6 worked Notice to Reader 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 notice to reader assistance work, not a specific client's file.
Case Study 1 · Backlog brought current
$78,000 Of Arbitrary Assessments Vacated After 7 Years — Business Preparing for Sale, Kelowna
Client: A business preparing for sale · Where: Kelowna, British Columbia · Engagement: 8 weeks, fixed fee
Arbitrary tax vacated$78,000
Years brought current7
Account statusCurrent
The situation — A business preparing for sale, Kelowna, British Columbia
7 years of unfiled returns had turned into notional assessments at a business preparing for sale in Kelowna, British Columbia. Underneath lay a prior-year restatement with no note explaining what changed. Collections had already started.
What we did for A business preparing for sale, Kelowna, British Columbia
We prepared a due-diligence-ready statement set with supporting schedules for each material balance. We then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result — A business preparing for sale, Kelowna, British Columbia
All 7 years were accepted as filed. $78,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 7 years.
Case Study 2 · Records and systems rebuilt
Books Rebuilt From Source, $18,500 In Unclaimed Input Tax Found — Restating Corporation, Surrey
Client: A corporation restating a prior year · Where: Surrey, British Columbia · Engagement: 6 weeks, fixed fee
Unclaimed tax found$18,500
Records rebuilt16 months
ProcessDocumented
The situation — A corporation restating a prior year, Surrey, British Columbia
A corporation restating a prior year in Surrey, British Columbia could not answer basic questions about its own numbers. A bonding limit capped because the last statements were prepared on a cash basis sat between the bank statements and the ledger.
What we did for A corporation restating a prior year, Surrey, British Columbia
We described the revenue and inventory policies in the basis-of-accounting note in terms a lender could follow without asking a question. We then documented the process so the work does not depend on any one person remembering how it was done.
The result — A corporation restating a prior year, Surrey, British Columbia
Records rebuilt and reconciled, $18,500 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 3 · CRA review defended
$49,000 Proposed Adjustment Withdrawn In Full — Covenant-Bound Borrower, Moncton
Client: A company under a bank covenant · Where: Moncton, New Brunswick · Engagement: 4 weeks, fixed fee
Adjustment withdrawn$49,000
File closed in4 weeks
Penalties assessedNone
The situation — A company under a bank covenant, Moncton, New Brunswick
A company under a bank covenant in Moncton, New Brunswick received a proposal letter opening a review of notice to reader assistance. The CRA had identified statements delivered five months after year-end, past the covenant deadline. It proposed an adjustment of $49,000, with 30 days to respond.
What we did for A company under a bank covenant, Moncton, New Brunswick
We treated the response as an evidence exercise rather than an argument. We prepared the supporting schedule for every material balance in advance, which cut the queries the engagement had to raise. We then indexed every supporting document against the specific line the auditor had questioned.
The result — A company under a bank covenant, Moncton, New Brunswick
The proposed adjustment was withdrawn in full — all $49,000 of it. The file closed in 4 weeks with no change to the assessed amounts and no penalty.
Client: A contractor bidding on bonded work · Where: Winnipeg, Manitoba · Engagement: 7 weeks, fixed fee
Annual saving$51,000
ReorganisationTax-neutral
StructureMatches operations
The situation — A contractor bidding on bonded work, Winnipeg, Manitoba
The structure at a contractor bidding on bonded work in Winnipeg, Manitoba needed fixing. The file was carrying a bank asking for a review engagement while the file only supported a compilation. Every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did for A contractor bidding on bonded work, Winnipeg, Manitoba
We worked with the client's lawyer. Together, we converted the records to the accrual basis, restated the comparative year with proper disclosure, and rebuilt the statement package around the bonding company’s requirements. We also prepared the elections, resolutions and valuations the structure needed to stand up.
The result — A contractor bidding on bonded work, Winnipeg, Manitoba
The structure now matches the business. Annual saving of $51,000, and the reorganisation itself was tax-neutral.
Case Study 5 · Cash and remittance control
Instalments Rebased, $140,000 Of Cash Returned To The Business — Due-Diligence Vendor, Victoria
Client: A vendor assembling due-diligence records · Where: Victoria, British Columbia · Engagement: 10 weeks, fixed fee
Cash returned$140,000
Instalment basisCurrent year
ReviewedQuarterly
The situation — A vendor assembling due-diligence records, Victoria, British Columbia
A vendor assembling due-diligence records in Victoria, British Columbia was paying instalments calculated on a prior year. That year no longer reflected the business. An insurer asking for statements from an independent practitioner who had also been writing the bookkeeping entries was tying up $140,000 of cash.
What we did for A vendor assembling due-diligence records, Victoria, British Columbia
We rebased the instalments on the current-year estimate rather than the prior-year default. Alongside that, we read the shareholder agreement and the loan documents and established what level of assurance each user actually required. We scoped the engagement to the highest of them.
The result — A vendor assembling due-diligence records, Victoria, British Columbia
$140,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 6 · Missed incentive claimed
$135,000 Credit Claim Filed And Accepted Without Adjustment — Shareholder Buyout Corporation, Edmonton
Client: A corporation entering a shareholder buyout · Where: Edmonton, Alberta · Engagement: 6 weeks, fixed fee
Claim value$135,000
AcceptedWithout adjustment
RepeatableAnnually
The situation — A corporation entering a shareholder buyout, Edmonton, Alberta
A corporation entering a shareholder buyout in Edmonton, Alberta assumed the credits did not apply to a business its size. A shareholder agreement calling for audited statements that had been satisfied with a compilation for years meant they had applied all along.
What we did for A corporation entering a shareholder buyout, Edmonton, Alberta
We identified the qualifying activity and built the documentation to support it. Then we separated the bookkeeping work from the assurance engagement so the independence question had one clear answer.
The result — A corporation entering a shareholder buyout, Edmonton, Alberta
$135,000 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
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.
