6 worked Multi-Province PST/QST/RST 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 multi-province pst/qst/rst filing work, not a specific client's file.
Case Study 1 · CRA review defended
$80,000 Proposed Adjustment Withdrawn In Full — Interprovincial Construction Supplier, Moncton
Client: A construction supplier selling into three provinces · Where: Moncton, New Brunswick · Engagement: 10 weeks, fixed fee
Adjustment withdrawn$80,000
File closed in10 weeks
Penalties assessedNone
The situation — A construction supplier selling into three provinces, Moncton, New Brunswick
A construction supplier selling into three provinces in Moncton, New Brunswick received a proposal letter opening a review of multi-province PST/QST/RST filing. The CRA had identified a registration threshold crossed nine months before anyone registered. It proposed an adjustment of $80,000, with 30 days to respond.
What we did for A construction supplier selling into three provinces, Moncton, New Brunswick
We treated the response as an evidence exercise rather than an argument. 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. We then indexed every supporting document against the specific line the auditor had questioned.
The result — A construction supplier selling into three provinces, Moncton, New Brunswick
The proposed adjustment was withdrawn in full — all $80,000 of it. The file closed in 10 weeks with no change to the assessed amounts and no penalty.
Case Study 2 · Backlog brought current
$15,000 Of Arbitrary Assessments Vacated After 3 Years — Used-Equipment Dealer, Ottawa
The situation — A used-equipment dealer, Ottawa, Ontario
3 years of unfiled returns had turned into notional assessments at a used-equipment dealer in Ottawa, Ontario. Underneath lay HST charged at the home-province rate on sales into four different provinces. Collections had already started.
What we did for A used-equipment dealer, Ottawa, Ontario
We assembled the export documentation, restored zero-rating on the qualifying sales, and reduced the proposed assessment. We then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result — A used-equipment dealer, Ottawa, Ontario
All 3 years were accepted as filed. $15,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 3 years.
Client: A professional practice with exempt and taxable supplies · Where: Kitchener, Ontario · Engagement: 4 weeks, fixed fee
Penalty cancelled$24,500
Relief applicationGranted
ReturnAccepted as filed
The situation — A professional practice with exempt and taxable supplies, Kitchener, Ontario
A professional practice with exempt and taxable supplies in Kitchener, Ontario had already missed one deadline and was about to miss a second. Behind it sat nil periods left unfiled, which held up the refund on the one period that mattered. A penalty of $24,500 was accruing.
What we did for A professional practice with exempt and taxable supplies, Kitchener, Ontario
We split the work into what had to happen before the deadline and what could follow it. Then we brought the nil and missing periods current so the account was clean before the refund claim was filed.
The result — A professional practice with exempt and taxable supplies, Kitchener, Ontario
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $24,500 of the penalty already assessed on the earlier year.
Case Study 4 · Planning that cut the bill
$36,500 Saved By Correcting What Prior Filings Had Missed — Digital Platform Seller, Calgary
Client: A platform seller collecting tax at checkout · Where: Calgary, Alberta · Engagement: 9 weeks, fixed fee
Saving identified$36,500
RecurringYes
Positions documentedAll
The situation — A platform seller collecting tax at checkout, Calgary, Alberta
A platform seller collecting tax at checkout in Calgary, Alberta asked for a second opinion on multi-province PST/QST/RST filing. That followed three years of rising tax. The review found a commercial property purchase closed on the assumption no tax applied because the vendor was not registered.
What we did for A platform seller collecting tax at checkout, Calgary, Alberta
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 platform seller collecting tax at checkout, Calgary, Alberta
First-year saving of $36,500, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 5 · Missed incentive claimed
Incentive Review Recovered $53,000 Across 7 Open Years — Wholesale Food Distributor, London
The situation — A wholesale food distributor, London, Ontario
An incentive review at a wholesale food distributor in London, Ontario started from a simple question: what has never been claimed? The answer ran to 7 years. It was driven by nil periods left unfiled, which held up the refund on the one period that mattered.
What we did for A wholesale food distributor, London, Ontario
We set a defensible input tax credit allocation between taxable and exempt supplies and documented the method for future filings. We documented eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result — A wholesale food distributor, London, Ontario
The credits produced $53,000 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 6 · Structure rebuilt
Corporate Structure Rebuilt For $54,000 Of Annual Savings — Freight Brokerage, Kelowna
Client: A freight brokerage · Where: Kelowna, British Columbia · Engagement: 11 weeks, fixed fee
Saving per year$54,000
DocumentationComplete
Transfer basisRollover
The situation — A freight brokerage, Kelowna, British Columbia
The structure at a freight brokerage in Kelowna, British Columbia dated from years earlier. It had been set up for a business that no longer existed. A sales tax account filed annually while the CRA had moved the business to quarterly had become expensive.
What we did for A freight brokerage, Kelowna, British Columbia
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. The reorganisation used the rollover provisions rather than a taxable transfer, so no tax fell due on the restructuring itself.
The result — A freight brokerage, Kelowna, British Columbia
$54,000 of annual saving, achieved on a tax-deferred basis. The minute book, elections and valuations are all in the file.
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.
