6 Purchase and Sale Tax Due Diligence 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 purchase and sale tax due diligence work, not a general example.
Case Study 1 · Scaling without breaking
Scaled To 55 Staff With $95,000 Of Working Capital Freed — Engineering Firm Solving a, Brampton
Client: An engineering firm solving a technical uncertainty · Where: Brampton, Ontario · Engagement: 8 weeks, fixed fee
Headcount reached55
Working capital freed$95,000
Missed deadlinesZero
The situation
An engineering firm solving a technical uncertainty in Brampton, Ontario was growing fast — headcount to 55 in eighteen months — and the back office had not kept up. A filing deadline missed by three weeks, extinguishing the entire claim was the first thing to break.
What we did
We layered the applicable provincial credit onto the federal claim in the same filing, and built the compliance calendar for the size the business was becoming rather than the size it had been.
The result
The business reached 55 staff with no missed remittance and no late filing. $95,000 of working capital was freed in the process.
Case Study 2 · Cash and remittance control
Instalments Rebased, $98,000 Of Cash Returned To The Business — Manufacturer Developing a Production, Kelowna
Client: A manufacturer developing a production process · Where: Kelowna, British Columbia · Engagement: 11 weeks, fixed fee
Cash returned$98,000
Instalment basisCurrent year
ReviewedQuarterly
The situation
A manufacturer developing a production process in Kelowna, British Columbia was paying instalments calculated on a prior year that no longer reflected the business. A provincial credit left unclaimed alongside a successful federal SR&ED claim was tying up $98,000 of cash.
What we did
We rebased the instalments on the current-year estimate rather than the prior-year default, and put contemporaneous tracking in place — project logs tied to time records — so the following year’s claim was defensible by construction.
The result
$98,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 3 · Deadline rescue
6-Week Turnaround Beat The Deadline And Saved $107,000 — Industrial Automation Integrator, Ottawa
With the deadline for purchase and sale tax due diligence weeks away, an industrial automation integrator in Ottawa, Ontario was carrying a claim filed at the 15% non-refundable rate when CCPC status supported 35% refundable. The exposure if the date slipped was around $107,000.
What we did
We identified the eligible projects, documented the technological uncertainty and systematic investigation for each, and filed a claim that survived review without adjustment. The filing went in complete rather than provisional, so there was no amended return to follow.
The result
Filed with 19 days to spare. $107,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 4 · Structure rebuilt
Holding Structure Added, $41,000 Saved Annually — Agri-Tech Company, Regina
Client: An agri-tech company · Where: Regina, Saskatchewan · Engagement: 6 weeks, fixed fee
Annual saving$41,000
ReorganisationTax-neutral
StructureMatches operations
The situation
An agri-tech company in Regina, Saskatchewan was carrying a SR&ED claim prepared eleven months after the fact with no contemporaneous records, 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 confirmed CCPC status and refiled at the enhanced 35% refundable rate and prepared the elections, resolutions and valuations the structure needed to stand up.
The result
The structure now matches the business. Annual saving of $41,000, and the reorganisation itself was tax-neutral.
Case Study 5 · Sale and succession
$800,000 Sheltered By The Lifetime Capital Gains Exemption — Medical Device Developer, Guelph
Client: A medical device developer · Where: Guelph, Ontario · Engagement: 10 weeks, fixed fee
Gain sheltered$800,000
ClosingOn schedule
Share qualificationMet
The situation
A medical device developer in Guelph, Ontario had an offer on the table and 21 months to close. The shares did not qualify for the capital gains exemption, and a single shareholder holding every share, with no room to multiply the exemption was part of the reason.
What we did
We purified the corporation so the shares met the qualifying tests, then layered the applicable provincial credit onto the federal claim in the same filing well ahead of the closing date.
The result
The sale closed on schedule with $800,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 6 · CRA review defended
$49,000 Proposed Adjustment Withdrawn In Full — Clean-Technology Startup, Winnipeg
A clean-technology startup in Winnipeg, Manitoba received a proposal letter opening a review of purchase and sale tax due diligence. The CRA had identified a filing deadline missed by three weeks, extinguishing the entire claim and proposed an adjustment of $49,000, with 30 days to respond.
What we did
We treated the response as an evidence exercise rather than an argument. We put contemporaneous tracking in place — project logs tied to time records — so the following year’s claim was defensible by construction, then indexed every supporting document against the specific line the auditor had questioned.
The result
The proposed adjustment was withdrawn in full — all $49,000 of it. The file closed in 11 weeks with no change to the assessed amounts and no penalty.
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.
