6 worked GST/HST Return Filing 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 return filing work, not a specific client's file.
Case Study 1 · Backlog brought current
Collections Halted And $19,500 Cut From A 6-Year Backlog — Late GST/HST Registrant, Halifax
Client: A seller who crossed the registration threshold before registering · Where: Halifax, Nova Scotia · Engagement: 6 weeks, fixed fee
Balance reduced by$19,500
Backlog cleared6 years
CollectionsHalted
The situation — A seller who crossed the registration threshold before registering, Halifax, Nova Scotia
By the time a seller who crossed the registration threshold before registering in Halifax, Nova Scotia called, 6 years were outstanding. The CRA had assessed on estimates. Underneath it sat nil periods left unfiled, which held up the refund on the one period that mattered.
What we did for A seller who crossed the registration threshold before registering, Halifax, Nova Scotia
We reconstructed the records year by year. 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. Each filing replaced an arbitrary assessment with a real one.
The result — A seller who crossed the registration threshold before registering, Halifax, Nova Scotia
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $19,500, and a relief application addressed part of the accumulated interest.
Case Study 2 · Records and systems rebuilt
12 Months Reconciled And $11,500 Of Input Tax Recovered — Mixed-Use Landlord, Lethbridge
Client: A residential landlord also renting commercial space · Where: Lethbridge, Alberta · Engagement: 4 weeks, fixed fee
Months reconciled12
Input tax recovered$11,500
Close time6 days
The situation — A residential landlord also renting commercial space, Lethbridge, Alberta
Nothing reconciled at a residential landlord also renting commercial space in Lethbridge, Alberta. Every filing started with 12 months of cleanup. The file was carrying input tax credits claimed on the exempt side of a mixed-supply business.
What we did for A residential landlord also renting commercial space, Lethbridge, Alberta
We rebuilt from source rather than correcting on top of the existing file. 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. Then we set the routine that keeps it clean.
The result — A residential landlord also renting commercial space, Lethbridge, Alberta
12 months reconciled to the bank. The close now takes 6 days, and $11,500 of previously unclaimable input tax was recovered in the process.
Client: A professional practice with exempt and taxable supplies · Where: Brampton, Ontario · Engagement: 3 weeks, fixed fee
Proposed tax cleared$57,000
Review duration3 weeks
OutcomeNo change
The situation — A professional practice with exempt and taxable supplies, Brampton, Ontario
A professional practice with exempt and taxable supplies in Brampton, Ontario was selected for review. Management fees between two related registrants carrying tax that only ever went out and came back had shown up in the CRA's automated matching. The proposed adjustment on GST/HST return filing came to $57,000.
What we did for A professional practice with exempt and taxable supplies, Brampton, Ontario
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. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result — A professional practice with exempt and taxable supplies, Brampton, Ontario
The review closed with no change. $57,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Client: A manufacturer exporting to the US · Where: Mississauga, Ontario · Engagement: 4 weeks, fixed fee
Annual saving$27,000
ReorganisationTax-neutral
StructureMatches operations
The situation — A manufacturer exporting to the US, Mississauga, Ontario
The structure at a manufacturer exporting to the US in Mississauga, Ontario needed fixing. The file was carrying HST charged at the home-province rate on sales into four different provinces. Every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did for A manufacturer exporting to the US, Mississauga, Ontario
We worked with the client's lawyer. Together, we brought the nil and missing periods current so the account was clean before the refund claim was filed. We also prepared the elections, resolutions and valuations the structure needed to stand up.
The result — A manufacturer exporting to the US, Mississauga, Ontario
The structure now matches the business. Annual saving of $27,000, and the reorganisation itself was tax-neutral.
Case Study 5 · Cash and remittance control
Remittance Schedule Corrected, $105,000 Refunded — Freight Brokerage, Victoria
Client: A freight brokerage · Where: Victoria, British Columbia · Engagement: 3 weeks, fixed fee
Overpayment refunded$105,000
Late remittances sinceZero
ScheduleAutomated
The situation — A freight brokerage, Victoria, British Columbia
Remittances at a freight brokerage in Victoria, British Columbia were consistently late by a few days. That was enough to trigger penalties every quarter. Behind it sat export sales zero-rated with no shipping documentation behind them.
What we did for A freight brokerage, Victoria, British Columbia
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 freight brokerage, Victoria, British Columbia
Penalties stopped from the following remittance onwards, and $105,000 of overpaid instalments was refunded.
Case Study 6 · Missed incentive claimed
$60,000 Credit Claim Filed And Accepted Without Adjustment — Restaurant Group, Hamilton
Client: A restaurant group · Where: Hamilton, Ontario · Engagement: 3 weeks, fixed fee
Claim value$60,000
AcceptedWithout adjustment
RepeatableAnnually
The situation — A restaurant group, Hamilton, Ontario
A restaurant group in Hamilton, Ontario assumed the credits did not apply to a business its size. A commercial property purchase closed on the assumption no tax applied because the vendor was not registered meant they had applied all along.
What we did for A restaurant group, Hamilton, Ontario
We identified the qualifying activity and built the documentation to support it. Then 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.
The result — A restaurant group, Hamilton, Ontario
$60,000 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
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.
