6 worked New Housing Rebate Assistance 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 new housing rebate assistance work, not a specific client's file.
Case Study 1 · Records and systems rebuilt
Books Rebuilt From Source, $4,100 In Unclaimed Input Tax Found — Digital Platform Seller, Halifax
Client: A platform seller collecting tax at checkout · Where: Halifax, Nova Scotia · Engagement: 6 weeks, fixed fee
Unclaimed tax found$4,100
Records rebuilt21 months
ProcessDocumented
The situation — A platform seller collecting tax at checkout, Halifax, Nova Scotia
A platform seller collecting tax at checkout in Halifax, Nova Scotia could not answer basic questions about its own numbers, because nil periods left unfiled, which held up the refund on the one period that mattered sat between the bank statements and the ledger.
What we did for A platform seller collecting tax at checkout, Halifax, Nova Scotia
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, then documented the process so the work does not depend on any one person remembering how it was done.
The result — A platform seller collecting tax at checkout, Halifax, Nova Scotia
Records rebuilt and reconciled, $4,100 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 2 · Deadline rescue
5-Week Turnaround Beat The Deadline And Saved $91,000 — Interprovincial Construction Supplier, Winnipeg
Client: A construction supplier selling into three provinces · Where: Winnipeg, Manitoba · Engagement: 5 weeks, fixed fee
Late-filing penalty avoided$91,000
Filed with20 days to spare
Next yearPapers ready
The situation — A construction supplier selling into three provinces, Winnipeg, Manitoba
With the deadline for new housing rebate assistance weeks away, a construction supplier selling into three provinces in Winnipeg, Manitoba was carrying a sales tax account filed annually while the CRA had moved the business to quarterly. The exposure if the date slipped was around $91,000.
What we did for A construction supplier selling into three provinces, Winnipeg, Manitoba
We brought the nil and missing periods current so the account was clean before the refund claim was filed. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — A construction supplier selling into three provinces, Winnipeg, Manitoba
Filed with 20 days to spare. $91,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 3 · Objection and relief
$38,500 Of Penalties And Interest Cancelled On Relief — Wholesale Food Distributor, Mississauga
The situation — A wholesale food distributor, Mississauga, Ontario
An assessment of $38,500 landed at a wholesale food distributor in Mississauga, Ontario following a desk review. The auditor had not seen the records behind a registration threshold crossed nine months before anyone registered.
What we did for A wholesale food distributor, Mississauga, Ontario
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, then set out the legislative basis for the position alongside the documents supporting it.
The result — A wholesale food distributor, Mississauga, Ontario
$38,500 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 4 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $38,500 Saved Each Year — Used-Equipment Dealer, Toronto
The situation — A used-equipment dealer, Toronto, Ontario
A used-equipment dealer in Toronto, Ontario had outgrown the structure it started with. A commercial property purchase closed on the assumption no tax applied because the vendor was not registered was the immediate problem; the longer-term one was that the structure blocked the next step.
What we did for A used-equipment dealer, Toronto, Ontario
We mapped the current structure, modelled the target, and filed the section 156 election for the related registrants, so supplies between them stopped carrying tax that served no purpose but cash-flow drag — with the tax-deferred elections filed on time and the supporting valuations documented.
The result — A used-equipment dealer, Toronto, Ontario
The reorganisation completed without triggering tax, and the new structure saves approximately $38,500 a year while removing the exposure the old one carried.
Case Study 5 · Backlog brought current
4 Years Filed, $103,000 Removed From The Assessed Balance — Freight Brokerage, Kelowna
Client: A freight brokerage · Where: Kelowna, British Columbia · Engagement: 7 weeks, fixed fee
Years filed4
Assessed balance removed$103,000
CollectionsStopped
The situation — A freight brokerage, Kelowna, British Columbia
A freight brokerage in Kelowna, British Columbia had not filed for 4 years. The CRA had issued arbitrary assessments, and the business was carrying export sales zero-rated with no shipping documentation behind them on top of a growing interest balance.
What we did for A freight brokerage, Kelowna, British Columbia
We started with the oldest year and worked forward so each year's closing balances fed the next. We assembled the export documentation, restored zero-rating on the qualifying sales, and reduced the proposed assessment, filing the years in sequence rather than all at once.
The result — A freight brokerage, Kelowna, British Columbia
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $103,000 of the estimated balance came off, with a payment arrangement covering the rest.
Case Study 6 · Sale and succession
$420,000 Sheltered By The Lifetime Capital Gains Exemption — Mixed-Supply Practice, Windsor
Client: A professional practice with exempt and taxable supplies · Where: Windsor, Ontario · Engagement: 5 weeks, fixed fee
Gain sheltered$420,000
ClosingOn schedule
Share qualificationMet
The situation — A professional practice with exempt and taxable supplies, Windsor, Ontario
A professional practice with exempt and taxable supplies in Windsor, Ontario had an offer on the table and 16 months to close. The shares did not qualify for the capital gains exemption, and passive assets sitting inside the operating company, disqualifying the shares was part of the reason.
What we did for A professional practice with exempt and taxable supplies, Windsor, Ontario
We purified the corporation so the shares met the qualifying tests, then set a defensible input tax credit allocation between taxable and exempt supplies and documented the method for future filings well ahead of the closing date.
The result — A professional practice with exempt and taxable supplies, Windsor, Ontario
The sale closed on schedule with $420,000 sheltered by the lifetime capital gains exemption across the shareholders.
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.
