6 Personal Tax Audit Support 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 personal tax audit support work, not a general example.
Case Study 1 · Scaling without breaking
Scaled To 43 Staff With $25,000 Of Working Capital Freed — Family Business Under a, Burnaby
Client: A family business under a related-party review · Where: Burnaby, British Columbia · Engagement: 4 weeks, fixed fee
Headcount reached43
Working capital freed$25,000
Missed deadlinesZero
The situation
A family business under a related-party review in Burnaby, British Columbia was growing fast — headcount to 43 in eighteen months — and the back office had not kept up. An objection deadline that had passed with no extension applied for was the first thing to break.
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, and built the compliance calendar for the size the business was becoming rather than the size it had been.
The result
The business reached 43 staff with no missed remittance and no late filing. $25,000 of working capital was freed in the process.
Case Study 2 · Cash and remittance control
Remittance Schedule Corrected, $25,000 Refunded — Taxpayer with Eight Years, Red Deer
Client: A taxpayer with eight years of unfiled returns · Where: Red Deer, Alberta · Engagement: 6 weeks, fixed fee
Overpayment refunded$25,000
Late remittances sinceZero
ScheduleAutomated
The situation
Remittances at a taxpayer with eight years of unfiled returns in Red Deer, Alberta were consistently late by a few days, which was enough to trigger penalties every quarter. Behind it sat a net-worth assessment built on unexplained deposits that were actually loan proceeds.
What we did
We filed the disclosure through the Voluntary Disclosures Program before contact, which removed the gross-negligence penalty entirely, then moved the remittance dates into a scheduled process rather than a monthly decision.
The result
Penalties stopped from the following remittance onwards, and $25,000 of overpaid instalments was refunded.
Case Study 3 · Backlog brought current
$120,000 Of Arbitrary Assessments Vacated After 4 Years — Company Facing a Payroll, Barrie
Client: A company facing a payroll trust examination · Where: Barrie, Ontario · Engagement: 3 weeks, fixed fee
Arbitrary tax vacated$120,000
Years brought current4
Account statusCurrent
The situation
4 years of unfiled returns had turned into notional assessments at a company facing a payroll trust examination in Barrie, Ontario, with a proposal letter with a 30-day response window and no supporting records assembled underneath. Collections had already started.
What we did
We assembled the contemporaneous records, filed a structured response to each proposed adjustment with the supporting documents indexed, and had the proposal withdrawn, then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result
All 4 years were accepted as filed. $120,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 4 years.
Case Study 4 · Planning that cut the bill
$21,000 Saved By Correcting What Prior Filings Had Missed — Restaurant Under a Net-Worth, Toronto
Client: A restaurant under a net-worth audit · Where: Toronto, Ontario · Engagement: 10 weeks, fixed fee
Saving identified$21,000
RecurringYes
Positions documentedAll
The situation
A restaurant under a net-worth audit in Toronto, Ontario asked for a second opinion on personal tax audit support after three years of rising tax. The review found a director liability assessment for a corporation that had already stopped operating.
What we did
We built the comparison first — current structure against two alternatives — and then brought every outstanding return current, then negotiated a payment arrangement that stopped the collections action.
The result
First-year saving of $21,000, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 5 · Structure rebuilt
Holding Structure Added, $25,500 Saved Annually — Business Owner with a, Edmonton
Client: A business owner with a director liability assessment · Where: Edmonton, Alberta · Engagement: 9 weeks, fixed fee
Annual saving$25,500
ReorganisationTax-neutral
StructureMatches operations
The situation
A business owner with a director liability assessment in Edmonton, Alberta was carrying six years of unfiled corporate and personal returns and an active collections file, and every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did
Working with the client's lawyer, we traced each unexplained deposit to its source — loans, transfers between accounts, an insurance settlement — and reduced the net-worth assessment accordingly and prepared the elections, resolutions and valuations the structure needed to stand up.
The result
The structure now matches the business. Annual saving of $25,500, and the reorganisation itself was tax-neutral.
Case Study 6 · Objection and relief
$51,000 Of Penalties And Interest Cancelled On Relief — Importer Under a Customs, Surrey
Client: An importer under a customs and GST audit · Where: Surrey, British Columbia · Engagement: 8 weeks, fixed fee
Penalties and interest cancelled$51,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation
An assessment of $51,000 landed at an importer under a customs and GST audit in Surrey, British Columbia following a desk review. The auditor had not seen the records behind an objection deadline that had passed with no extension applied for.
What we did
We filed the disclosure through the Voluntary Disclosures Program before contact, which removed the gross-negligence penalty entirely, then set out the legislative basis for the position alongside the documents supporting it.
The result
$51,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
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.
