6 worked Provincial Sales-Tax Audit Support 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 provincial sales-tax audit support work, not a specific client's file.
Case Study 1 · Cash and remittance control
Instalments Rebased, $146,000 Of Cash Returned To The Business — Multi-Province Online Retailer, Saskatoon
The situation — A multi-province online retailer, Saskatoon, Saskatchewan
A multi-province online retailer in Saskatoon, Saskatchewan was paying instalments calculated on a prior year that no longer reflected the business. HST charged at the home-province rate on sales into four different provinces was tying up $146,000 of cash.
What we did for A multi-province online retailer, Saskatoon, Saskatchewan
We rebased the instalments on the current-year estimate rather than the prior-year default, and 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.
The result — A multi-province online retailer, Saskatoon, Saskatchewan
$146,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 2 · Planning that cut the bill
$63,000 Cut From The Annual Tax Bill — Freight Brokerage, Barrie
The situation — A freight brokerage, Barrie, Ontario
A freight brokerage in Barrie, Ontario was compliant but paying more than it needed to. The prior year had been filed correctly and still left a commercial property purchase closed on the assumption no tax applied because the vendor was not registered on the table.
What we did for A freight brokerage, Barrie, Ontario
We modelled the current position against the alternatives before changing anything, then brought the nil and missing periods current so the account was clean before the refund claim was filed.
The result — A freight brokerage, Barrie, Ontario
The change saved $63,000 in the first year and repeats annually. Nothing about the filings became more aggressive; the position is simply the one the rules already allowed.
Case Study 3 · Scaling without breaking
Scaled To 41 Staff With $89,000 Of Working Capital Freed — Interprovincial Construction Supplier, Winnipeg
Client: A construction supplier selling into three provinces · Where: Winnipeg, Manitoba · Engagement: 5 weeks, fixed fee
Headcount reached41
Working capital freed$89,000
Missed deadlinesZero
The situation — A construction supplier selling into three provinces, Winnipeg, Manitoba
A construction supplier selling into three provinces in Winnipeg, Manitoba was growing fast — headcount to 41 in eighteen months — and the back office had not kept up. A sales tax account filed annually while the CRA had moved the business to quarterly was the first thing to break.
What we did for A construction supplier selling into three provinces, Winnipeg, Manitoba
We assembled the export documentation, restored zero-rating on the qualifying sales, and reduced the proposed assessment, and built the compliance calendar for the size the business was becoming rather than the size it had been.
The result — A construction supplier selling into three provinces, Winnipeg, Manitoba
The business reached 41 staff with no missed remittance and no late filing. $89,000 of working capital was freed in the process.
Case Study 4 · CRA review defended
Audit Defence Closed In 7 Weeks, $27,500 Cleared — US-Bound Exporter, Red Deer
Client: A manufacturer exporting to the US · Where: Red Deer, Alberta · Engagement: 7 weeks, fixed fee
Proposed tax cleared$27,500
Review duration7 weeks
OutcomeNo change
The situation — A manufacturer exporting to the US, Red Deer, Alberta
A manufacturer exporting to the US in Red Deer, Alberta was selected for review after input tax credits claimed on the exempt side of a mixed-supply business showed up in the CRA's automated matching. The proposed adjustment on provincial sales-tax audit support came to $27,500.
What we did for A manufacturer exporting to the US, Red Deer, Alberta
We backdated the registration to the day the threshold was crossed, remitted the tax owing, and applied for relief on the penalty portion. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result — A manufacturer exporting to the US, Red Deer, Alberta
The review closed with no change. $27,500 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 5 · Missed incentive claimed
Incentive Review Recovered $77,000 Across 3 Open Years — Cross-Border SaaS Company, Vancouver
Client: A SaaS company with Canadian and US customers · Where: Vancouver, British Columbia · Engagement: 9 weeks, fixed fee
Recovered$77,000
Open years claimed3
Ongoing trackingIn place
The situation — A SaaS company with Canadian and US customers, Vancouver, British Columbia
An incentive review at a SaaS company with Canadian and US customers in Vancouver, British Columbia started from a simple question: what has never been claimed? The answer ran to 3 years, driven by HST charged at the home-province rate on sales into four different provinces.
What we did for A SaaS company with Canadian and US customers, Vancouver, British Columbia
We 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, documenting eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result — A SaaS company with Canadian and US customers, Vancouver, British Columbia
The credits produced $77,000 across the open years, and the tracking now in place means the following year's claim is documented as the work happens rather than reconstructed afterwards.
Case Study 6 · Sale and succession
Share Sale Restructured, $460,000 Less Tax On Closing — Mixed-Supply Practice, Burnaby
Client: A professional practice with exempt and taxable supplies · Where: Burnaby, British Columbia · Engagement: 3 weeks, fixed fee
Tax saved on closing$460,000
PriceAs agreed
Post-closing adjustmentsNone
The situation — A professional practice with exempt and taxable supplies, Burnaby, British Columbia
A professional practice with exempt and taxable supplies in Burnaby, British Columbia was preparing to sell. Due diligence surfaced a minute book with no resolutions behind a decade of dividends, which would have reduced the price or killed the deal outright.
What we did for A professional practice with exempt and taxable supplies, Burnaby, British Columbia
We cleaned up the historical file, 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, and prepared the due-diligence package the buyer's advisers actually asked for.
The result — A professional practice with exempt and taxable supplies, Burnaby, British Columbia
The deal closed at the agreed price. $460,000 of tax was saved against the structure originally proposed, with no post-closing adjustment.
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.
