatoon, Saskatchewan had been reassessed for $22,500 and had 20 days left on the objection deadline. The reassessment rested on a sales tax account filed annually while the CRA had moved the business to quarterly.
What we did
We filed the objection inside the deadline with a complete submission rather than a placeholder, and assembled the export documentation, restored zero-rating on the qualifying sales, and reduced the proposed assessment.
The result
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 — SaaS Company with Canadian, Regina
Client: A SaaS company with Canadian and US customers · Where: Regina, Saskatchewan · Engagement: 5 weeks, fixed fee
Tax deferred$280,000
TransferCompleted
RecordsReview-ready
The situation
A generational transfer at a SaaS company with Canadian and US customers 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
We rebuilt the sales ledger by customer province, applied the correct place-of-supply rate to each stream, and filed corrected returns before the CRA opened a review, sequencing the steps so each one was complete and documented before the next depended on it.
The result
$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 — Construction Supplier Selling Into, Windsor
Client: A construction supplier selling into three provinces · Where: Windsor, Ontario · Engagement: 8 weeks, fixed fee
Headcount reached35
Working capital freed$103,000
Missed deadlinesZero
The situation
A construction supplier selling into three provinces in Windsor, Ontario was growing fast — headcount to 35 in eighteen months — and the back office had not kept up. A registration threshold crossed nine months before anyone registered was the first thing to break.
What we did
We set a defensible input tax credit allocation between taxable and exempt supplies and documented the method for future filings, and built the compliance calendar for the size the business was becoming rather than the size it had been.
The result
The business reached 35 staff with no missed remittance and no late filing. $103,000 of working capital was freed 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.
