Excise Tax and Excise Duty Assistance Case Studies
6 worked Excise Tax and Excise Duty Assistance 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 excise tax and excise duty assistance work, not a specific client's file.
Case Study 1 · Missed incentive claimed
$51,000 In Credits Claimed That Prior Filings Had Missed — Digital Platform Seller, Hamilton
Client: A platform seller collecting tax at checkout · Where: Hamilton, Ontario · Engagement: 5 weeks, fixed fee
Credits claimed$51,000
Years adjusted5
Review outcomeNo adjustment
The situation — A platform seller collecting tax at checkout, Hamilton, Ontario
A platform seller collecting tax at checkout in Hamilton, Ontario had been filing for 5 years. In that time, the incentives its activity qualified for were never claimed. Behind that sat a registration threshold crossed nine months before anyone registered.
What we did for A platform seller collecting tax at checkout, Hamilton, Ontario
We tested each activity against the eligibility criteria rather than the description on the invoice. Then we self-assessed the tax on the real property acquisition in the correct reporting period and claimed the offsetting input tax credit in the same return.
The result — A platform seller collecting tax at checkout, Hamilton, Ontario
$51,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 2 · Scaling without breaking
Growth Handled Without A Missed Filing, $32,500 Freed — Freight Brokerage, Lethbridge
Client: A freight brokerage · Where: Lethbridge, Alberta · Engagement: 7 weeks, fixed fee
Cash freed$32,500
Compliance failuresNone
ReportingMonthly
The situation — A freight brokerage, Lethbridge, Alberta
A freight brokerage in Lethbridge, Alberta was opening in a second province. That meant different filing obligations and a different payroll regime. Input tax credits claimed on the exempt side of a mixed-supply business already sat in the file.
What we did for A freight brokerage, Lethbridge, Alberta
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. 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 freight brokerage, Lethbridge, Alberta
Growth was absorbed without a compliance failure. $32,500 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 3 · Cash and remittance control
Remittance Schedule Corrected, $94,000 Refunded — Interprovincial Construction Supplier, Kitchener
Client: A construction supplier selling into three provinces · Where: Kitchener, Ontario · Engagement: 11 weeks, fixed fee
Overpayment refunded$94,000
Late remittances sinceZero
ScheduleAutomated
The situation — A construction supplier selling into three provinces, Kitchener, Ontario
Remittances at a construction supplier selling into three provinces in Kitchener, Ontario were consistently late by a few days. That was enough to trigger penalties every quarter. Behind it sat nil periods left unfiled, which held up the refund on the one period that mattered.
What we did for A construction supplier selling into three provinces, Kitchener, Ontario
We assembled the export documentation, restored zero-rating on the qualifying sales, and reduced the proposed assessment. Then we moved the remittance dates into a scheduled process rather than a monthly decision.
The result — A construction supplier selling into three provinces, Kitchener, Ontario
Penalties stopped from the following remittance onwards, and $94,000 of overpaid instalments was refunded.
Case Study 4 · Deadline rescue
Filed On Time From A Standing Start, $25,000 Penalty Avoided — Mixed-Supply Practice, Surrey
Client: A professional practice with exempt and taxable supplies · Where: Surrey, British Columbia · Engagement: 8 weeks, fixed fee
Penalty avoided$25,000
Turnaround8 weeks
FiledOn time
The situation — A professional practice with exempt and taxable supplies, Surrey, British Columbia
A professional practice with exempt and taxable supplies in Surrey, British Columbia came to us 8 weeks before its filing deadline. The file came with a sales tax account filed annually while the CRA had moved the business to quarterly. A late filing would have triggered a penalty of roughly $25,000 before interest.
What we did for A professional practice with exempt and taxable supplies, Surrey, British Columbia
We worked backwards from the deadline. We set a defensible input tax credit allocation between taxable and exempt supplies and documented the method for future filings. We prioritised the items that actually gated the filing and deferred everything that did not.
The result — A professional practice with exempt and taxable supplies, Surrey, British Columbia
The return was filed on time and complete. The $25,000 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
The situation — A wholesale food distributor, Toronto, Ontario
The structure at a wholesale food distributor in Toronto, Ontario needed fixing. The file was carrying a registration threshold crossed nine months before anyone registered. Every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did for A wholesale food distributor, Toronto, Ontario
We worked with the client's lawyer. Together, 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. We also prepared the elections, resolutions and valuations the structure needed to stand up.
The result — A wholesale food distributor, Toronto, Ontario
The structure now matches the business. Annual saving of $54,000, and the reorganisation itself was tax-neutral.
Case Study 6 · Sale and succession
$685,000 Sheltered By The Lifetime Capital Gains Exemption — Late GST/HST Registrant, Red Deer
Client: A seller who crossed the registration threshold before registering · Where: Red Deer, Alberta · Engagement: 8 weeks, fixed fee
Gain sheltered$685,000
ClosingOn schedule
Share qualificationMet
The situation — A seller who crossed the registration threshold before registering, Red Deer, Alberta
A seller who crossed the registration threshold before registering in Red Deer, Alberta had an offer on the table and 32 months to close. The shares did not qualify for the capital gains exemption. A shareholder loan balance that would have been picked up as income on closing was part of the reason.
What we did for A seller who crossed the registration threshold before registering, Red Deer, Alberta
We purified the corporation so the shares met the qualifying tests. 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. All of it was done well ahead of the closing date.
The result — A seller who crossed the registration threshold before registering, Red Deer, Alberta
The sale closed on schedule with $685,000 sheltered by the lifetime capital gains exemption across the shareholders.
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.
