6 worked Non-Resident GST/HST Registration 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 non-resident gst/hst registration work, not a specific client's file.
Case Study 1 · CRA review defended
$43,000 Proposed Adjustment Withdrawn In Full — Freight Brokerage, Lethbridge
Client: A freight brokerage · Where: Lethbridge, Alberta · Engagement: 8 weeks, fixed fee
Adjustment withdrawn$43,000
File closed in8 weeks
Penalties assessedNone
The situation — A freight brokerage, Lethbridge, Alberta
A freight brokerage in Lethbridge, Alberta received a proposal letter opening a review of non-resident gst/hst registration. The CRA had identified management fees between two related registrants carrying tax that only ever went out and came back and proposed an adjustment of $43,000, with 30 days to respond.
What we did for A freight brokerage, Lethbridge, Alberta
We treated the response as an evidence exercise rather than an argument. 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 indexed every supporting document against the specific line the auditor had questioned.
The result — A freight brokerage, Lethbridge, Alberta
The proposed adjustment was withdrawn in full — all $43,000 of it. The file closed in 8 weeks with no change to the assessed amounts and no penalty.
Case Study 2 · Deadline rescue
Filed On Time From A Standing Start, $39,500 Penalty Avoided — Used-Equipment Dealer, Burnaby
Client: A used-equipment dealer · Where: Burnaby, British Columbia · Engagement: 5 weeks, fixed fee
Penalty avoided$39,500
Turnaround5 weeks
FiledOn time
The situation — A used-equipment dealer, Burnaby, British Columbia
A used-equipment dealer in Burnaby, British Columbia came to us 5 weeks before its filing deadline with export sales zero-rated with no shipping documentation behind them. A late filing would have triggered a penalty of roughly $39,500 before interest.
What we did for A used-equipment dealer, Burnaby, British Columbia
We worked backwards from the deadline. We brought the nil and missing periods current so the account was clean before the refund claim was filed, prioritising the items that actually gated the filing and deferring everything that did not.
The result — A used-equipment dealer, Burnaby, British Columbia
The return was filed on time and complete. The $39,500 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Case Study 3 · Missed incentive claimed
$54,000 Credit Claim Filed And Accepted Without Adjustment — Wholesale Food Distributor, Calgary
Client: A wholesale food distributor · Where: Calgary, Alberta · Engagement: 6 weeks, fixed fee
Claim value$54,000
AcceptedWithout adjustment
RepeatableAnnually
The situation — A wholesale food distributor, Calgary, Alberta
A wholesale food distributor in Calgary, Alberta assumed the credits did not apply to a business its size. Nil periods left unfiled, which held up the refund on the one period that mattered meant they had applied all along.
What we did for A wholesale food distributor, Calgary, Alberta
We identified the qualifying activity, built the documentation to support it, and 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.
The result — A wholesale food distributor, Calgary, Alberta
$54,000 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
Case Study 4 · Records and systems rebuilt
14 Months Reconciled And $8,500 Of Input Tax Recovered — Interprovincial Construction Supplier, Regina
Client: A construction supplier selling into three provinces · Where: Regina, Saskatchewan · Engagement: 11 weeks, fixed fee
Months reconciled14
Input tax recovered$8,500
Close time10 days
The situation — A construction supplier selling into three provinces, Regina, Saskatchewan
A construction supplier selling into three provinces in Regina, Saskatchewan was carrying nil periods left unfiled, which held up the refund on the one period that mattered. Nothing reconciled, and every filing started with 14 months of cleanup.
What we did for A construction supplier selling into three provinces, Regina, Saskatchewan
We rebuilt from source rather than correcting on top of the existing file. We rebuilt the sales ledger by customer province, applied the correct place-of-supply rate to each stream, and filed corrected returns before the CRA opened a review, then set the routine that keeps it clean.
The result — A construction supplier selling into three provinces, Regina, Saskatchewan
14 months reconciled to the bank. The close now takes 10 days, and $8,500 of previously unclaimable input tax was recovered in the process.
Case Study 5 · Cross-border exposure resolved
$65,000 Of Double Taxation Removed On Treaty Position — Digital Platform Seller, Mississauga
Client: A platform seller collecting tax at checkout · Where: Mississauga, Ontario · Engagement: 10 weeks, fixed fee
Double tax removed$65,000
DisclosureBrought current
Penalty exposureEliminated
The situation — A platform seller collecting tax at checkout, Mississauga, Ontario
A platform seller collecting tax at checkout in Mississauga, Ontario had US-side activity that the Canadian filings had never addressed. A commercial property purchase closed on the assumption no tax applied because the vendor was not registered meant the same income was being taxed twice.
What we did for A platform seller collecting tax at checkout, Mississauga, Ontario
We established the residency and source position first, then backdated the registration to the day the threshold was crossed, remitted the tax owing, and applied for relief on the penalty portion so the Canadian and foreign filings finally told the same story.
The result — A platform seller collecting tax at checkout, Mississauga, Ontario
$65,000 of double taxation was removed, the disclosure obligations were brought current, and the penalty exposure was eliminated through the voluntary route.
Case Study 6 · Objection and relief
Notice Of Objection Allowed In Full, $45,000 Reversed — Late GST/HST Registrant, Red Deer
Client: A seller who crossed the registration threshold before registering · Where: Red Deer, Alberta · Engagement: 8 weeks, fixed fee
Amount reversed$45,000
ObjectionAllowed in full
Account balanceNil
The situation — A seller who crossed the registration threshold before registering, Red Deer, Alberta
A seller who crossed the registration threshold before registering in Red Deer, Alberta had been reassessed for $45,000 and had 11 days left on the objection deadline. The reassessment rested on a sales tax account filed annually while the CRA had moved the business to quarterly.
What we did for A seller who crossed the registration threshold before registering, Red Deer, Alberta
We filed the objection inside the deadline with a complete submission rather than a placeholder, and set a defensible input tax credit allocation between taxable and exempt supplies and documented the method for future filings.
The result — A seller who crossed the registration threshold before registering, Red Deer, Alberta
The appeals officer allowed the objection in full. $45,000 was reversed and the account returned to a nil balance.
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.
