6 GST/HST Audit Support 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 gst/hst audit support work, not a general example.
Case Study 1 · Planning that cut the bill
$26,500 Cut From The Annual Tax Bill — Restaurant Group, Barrie
Client: A restaurant group · Where: Barrie, Ontario · Engagement: 11 weeks, fixed fee
First-year saving$26,500
RepeatsAnnually
Filing positionUnchanged in risk
The situation
A restaurant group in Barrie, Ontario was compliant but paying more than it needed to. The prior year had been filed correctly and still left input tax credits claimed on the exempt side of a mixed-supply business on the table.
What we did
We modelled the current position against the alternatives before changing anything, then set a defensible input tax credit allocation between taxable and exempt supplies and documented the method for future filings.
The result
The change saved $26,500 in the first year and repeats annually. Nothing about the filings became more aggressive; the position is simply the one the rules already allowed.
Case Study 2 · Objection and relief
Desk-Review Assessment Of $124,000 Vacated — Used-Equipment Dealer, Kelowna
Client: A used-equipment dealer · Where: Kelowna, British Columbia · Engagement: 9 weeks, fixed fee
Assessment vacated$124,000
Supporting recordsNow on file
AccountCleared
The situation
A used-equipment dealer in Kelowna, British Columbia was carrying $124,000 of penalties and interest arising from HST charged at the home-province rate on sales into four different provinces, much of it accumulated during a period the CRA itself had delayed.
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 framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result
The assessment was vacated. $124,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Case Study 3 · Missed incentive claimed
Incentive Review Recovered $102,000 Across 7 Open Years — Marketing Agency Billing Outside, Guelph
Client: A marketing agency billing outside its home province · Where: Guelph, Ontario · Engagement: 11 weeks, fixed fee
Recovered$102,000
Open years claimed7
Ongoing trackingIn place
The situation
An incentive review at a marketing agency billing outside its home province in Guelph, Ontario started from a simple question: what has never been claimed? The answer ran to 7 years, driven by input tax credits claimed on the exempt side of a mixed-supply business.
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, documenting eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result
The credits produced $102,000 across the open years, and the tracking now in place means the following year's claim is documented as the work happens rather than reconstructed afterwards.
Case Study 4 · Cash and remittance control
Instalments Rebased, $84,000 Of Cash Returned To The Business — Wholesale Food Distributor, Lethbridge
Client: A wholesale food distributor · Where: Lethbridge, Alberta · Engagement: 5 weeks, fixed fee
Cash returned$84,000
Instalment basisCurrent year
ReviewedQuarterly
The situation
A wholesale food distributor in Lethbridge, Alberta was paying instalments calculated on a prior year that no longer reflected the business. A registration threshold crossed nine months before anyone registered was tying up $84,000 of cash.
What we did
We rebased the instalments on the current-year estimate rather than the prior-year default, and assembled the export documentation, restored zero-rating on the qualifying sales, and reduced the proposed assessment.
The result
$84,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 5 · Structure rebuilt
Holding Structure Added, $31,500 Saved Annually — SaaS Company with Canadian, Toronto
Client: A SaaS company with Canadian and US customers · Where: Toronto, Ontario · Engagement: 7 weeks, fixed fee
Annual saving$31,500
ReorganisationTax-neutral
StructureMatches operations
The situation
A SaaS company with Canadian and US customers in Toronto, Ontario was carrying a sales tax account filed annually while the CRA had moved the business to quarterly, and every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did
Working with the client's lawyer, we set a defensible input tax credit allocation between taxable and exempt supplies and documented the method for future filings and prepared the elections, resolutions and valuations the structure needed to stand up.
The result
The structure now matches the business. Annual saving of $31,500, and the reorganisation itself was tax-neutral.
Case Study 6 · CRA review defended
$60,000 Proposed Adjustment Withdrawn In Full — Construction Supplier Selling Into, Calgary
Client: A construction supplier selling into three provinces · Where: Calgary, Alberta · Engagement: 4 weeks, fixed fee
Adjustment withdrawn$60,000
File closed in4 weeks
Penalties assessedNone
The situation
A construction supplier selling into three provinces in Calgary, Alberta received a proposal letter opening a review of gst/hst audit support. The CRA had identified input tax credits claimed on the exempt side of a mixed-supply business and proposed an adjustment of $60,000, with 30 days to respond.
What we did
We treated the response as an evidence exercise rather than an argument. We backdated the registration to the day the threshold was crossed, remitted the tax owing, and applied for relief on the penalty portion, then indexed every supporting document against the specific line the auditor had questioned.
The result
The proposed adjustment was withdrawn in full — all $60,000 of it. The file closed in 4 weeks with no change to the assessed amounts and no penalty.
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.
