6 worked Missing Transaction 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 missing transaction reconstruction work, not a specific client's file.
Case Study 1 · Records and systems rebuilt
Books Rebuilt From Source, $11,500 In Unclaimed Input Tax Found — Seasonal Food-Truck Operator, Red Deer
Client: A food-truck operator running two seasonal units · Where: Red Deer, Alberta · Engagement: 6 weeks, fixed fee
Unclaimed tax found$11,500
Records rebuilt34 months
ProcessDocumented
The situation — A food-truck operator running two seasonal units, Red Deer, Alberta
A food-truck operator running two seasonal units in Red Deer, Alberta could not answer basic questions about its own numbers, because meals and entertainment coded at full cost with the input tax credit claimed on the whole amount sat between the bank statements and the ledger.
What we did for A food-truck operator running two seasonal units, Red Deer, Alberta
We converted the foreign-currency purchases at transaction-date rates and recorded the exchange difference at settlement instead of burying it in cost of sales, then documented the process so the work does not depend on any one person remembering how it was done.
The result — A food-truck operator running two seasonal units, Red Deer, Alberta
Records rebuilt and reconciled, $11,500 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 2 · Structure rebuilt
Corporate Structure Rebuilt For $35,000 Of Annual Savings — Multi-Processor Online Seller, Regina
Client: An online seller reconciling three payment processors · Where: Regina, Saskatchewan · Engagement: 11 weeks, fixed fee
Saving per year$35,000
DocumentationComplete
Transfer basisRollover
The situation — An online seller reconciling three payment processors, Regina, Saskatchewan
The structure at an online seller reconciling three payment processors in Regina, Saskatchewan had been set up years earlier for a business that no longer existed, and eighteen months of unreconciled transactions and a shoebox of receipts had become expensive.
What we did for An online seller reconciling three payment processors, Regina, Saskatchewan
We separated the owner’s personal spending out of the corporate accounts and cleared the resulting shareholder loan properly. The reorganisation used the rollover provisions rather than a taxable transfer, so no tax fell due on the restructuring itself.
The result — An online seller reconciling three payment processors, Regina, Saskatchewan
$35,000 of annual saving, achieved on a tax-deferred basis. The minute book, elections and valuations are all in the file.
Case Study 3 · Missed incentive claimed
Incentive Review Recovered $82,000 Across 4 Open Years — Subscription Box Retailer, Burnaby
Client: A subscription box retailer · Where: Burnaby, British Columbia · Engagement: 6 weeks, fixed fee
Recovered$82,000
Open years claimed4
Ongoing trackingIn place
The situation — A subscription box retailer, Burnaby, British Columbia
An incentive review at a subscription box retailer in Burnaby, British Columbia started from a simple question: what has never been claimed? The answer ran to 4 years, driven by meals and entertainment coded at full cost with the input tax credit claimed on the whole amount.
What we did for A subscription box retailer, Burnaby, British Columbia
We cleared the payroll and sales tax clearing accounts every month and tied each remittance to the liability it settled, documenting eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result — A subscription box retailer, Burnaby, British Columbia
The credits produced $82,000 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 · Planning that cut the bill
Remuneration Review Saved $73,000 Across Corporate And Personal Returns — Residential Cleaning Franchise, Saskatoon
The situation — A residential cleaning franchise, Saskatoon, Saskatchewan
Nothing was wrong at a residential cleaning franchise in Saskatoon, Saskatchewan — the filings were on time and accurate. What they were not was planned. A receivables list that included invoices collected eleven months earlier had never been reviewed.
What we did for A residential cleaning franchise, Saskatoon, Saskatchewan
We reconciled receivables and payables to source documents and wrote off the balances that were genuinely uncollectible, with support, and ran the numbers across both the corporate and personal returns so the saving was real rather than deferred into someone else's hands.
The result — A residential cleaning franchise, Saskatoon, Saskatchewan
$73,000 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
Case Study 5 · Deadline rescue
6-Week Turnaround Beat The Deadline And Saved $123,000 — Specialty Coffee Roaster, Surrey
Client: A specialty coffee roaster · Where: Surrey, British Columbia · Engagement: 6 weeks, fixed fee
Late-filing penalty avoided$123,000
Filed with17 days to spare
Next yearPapers ready
The situation — A specialty coffee roaster, Surrey, British Columbia
With the deadline for missing transaction reconstruction weeks away, a specialty coffee roaster in Surrey, British Columbia was carrying a payroll clearing account that had never been brought to zero, carrying a balance nobody could explain. The exposure if the date slipped was around $123,000.
What we did for A specialty coffee roaster, Surrey, 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. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — A specialty coffee roaster, Surrey, British Columbia
Filed with 17 days to spare. $123,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 6 · Backlog brought current
6 Years Filed, $64,000 Removed From The Assessed Balance — Dental Hygiene Clinic, Winnipeg
The situation — A dental hygiene clinic, Winnipeg, Manitoba
A dental hygiene clinic in Winnipeg, Manitoba had not filed for 6 years. The CRA had issued arbitrary assessments, and the business was carrying input tax credits claimed on receipts that had already been claimed once on top of a growing interest balance.
What we did for A dental hygiene clinic, Winnipeg, Manitoba
We started with the oldest year and worked forward so each year's closing balances fed the next. We rebuilt sales from the processor settlement reports so gross sales, fees and refunds each landed in an account of their own, filing the years in sequence rather than all at once.
The result — A dental hygiene clinic, Winnipeg, Manitoba
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $64,000 of the estimated balance came off, with a payment arrangement covering the rest.
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.
