6 worked Expense Management Services 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 expense management services work, not a specific client's file.
Case Study 1 · Sale and succession
Share Sale Restructured, $890,000 Less Tax On Closing — Family Wholesale Distributor, London
The situation — A family-owned wholesale distributor, London, Ontario
A family-owned wholesale distributor in London, Ontario was preparing to sell. Due diligence surfaced a single shareholder holding every share, with no room to multiply the exemption, which would have reduced the price or killed the deal outright.
What we did for A family-owned wholesale distributor, London, Ontario
We cleaned up the historical file, separated personal and corporate spending, cleared the shareholder loan through a documented salary and dividend mix, and restated the comparative year, and prepared the due-diligence package the buyer's advisers actually asked for.
The result — A family-owned wholesale distributor, London, Ontario
The deal closed at the agreed price. $890,000 of tax was saved against the structure originally proposed, with no post-closing adjustment.
Case Study 2 · Records and systems rebuilt
Books Rebuilt From Source, $4,100 In Unclaimed Input Tax Found — Machine-Shop Owner-Operator, Barrie
The situation — A machine-shop owner-operator, Barrie, Ontario
A machine-shop owner-operator in Barrie, Ontario could not answer basic questions about its own numbers, because year-end statements that arrived four months late and never tied to the bank sat between the bank statements and the ledger.
What we did for A machine-shop owner-operator, Barrie, Ontario
We reconciled the inter-company accounts, papered the arrangement with a written agreement, and aligned both corporations’ year-ends, then documented the process so the work does not depend on any one person remembering how it was done.
The result — A machine-shop owner-operator, Barrie, Ontario
Records rebuilt and reconciled, $4,100 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 3 · Missed incentive claimed
$131,000 In Credits Claimed That Prior Filings Had Missed — Landscaping Company, Ottawa
Client: A growing landscaping company · Where: Ottawa, Ontario · Engagement: 8 weeks, fixed fee
Credits claimed$131,000
Years adjusted7
Review outcomeNo adjustment
The situation — A growing landscaping company, Ottawa, Ontario
A growing landscaping company in Ottawa, Ontario had been filing for 7 years without ever claiming the incentives its activity qualified for. Behind that sat work in progress carried at billing value one year and at cost the next, so neither year was comparable.
What we did for A growing landscaping company, Ottawa, Ontario
We tested each activity against the eligibility criteria rather than the description on the invoice, then valued work in progress on one consistent basis and documented the method, so the comparative year could be relied on.
The result — A growing landscaping company, Ottawa, Ontario
$131,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 4 · Deadline rescue
9-Week Turnaround Beat The Deadline And Saved $130,000 — First Year-End Corporation, Regina
Client: An owner-managed corporation preparing its first year-end · Where: Regina, Saskatchewan · Engagement: 9 weeks, fixed fee
Late-filing penalty avoided$130,000
Filed with22 days to spare
Next yearPapers ready
The situation — An owner-managed corporation preparing its first year-end, Regina, Saskatchewan
With the deadline for expense management services weeks away, an owner-managed corporation preparing its first year-end in Regina, Saskatchewan was carrying work in progress carried at billing value one year and at cost the next, so neither year was comparable. The exposure if the date slipped was around $130,000.
What we did for An owner-managed corporation preparing its first year-end, Regina, Saskatchewan
We moved accruals, prepaids and depreciation into a documented month-end checklist, so they stopped being year-end discoveries. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — An owner-managed corporation preparing its first year-end, Regina, Saskatchewan
Filed with 22 days to spare. $130,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Client: A specialty food importer · Where: Lethbridge, Alberta · Engagement: 3 weeks, fixed fee
Proposed tax cleared$43,000
Review duration3 weeks
OutcomeNo change
The situation — A specialty food importer, Lethbridge, Alberta
A specialty food importer in Lethbridge, Alberta was selected for review after capital assets written off in full in the year of purchase, with no fixed-asset schedule behind the deduction showed up in the CRA's automated matching. The proposed adjustment on expense management services came to $43,000.
What we did for A specialty food importer, Lethbridge, Alberta
We set a monthly close calendar with a fixed cut-off, so the year-end became a review of work already done rather than a twelve-month rebuild. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result — A specialty food importer, Lethbridge, Alberta
The review closed with no change. $43,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 6 · Objection and relief
Desk-Review Assessment Of $83,000 Vacated — Off-Calendar Year-End Supplier, Surrey
Client: A supplier with an off-calendar fiscal year-end · Where: Surrey, British Columbia · Engagement: 10 weeks, fixed fee
Assessment vacated$83,000
Supporting recordsNow on file
AccountCleared
The situation — A supplier with an off-calendar fiscal year-end, Surrey, British Columbia
A supplier with an off-calendar fiscal year-end in Surrey, British Columbia was carrying $83,000 of penalties and interest arising from inter-company balances between two related corporations that had never been reconciled, much of it accumulated during a period the CRA itself had delayed.
What we did for A supplier with an off-calendar fiscal year-end, Surrey, British Columbia
We built a fixed-asset continuity schedule from the purchase invoices and set the capital cost allowance claim class by class rather than claiming the maximum by default and framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result — A supplier with an off-calendar fiscal year-end, Surrey, British Columbia
The assessment was vacated. $83,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Reviewed for the 2025 tax year by Udit Gupta, Founder and Tax Accountant. 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.
