6 Net-Worth Audit Assistance tax and accounting engagements in full — what the client came to us with, what we did, and what it was worth. Each one is specific to net-worth audit assistance work, not a general example.
Case Study 1 · CRA review defended
$31,000 Proposed Adjustment Withdrawn In Full — Taxpayer with Frozen Bank, Kitchener
Client: A taxpayer with frozen bank accounts · Where: Kitchener, Ontario · Engagement: 5 weeks, fixed fee
Adjustment withdrawn$31,000
File closed in5 weeks
Penalties assessedNone
The situation
A taxpayer with frozen bank accounts in Kitchener, Ontario received a proposal letter opening a review of net-worth audit assistance. The CRA had identified a director liability assessment for a corporation that had already stopped operating and proposed an adjustment of $31,000, with 30 days to respond.
What we did
We treated the response as an evidence exercise rather than an argument. We brought every outstanding return current, then negotiated a payment arrangement that stopped the collections action, then indexed every supporting document against the specific line the auditor had questioned.
The result
The proposed adjustment was withdrawn in full — all $31,000 of it. The file closed in 5 weeks with no change to the assessed amounts and no penalty.
Case Study 2 · Scaling without breaking
Second-Province Expansion Handled, $115,000 Of Cash Released — Family Business Under a, Windsor
Client: A family business under a related-party review · Where: Windsor, Ontario · Engagement: 5 weeks, fixed fee
Cash released$115,000
New registrationsComplete on day one
Compliance gapsNone
The situation
Revenue at a family business under a related-party review in Windsor, Ontario was up sharply and cash was tighter than ever. Underneath it sat a proposal letter with a 30-day response window and no supporting records assembled.
What we did
We traced each unexplained deposit to its source — loans, transfers between accounts, an insurance settlement — and reduced the net-worth assessment accordingly. Every new obligation — registration, remittance frequency, provincial filing — was set up before it was triggered, not after.
The result
$115,000 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 3 · Planning that cut the bill
$23,500 Cut From The Annual Tax Bill — Importer Under a Customs, Kelowna
Client: An importer under a customs and GST audit · Where: Kelowna, British Columbia · Engagement: 11 weeks, fixed fee
First-year saving$23,500
RepeatsAnnually
Filing positionUnchanged in risk
The situation
An importer under a customs and GST audit in Kelowna, British Columbia was compliant but paying more than it needed to. The prior year had been filed correctly and still left a net-worth assessment built on unexplained deposits that were actually loan proceeds on the table.
What we did
We modelled the current position against the alternatives before changing anything, then filed the disclosure through the Voluntary Disclosures Program before contact, which removed the gross-negligence penalty entirely.
The result
The change saved $23,500 in the first year and repeats annually. Nothing about the filings became more aggressive; the position is simply the one the rules already allowed.
Case Study 4 · Cash and remittance control
Instalments Rebased, $133,000 Of Cash Returned To The Business — Restaurant Under a Net-Worth, Toronto
Client: A restaurant under a net-worth audit · Where: Toronto, Ontario · Engagement: 7 weeks, fixed fee
Cash returned$133,000
Instalment basisCurrent year
ReviewedQuarterly
The situation
A restaurant under a net-worth audit in Toronto, Ontario was paying instalments calculated on a prior year that no longer reflected the business. An objection deadline that had passed with no extension applied for was tying up $133,000 of cash.
What we did
We rebased the instalments on the current-year estimate rather than the prior-year default, and assembled the contemporaneous records, filed a structured response to each proposed adjustment with the supporting documents indexed, and had the proposal withdrawn.
The result
$133,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 5 · Records and systems rebuilt
Books Rebuilt From Source, $2,700 In Unclaimed Input Tax Found — Contractor Facing a Proposed, Mississauga
Client: A contractor facing a proposed reassessment · Where: Mississauga, Ontario · Engagement: 9 weeks, fixed fee
Unclaimed tax found$2,700
Records rebuilt11 months
ProcessDocumented
The situation
A contractor facing a proposed reassessment in Mississauga, Ontario could not answer basic questions about its own numbers, because six years of unfiled corporate and personal returns and an active collections file sat between the bank statements and the ledger.
What we did
We brought every outstanding return current, then negotiated a payment arrangement that stopped the collections action, then documented the process so the work does not depend on any one person remembering how it was done.
The result
Records rebuilt and reconciled, $2,700 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 6 · Deadline rescue
Filed On Time From A Standing Start, $72,000 Penalty Avoided — Taxpayer with Eight Years, Winnipeg
Client: A taxpayer with eight years of unfiled returns · Where: Winnipeg, Manitoba · Engagement: 5 weeks, fixed fee
Penalty avoided$72,000
Turnaround5 weeks
FiledOn time
The situation
A taxpayer with eight years of unfiled returns in Winnipeg, Manitoba came to us 5 weeks before its filing deadline with a director liability assessment for a corporation that had already stopped operating. A late filing would have triggered a penalty of roughly $72,000 before interest.
What we did
We worked backwards from the deadline. We traced each unexplained deposit to its source — loans, transfers between accounts, an insurance settlement — and reduced the net-worth assessment accordingly, prioritising the items that actually gated the filing and deferring everything that did not.
The result
The return was filed on time and complete. The $72,000 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Reviewed for the 2025 tax year by Udit Gupta, Certified Tax Accountant. Figures describe representative engagements of this type; outcomes depend on your own facts. Client names and identifying details are omitted for confidentiality.
