6 worked Notice of Reassessment Review 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 notice of reassessment review work, not a specific client's file.
Case Study 1 · Records and systems rebuilt
Books Rebuilt From Source, $18,000 In Unclaimed Input Tax Found — Voluntary Disclosure Applicant, Lethbridge
Client: A business owner considering a voluntary disclosure · Where: Lethbridge, Alberta · Engagement: 4 weeks, fixed fee
Unclaimed tax found$18,000
Records rebuilt31 months
ProcessDocumented
The situation — A business owner considering a voluntary disclosure, Lethbridge, Alberta
A business owner considering a voluntary disclosure in Lethbridge, Alberta could not answer basic questions about its own numbers. A waiver signed at the counter that kept an otherwise closed year open with no end date sat between the bank statements and the ledger.
What we did for A business owner considering a voluntary disclosure, Lethbridge, Alberta
We kept the waiver narrowed to the issue actually under review and let the remaining years close on the normal reassessment period. We then documented the process so the work does not depend on any one person remembering how it was done.
The result — A business owner considering a voluntary disclosure, Lethbridge, Alberta
Records rebuilt and reconciled, $18,000 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 2 · CRA review defended
$110,000 Reassessment Reduced To Nil On Review — Assessed Shareholder, Guelph
Client: A shareholder assessed on a taxable benefit · Where: Guelph, Ontario · Engagement: 8 weeks, fixed fee
Reassessment reduced toNil
Tax protected$110,000
Prior filingsUndisturbed
The situation — A shareholder assessed on a taxable benefit, Guelph, Ontario
A review notice arrived at a shareholder assessed on a taxable benefit in Guelph, Ontario, covering notice of reassessment review for two tax years. The auditor's working position was an adjustment of $110,000. It was driven by a proposal letter with a 30-day response window and no supporting records assembled.
What we did for A shareholder assessed on a taxable benefit, Guelph, Ontario
Rather than negotiate, we rebuilt the record. We traced each unexplained deposit to its source — loans, transfers between accounts, an insurance settlement — and reduced the net-worth assessment accordingly. We then submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result — A shareholder assessed on a taxable benefit, Guelph, Ontario
The auditor accepted the documented position and closed the review without adjustment, protecting $110,000 and leaving the prior filings undisturbed.
Case Study 3 · Structure rebuilt
Corporate Structure Rebuilt For $24,000 Of Annual Savings — Taxpayer Relief Applicant, Kelowna
Client: A taxpayer applying for relief from penalties and interest · Where: Kelowna, British Columbia · Engagement: 11 weeks, fixed fee
Saving per year$24,000
DocumentationComplete
Transfer basisRollover
The situation — A taxpayer applying for relief from penalties and interest, Kelowna, British Columbia
The structure at a taxpayer applying for relief from penalties and interest in Kelowna, British Columbia dated from years earlier. It had been set up for a business that no longer existed. A director liability assessment for a corporation that had already stopped operating had become expensive.
What we did for A taxpayer applying for relief from penalties and interest, Kelowna, British Columbia
We requested the auditor’s working papers and report to see how the assessment had been built before answering any of it. The reorganisation used the rollover provisions rather than a taxable transfer, so no tax fell due on the restructuring itself.
The result — A taxpayer applying for relief from penalties and interest, Kelowna, British Columbia
$24,000 of annual saving, achieved on a tax-deferred basis. The minute book, elections and valuations are all in the file.
Case Study 4 · Cash and remittance control
$80,000 Of Working Capital Freed From The Tax Cycle — Restaurant Under Net-Worth Audit, Barrie
Client: A restaurant under a net-worth audit · Where: Barrie, Ontario · Engagement: 6 weeks, fixed fee
Working capital freed$80,000
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation — A restaurant under a net-worth audit, Barrie, Ontario
A restaurant under a net-worth audit in Barrie, Ontario was profitable on paper and short of cash every month. An audit conducted over the phone, with nothing on file showing what had been provided or when explained most of the gap.
What we did for A restaurant under a net-worth audit, Barrie, Ontario
We answered each query in writing with an indexed document package, so the file showed exactly what the auditor had received and on what date. We also built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result — A restaurant under a net-worth audit, Barrie, Ontario
$80,000 was released back into working capital. Remittances have been on time every period since, and the forecast shows the tax outflow before it lands.
Case Study 5 · Missed incentive claimed
$100,000 Credit Claim Filed And Accepted Without Adjustment — Contractor Facing Reassessment, Moncton
Client: A contractor facing a proposed reassessment · Where: Moncton, New Brunswick · Engagement: 4 weeks, fixed fee
Claim value$100,000
AcceptedWithout adjustment
RepeatableAnnually
The situation — A contractor facing a proposed reassessment, Moncton, New Brunswick
A contractor facing a proposed reassessment in Moncton, New Brunswick assumed the credits did not apply to a business its size. A waiver signed at the counter that kept an otherwise closed year open with no end date meant they had applied all along.
What we did for A contractor facing a proposed reassessment, Moncton, New Brunswick
We identified the qualifying activity and built the documentation to support it. Then we brought every outstanding return current, then negotiated a payment arrangement that stopped the collections action.
The result — A contractor facing a proposed reassessment, Moncton, New Brunswick
$100,000 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
Case Study 6 · Objection and relief
Desk-Review Assessment Of $37,500 Vacated — Long-Term Non-Filer, Windsor
Client: A taxpayer with eight years of unfiled returns · Where: Windsor, Ontario · Engagement: 3 weeks, fixed fee
Assessment vacated$37,500
Supporting recordsNow on file
AccountCleared
The situation — A taxpayer with eight years of unfiled returns, Windsor, Ontario
A taxpayer with eight years of unfiled returns in Windsor, Ontario was carrying $37,500 of penalties and interest. The charges arose from an objection deadline that had passed with no extension applied for. Much of that amount accumulated during a period the CRA itself had delayed.
What we did for A taxpayer with eight years of unfiled returns, Windsor, Ontario
We filed the Tax Court appeal inside the window and resolved the remaining adjustments before a hearing date was needed. We framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result — A taxpayer with eight years of unfiled returns, Windsor, Ontario
The assessment was vacated. $37,500 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
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.
