6 worked Invoice Reconstruction 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 invoice reconstruction work, not a specific client's file.
Case Study 1 · Objection and relief
Desk-Review Assessment Of $118,000 Vacated — Two-Location Cafe, Vancouver
Client: A two-location cafe · Where: Vancouver, British Columbia · Engagement: 4 weeks, fixed fee
Assessment vacated$118,000
Supporting recordsNow on file
AccountCleared
The situation — A two-location cafe, Vancouver, British Columbia
A two-location cafe in Vancouver, British Columbia was carrying $118,000 of penalties and interest arising from eighteen months of unreconciled transactions and a shoebox of receipts, much of it accumulated during a period the CRA itself had delayed.
What we did for A two-location cafe, Vancouver, British Columbia
We rebuilt the ledger from bank and card statements, matched every receipt to a transaction, and removed duplicated input tax credits before they became a review and framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result — A two-location cafe, Vancouver, British Columbia
The assessment was vacated. $118,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Case Study 2 · Sale and succession
$520,000 Sheltered By The Lifetime Capital Gains Exemption — Equipment Rental Yard, Hamilton
The situation — An equipment rental yard, Hamilton, Ontario
An equipment rental yard in Hamilton, Ontario had an offer on the table and 25 months to close. The shares did not qualify for the capital gains exemption, and a single shareholder holding every share, with no room to multiply the exemption was part of the reason.
What we did for An equipment rental yard, Hamilton, Ontario
We purified the corporation so the shares met the qualifying tests, then set up a documented chart of accounts, a receipt-capture workflow and a monthly reconciliation that closes within ten days of month-end well ahead of the closing date.
The result — An equipment rental yard, Hamilton, Ontario
The sale closed on schedule with $520,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 3 · Scaling without breaking
Second-Province Expansion Handled, $112,000 Of Cash Released — Courier Subcontractor, Burnaby
Client: A courier subcontractor paid by the drop · Where: Burnaby, British Columbia · Engagement: 6 weeks, fixed fee
Cash released$112,000
New registrationsComplete on day one
Compliance gapsNone
The situation — A courier subcontractor paid by the drop, Burnaby, British Columbia
Revenue at a courier subcontractor paid by the drop in Burnaby, British Columbia was up sharply and cash was tighter than ever. Underneath it sat a receivables list that included invoices collected eleven months earlier.
What we did for A courier subcontractor paid by the drop, Burnaby, British Columbia
We separated the owner’s personal spending out of the corporate accounts and cleared the resulting shareholder loan properly. Every new obligation — registration, remittance frequency, provincial filing — was set up before it was triggered, not after.
The result — A courier subcontractor paid by the drop, Burnaby, British Columbia
$112,000 of cash was released from the working capital cycle, and the expansion completed with every registration and filing obligation covered from day one.
Case Study 4 · Records and systems rebuilt
33 Months Reconciled And $19,500 Of Input Tax Recovered — Small Law Practice, Victoria
Client: A small law practice · Where: Victoria, British Columbia · Engagement: 8 weeks, fixed fee
Months reconciled33
Input tax recovered$19,500
Close time10 days
The situation — A small law practice, Victoria, British Columbia
A small law practice in Victoria, British Columbia was carrying a bookkeeping file where owner draws, payroll and supplier payments all landed in the same account. Nothing reconciled, and every filing started with 33 months of cleanup.
What we did for A small law practice, Victoria, British Columbia
We rebuilt from source rather than correcting on top of the existing file. We reconciled receivables and payables to source documents and wrote off the balances that were genuinely uncollectible, with support, then set the routine that keeps it clean.
The result — A small law practice, Victoria, British Columbia
33 months reconciled to the bank. The close now takes 10 days, and $19,500 of previously unclaimable input tax was recovered in the process.
Case Study 5 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $73,000 Saved Each Year — Seasonal Food-Truck Operator, Guelph
Client: A food-truck operator running two seasonal units · Where: Guelph, Ontario · Engagement: 11 weeks, fixed fee
Annual saving$73,000
Tax on reorganisationDeferred
Elections filedOn time
The situation — A food-truck operator running two seasonal units, Guelph, Ontario
A food-truck operator running two seasonal units in Guelph, Ontario had outgrown the structure it started with. Input tax credits claimed on receipts that had already been claimed once was the immediate problem; the longer-term one was that the structure blocked the next step.
What we did for A food-truck operator running two seasonal units, Guelph, Ontario
We mapped the current structure, modelled the target, and rebuilt sales from the processor settlement reports so gross sales, fees and refunds each landed in an account of their own — with the tax-deferred elections filed on time and the supporting valuations documented.
The result — A food-truck operator running two seasonal units, Guelph, Ontario
The reorganisation completed without triggering tax, and the new structure saves approximately $73,000 a year while removing the exposure the old one carried.
Case Study 6 · Missed incentive claimed
Incentive Review Recovered $17,000 Across 4 Open Years — Subscription Box Retailer, Mississauga
The situation — A subscription box retailer, Mississauga, Ontario
An incentive review at a subscription box retailer in Mississauga, Ontario started from a simple question: what has never been claimed? The answer ran to 4 years, driven by three years of returns filed off numbers nobody could trace back to a bank statement.
What we did for A subscription box retailer, Mississauga, Ontario
We recoded the meals and entertainment accounts to the statutory limit and reversed the over-claimed input tax credits before the next return went in, documenting eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result — A subscription box retailer, Mississauga, Ontario
The credits produced $17,000 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.
Reviewed for the 2025 tax year by Udit Gupta, Founder and Tax Accountant. 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.
