6 Project Accounting 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 project accounting work, not a general example.
Case Study 1 · CRA review defended
$72,000 Reassessment Reduced To Nil On Review — Machine-Shop Owner-Operator, Hamilton
A review notice arrived at a machine-shop owner-operator in Hamilton, Ontario covering project accounting for two tax years. The auditor's working position was an adjustment of $72,000, driven by year-end statements that arrived four months late and never tied to the bank.
What we did
Rather than negotiate, we rebuilt the record. We separated personal and corporate spending, cleared the shareholder loan through a documented salary and dividend mix, and restated the comparative year and submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result
The auditor accepted the documented position and closed the review without adjustment, protecting $72,000 and leaving the prior filings undisturbed.
Case Study 2 · Objection and relief
Desk-Review Assessment Of $104,000 Vacated — Boutique Fitness Studio Group, Mississauga
Client: A boutique fitness studio group · Where: Mississauga, Ontario · Engagement: 9 weeks, fixed fee
Assessment vacated$104,000
Supporting recordsNow on file
AccountCleared
The situation
A boutique fitness studio group in Mississauga, Ontario was carrying $104,000 of penalties and interest arising from two sets of numbers — one in the accounting file, one the owner actually ran the business on, much of it accumulated during a period the CRA itself had delayed.
What we did
We reconciled the inter-company accounts, papered the arrangement with a written agreement, and aligned both corporations’ year-ends and framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result
The assessment was vacated. $104,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Case Study 3 · Scaling without breaking
Growth Handled Without A Missed Filing, $142,000 Freed — Specialty Food Importer, Lethbridge
Client: A specialty food importer · Where: Lethbridge, Alberta · Engagement: 10 weeks, fixed fee
Cash freed$142,000
Compliance failuresNone
ReportingMonthly
The situation
A specialty food importer in Lethbridge, Alberta was opening in a second province — different filing obligations, a different payroll regime, and inter-company balances between two related corporations that had never been reconciled already in the file.
What we did
We set a monthly close calendar with a fixed cut-off, so the year-end became a review of work already done rather than a twelve-month rebuild and put monthly reporting in place so the owner could see the cash effect of growth while there was still time to act on it.
The result
Growth was absorbed without a compliance failure. $142,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Client: A growing landscaping company · Where: Moncton, New Brunswick · Engagement: 10 weeks, fixed fee
Annual saving$49,000
ReorganisationTax-neutral
StructureMatches operations
The situation
A growing landscaping company in Moncton, New Brunswick was carrying a bank that refused to renew an operating line without compliant statements, 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 rebuilt the trial balance from source documents, reconciled every bank and credit-card account, and issued a CSRS 4200 compilation with a proper basis-of-accounting note and prepared the elections, resolutions and valuations the structure needed to stand up.
The result
The structure now matches the business. Annual saving of $49,000, and the reorganisation itself was tax-neutral.
Case Study 5 · Planning that cut the bill
$16,500 Saved By Correcting What Prior Filings Had Missed — Family-Owned Wholesale Distributor, Kitchener
A family-owned wholesale distributor in Kitchener, Ontario asked for a second opinion on project accounting after three years of rising tax. The review found a shareholder loan account that had drifted for three years with no supporting entries.
What we did
We built the comparison first — current structure against two alternatives — and then separated personal and corporate spending, cleared the shareholder loan through a documented salary and dividend mix, and restated the comparative year.
The result
First-year saving of $16,500, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 6 · Backlog brought current
Collections Halted And $120,000 Cut From A 6-Year Backlog — 14-Person Design Agency, London
By the time a 14-person design agency in London, Ontario called, 6 years were outstanding and the CRA had assessed on estimates. Underneath it sat year-end statements that arrived four months late and never tied to the bank.
What we did
We reconstructed the records year by year and reconciled the inter-company accounts, papered the arrangement with a written agreement, and aligned both corporations’ year-ends. Each filing replaced an arbitrary assessment with a real one.
The result
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $120,000, and a relief application addressed part of the accumulated interest.
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.
