6 Expense Management Services 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 expense management services work, not a general example.
Case Study 1 · Sale and succession
Share Sale Restructured, $890,000 Less Tax On Closing — Machine-Shop Owner-Operator, London
A machine-shop owner-operator 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
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
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 — Commercial Cleaning Contractor, Barrie
A commercial cleaning contractor in Barrie, Ontario could not answer basic questions about its own numbers, because two sets of numbers — one in the accounting file, one the owner actually ran the business on sat between the bank statements and the ledger.
What we did
We rebuilt the trial balance from source documents, reconciled every bank and credit-card account, and issued a CSRS 4200 compilation with a proper basis-of-accounting note, then documented the process so the work does not depend on any one person remembering how it was done.
The result
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 — Boutique Fitness Studio Group, Ottawa
Client: A boutique fitness studio group · Where: Ottawa, Ontario · Engagement: 8 weeks, fixed fee
Credits claimed$131,000
Years adjusted7
Review outcomeNo adjustment
The situation
A boutique fitness studio group in Ottawa, Ontario had been filing for 7 years without ever claiming the incentives its activity qualified for. Behind that sat a shareholder loan account that had drifted for three years with no supporting entries.
What we did
We tested each activity against the eligibility criteria rather than the description on the invoice, then reconciled the inter-company accounts, papered the arrangement with a written agreement, and aligned both corporations’ year-ends.
The result
$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 — Regional Courier Operator, Regina
With the deadline for expense management services weeks away, a regional courier operator in Regina, Saskatchewan was carrying a bank that refused to renew an operating line without compliant statements. The exposure if the date slipped was around $130,000.
What we did
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. The filing went in complete rather than provisional, so there was no amended return to follow.
The result
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 in Lethbridge, Alberta was selected for review after a shareholder loan account that had drifted for three years with no supporting entries showed up in the CRA's automated matching. The proposed adjustment on expense management services came to $43,000.
What we did
We separated personal and corporate spending, cleared the shareholder loan through a documented salary and dividend mix, and restated the comparative year. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result
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 — Independent Pharmacy, Surrey
Client: An independent pharmacy · Where: Surrey, British Columbia · Engagement: 10 weeks, fixed fee
Assessment vacated$83,000
Supporting recordsNow on file
AccountCleared
The situation
An independent pharmacy in Surrey, British Columbia was carrying $83,000 of penalties and interest arising from year-end statements that arrived four months late and never tied to the bank, much of it accumulated during a period the CRA itself had delayed.
What we did
We rebuilt the trial balance from source documents, reconciled every bank and credit-card account, and issued a CSRS 4200 compilation with a proper basis-of-accounting note and framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result
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, 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.
