6 worked GST/HST Voluntary Disclosure 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 voluntary disclosure work, not a specific client's file.
Case Study 1 · Deadline rescue
Filed On Time From A Standing Start, $20,500 Penalty Avoided — Freight Brokerage, Victoria
Client: A freight brokerage · Where: Victoria, British Columbia · Engagement: 8 weeks, fixed fee
Penalty avoided$20,500
Turnaround8 weeks
FiledOn time
The situation — A freight brokerage, Victoria, British Columbia
A freight brokerage in Victoria, British Columbia came to us 8 weeks before its filing deadline. The file came with nil periods left unfiled, which held up the refund on the one period that mattered. A late filing would have triggered a penalty of roughly $20,500 before interest.
What we did for A freight brokerage, Victoria, British Columbia
We worked backwards from the deadline. 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 prioritised the items that actually gated the filing and deferred everything that did not.
The result — A freight brokerage, Victoria, British Columbia
The return was filed on time and complete. The $20,500 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Case Study 2 · Planning that cut the bill
$34,500 Saved By Correcting What Prior Filings Had Missed — Wholesale Food Distributor, London
The situation — A wholesale food distributor, London, Ontario
A wholesale food distributor in London, Ontario asked for a second opinion on GST/HST voluntary disclosure. That followed three years of rising tax. The review found management fees between two related registrants carrying tax that only ever went out and came back.
What we did for A wholesale food distributor, London, Ontario
We built the comparison first: current structure against two alternatives. 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 wholesale food distributor, London, Ontario
First-year saving of $34,500, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 3 · Missed incentive claimed
$97,000 Credit Claim Filed And Accepted Without Adjustment — Digital Platform Seller, Ottawa
Client: A platform seller collecting tax at checkout · Where: Ottawa, Ontario · Engagement: 9 weeks, fixed fee
Claim value$97,000
AcceptedWithout adjustment
RepeatableAnnually
The situation — A platform seller collecting tax at checkout, Ottawa, Ontario
A platform seller collecting tax at checkout in Ottawa, Ontario assumed the credits did not apply to a business its size. A registration threshold crossed nine months before anyone registered meant they had applied all along.
What we did for A platform seller collecting tax at checkout, Ottawa, Ontario
We identified the qualifying activity and built the documentation to support it. Then 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.
The result — A platform seller collecting tax at checkout, Ottawa, Ontario
$97,000 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
Case Study 4 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $37,000 Saved Each Year — Mixed-Supply Practice, Lethbridge
Client: A professional practice with exempt and taxable supplies · Where: Lethbridge, Alberta · Engagement: 5 weeks, fixed fee
Annual saving$37,000
Tax on reorganisationDeferred
Elections filedOn time
The situation — A professional practice with exempt and taxable supplies, Lethbridge, Alberta
A professional practice with exempt and taxable supplies in Lethbridge, Alberta had outgrown the structure it started with. A registration threshold crossed nine months before anyone registered was the immediate problem. The longer-term one was that the structure blocked the next step.
What we did for A professional practice with exempt and taxable supplies, Lethbridge, Alberta
We mapped the current structure and modelled the target. Then we set a defensible input tax credit allocation between taxable and exempt supplies and documented the method for future filings. The tax-deferred elections were filed on time and the supporting valuations documented.
The result — A professional practice with exempt and taxable supplies, Lethbridge, Alberta
The reorganisation completed without triggering tax, and the new structure saves approximately $37,000 a year while removing the exposure the old one carried.
Case Study 5 · Records and systems rebuilt
Books Rebuilt From Source, $7,900 In Unclaimed Input Tax Found — Used-Equipment Dealer, Windsor
The situation — A used-equipment dealer, Windsor, Ontario
A used-equipment dealer in Windsor, Ontario could not answer basic questions about its own numbers. HST charged at the home-province rate on sales into four different provinces sat between the bank statements and the ledger.
What we did for A used-equipment dealer, Windsor, Ontario
We assembled the export documentation, restored zero-rating on the qualifying sales, and reduced the proposed assessment. We then documented the process so the work does not depend on any one person remembering how it was done.
The result — A used-equipment dealer, Windsor, Ontario
Records rebuilt and reconciled, $7,900 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 6 · Scaling without breaking
Second-Province Expansion Handled, $137,000 Of Cash Released — Interprovincial Construction Supplier, Burnaby
Client: A construction supplier selling into three provinces · Where: Burnaby, British Columbia · Engagement: 3 weeks, fixed fee
Cash released$137,000
New registrationsComplete on day one
Compliance gapsNone
The situation — A construction supplier selling into three provinces, Burnaby, British Columbia
Revenue at a construction supplier selling into three provinces in Burnaby, British Columbia was up sharply and cash was tighter than ever. Underneath it sat a commercial property purchase closed on the assumption no tax applied because the vendor was not registered.
What we did for A construction supplier selling into three provinces, Burnaby, British Columbia
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. Every new obligation was set up before it was triggered, not after. That covered registration, remittance frequency and provincial filing.
The result — A construction supplier selling into three provinces, Burnaby, British Columbia
$137,000 of cash was released from the working capital cycle. The expansion completed with every registration and filing obligation covered from day 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.
