6 worked GST/HST Reconciliation 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 gst/hst reconciliation work, not a specific client's file.
Case Study 1 · Missed incentive claimed
Incentive Review Recovered $69,000 Across 6 Open Years — Restaurant Group, Windsor
Client: A restaurant group · Where: Windsor, Ontario · Engagement: 9 weeks, fixed fee
Recovered$69,000
Open years claimed6
Ongoing trackingIn place
The situation — A restaurant group, Windsor, Ontario
An incentive review at a restaurant group in Windsor, Ontario started from a simple question: what has never been claimed? The answer ran to 6 years. It was driven by a sales tax account filed annually while the CRA had moved the business to quarterly.
What we did for A restaurant group, Windsor, Ontario
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. We documented eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result — A restaurant group, Windsor, Ontario
The credits produced $69,000 across the open years. The tracking now in place means the following year's claim is documented as the work happens rather than reconstructed afterwards.
Case Study 2 · Backlog brought current
$32,000 Of Arbitrary Assessments Vacated After 3 Years — Interprovincial Marketing Agency, Ottawa
Client: A marketing agency billing outside its home province · Where: Ottawa, Ontario · Engagement: 3 weeks, fixed fee
Arbitrary tax vacated$32,000
Years brought current3
Account statusCurrent
The situation — A marketing agency billing outside its home province, Ottawa, Ontario
3 years of unfiled returns had turned into notional assessments at a marketing agency billing outside its home province in Ottawa, Ontario. Underneath lay management fees between two related registrants carrying tax that only ever went out and came back. Collections had already started.
What we did for A marketing agency billing outside its home province, Ottawa, Ontario
We tested the quick method against the account’s actual input tax credit history and stayed on the regular method where the credits were worth more. We then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result — A marketing agency billing outside its home province, Ottawa, Ontario
All 3 years were accepted as filed. $32,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 3 years.
Case Study 3 · Objection and relief
Desk-Review Assessment Of $97,000 Vacated — Cross-Border SaaS Company, Red Deer
Client: A SaaS company with Canadian and US customers · Where: Red Deer, Alberta · Engagement: 3 weeks, fixed fee
Assessment vacated$97,000
Supporting recordsNow on file
AccountCleared
The situation — A SaaS company with Canadian and US customers, Red Deer, Alberta
A SaaS company with Canadian and US customers in Red Deer, Alberta was carrying $97,000 of penalties and interest. The charges arose from input tax credits claimed on the exempt side of a mixed-supply business. Much of that amount accumulated during a period the CRA itself had delayed.
What we did for A SaaS company with Canadian and US customers, Red Deer, Alberta
We brought the nil and missing periods current so the account was clean before the refund claim was filed. We framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result — A SaaS company with Canadian and US customers, Red Deer, Alberta
The assessment was vacated. $97,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Case Study 4 · Records and systems rebuilt
Books Rebuilt From Source, $10,500 In Unclaimed Input Tax Found — Multi-Province Online Retailer, Mississauga
The situation — A multi-province online retailer, Mississauga, Ontario
A multi-province online retailer in Mississauga, Ontario could not answer basic questions about its own numbers. Nil periods left unfiled, which held up the refund on the one period that mattered sat between the bank statements and the ledger.
What we did for A multi-province online retailer, Mississauga, Ontario
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. We then documented the process so the work does not depend on any one person remembering how it was done.
The result — A multi-province online retailer, Mississauga, Ontario
Records rebuilt and reconciled, $10,500 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 5 · Planning that cut the bill
$11,500 Cut From The Annual Tax Bill — Exempt-Supply Clinic, Regina
Client: A health clinic making exempt supplies · Where: Regina, Saskatchewan · Engagement: 5 weeks, fixed fee
First-year saving$11,500
RepeatsAnnually
Filing positionUnchanged in risk
The situation — A health clinic making exempt supplies, Regina, Saskatchewan
A health clinic making exempt supplies in Regina, Saskatchewan was compliant but paying more than it needed to. The prior year had been filed correctly. It still left a sales tax account filed annually while the CRA had moved the business to quarterly on the table.
What we did for A health clinic making exempt supplies, Regina, Saskatchewan
We modelled the current position against the alternatives before changing anything. Then 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.
The result — A health clinic making exempt supplies, Regina, Saskatchewan
The change saved $11,500 in the first year and repeats annually. Nothing about the filings became more aggressive. The position is simply the one the rules already allowed.
Client: A residential landlord also renting commercial space · Where: Calgary, Alberta · Engagement: 4 weeks, fixed fee
Proposed tax cleared$94,000
Review duration4 weeks
OutcomeNo change
The situation — A residential landlord also renting commercial space, Calgary, Alberta
A residential landlord also renting commercial space in Calgary, Alberta was selected for review. A registration threshold crossed nine months before anyone registered had shown up in the CRA's automated matching. The proposed adjustment on GST/HST reconciliation came to $94,000.
What we did for A residential landlord also renting commercial space, Calgary, Alberta
We assembled the export documentation, restored zero-rating on the qualifying sales, and reduced the proposed assessment. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result — A residential landlord also renting commercial space, Calgary, Alberta
The review closed with no change. $94,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
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.
