6 worked Quality-of-Earnings 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 quality-of-earnings support work, not a specific client's file.
Case Study 1 · Cash and remittance control
Remittance Schedule Corrected, $71,000 Refunded — First Finance Hire, Moncton
Client: A company hiring its first finance staff · Where: Moncton, New Brunswick · Engagement: 5 weeks, fixed fee
Overpayment refunded$71,000
Late remittances sinceZero
ScheduleAutomated
The situation — A company hiring its first finance staff, Moncton, New Brunswick
Remittances at a company hiring its first finance staff in Moncton, New Brunswick were consistently late by a few days. That was enough to trigger penalties every quarter. Behind it sat pricing set by feel, with no visibility into margin by service line.
What we did for A company hiring its first finance staff, Moncton, New Brunswick
We rebuilt the reporting around gross margin by service line, which showed two of five offerings were losing money at the current price. Then we moved the remittance dates into a scheduled process rather than a monthly decision.
The result — A company hiring its first finance staff, Moncton, New Brunswick
Penalties stopped from the following remittance onwards, and $71,000 of overpaid instalments was refunded.
Case Study 2 · Missed incentive claimed
Incentive Review Recovered $63,000 Across 6 Open Years — Subscription Business, Brampton
Client: A subscription business tracking churn · Where: Brampton, Ontario · Engagement: 11 weeks, fixed fee
Recovered$63,000
Open years claimed6
Ongoing trackingIn place
The situation — A subscription business tracking churn, Brampton, Ontario
An incentive review at a subscription business tracking churn in Brampton, Ontario started from a simple question: what has never been claimed? The answer ran to 6 years. It was driven by a monthly report that stopped at the income statement, with no balance sheet and no cash view.
What we did for A subscription business tracking churn, Brampton, Ontario
We built a rolling thirteen-week cash-flow model, tightened collections, and renegotiated supplier terms so the growth stopped consuming the bank balance. We documented eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result — A subscription business tracking churn, Brampton, Ontario
The credits produced $63,000 across the open years. The tracking now in place means the following year's claim is documented as the work happens rather than reconstructed afterwards.
Case Study 3 · Objection and relief
$45,000 Of Penalties And Interest Cancelled On Relief — Multi-Line Service Business, Hamilton
Client: A business whose margin varies by service line · Where: Hamilton, Ontario · Engagement: 3 weeks, fixed fee
Penalties and interest cancelled$45,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — A business whose margin varies by service line, Hamilton, Ontario
An assessment of $45,000 landed at a business whose margin varies by service line in Hamilton, Ontario following a desk review. It turned on an owner making hiring decisions on last quarter’s bank balance. The auditor had not seen the records behind it.
What we did for A business whose margin varies by service line, Hamilton, Ontario
We set a quarterly tax provision, so the instalments and the year-end balance were funded before they came due. We then set out the legislative basis for the position alongside the documents supporting it.
The result — A business whose margin varies by service line, Hamilton, Ontario
$45,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 4 · Planning that cut the bill
$55,000 Cut From The Annual Tax Bill — Practice Adding Partners, Calgary
Client: A professional practice adding partners · Where: Calgary, Alberta · Engagement: 7 weeks, fixed fee
First-year saving$55,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation — A professional practice adding partners, Calgary, Alberta
A professional practice adding partners in Calgary, Alberta was compliant but paying more than it needed to. The prior year had been filed correctly. It still left revenue up 40% year over year and a bank balance that kept falling on the table.
What we did for A professional practice adding partners, Calgary, Alberta
We modelled the current position against the alternatives before changing anything. Then we added the balance sheet and a cash view to the monthly package, so the owner saw working capital move rather than only profit.
The result — A professional practice adding partners, Calgary, Alberta
The change saved $55,000 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 5 · Sale and succession
Share Sale Restructured, $610,000 Less Tax On Closing — Succession-Planning Family Business, Barrie
Client: A family business planning succession · Where: Barrie, Ontario · Engagement: 7 weeks, fixed fee
Tax saved on closing$610,000
PriceAs agreed
Post-closing adjustmentsNone
The situation — A family business planning succession, Barrie, Ontario
A family business planning succession in Barrie, Ontario was preparing to sell. Due diligence surfaced a minute book with no resolutions behind a decade of dividends. That would have reduced the price or killed the deal outright.
What we did for A family business planning succession, Barrie, Ontario
We cleaned up the historical file. We traced each borrowing to what it actually funded and kept the interest deduction on the portion used to earn business income. Then we prepared the due-diligence package the buyer's advisers actually asked for.
The result — A family business planning succession, Barrie, Ontario
The deal closed at the agreed price. $610,000 of tax was saved against the structure originally proposed, with no post-closing adjustment.
Case Study 6 · Deadline rescue
$60,000 Late-Filing Penalty Cancelled On Relief Application — Expanding Manufacturer, Regina
Client: A manufacturer planning a plant expansion · Where: Regina, Saskatchewan · Engagement: 4 weeks, fixed fee
Penalty cancelled$60,000
Relief applicationGranted
ReturnAccepted as filed
The situation — A manufacturer planning a plant expansion, Regina, Saskatchewan
A manufacturer planning a plant expansion in Regina, Saskatchewan had already missed one deadline and was about to miss a second. Behind it sat a covenant breach discovered only when the bank called. A penalty of $60,000 was accruing.
What we did for A manufacturer planning a plant expansion, Regina, Saskatchewan
We split the work into what had to happen before the deadline and what could follow it. Then we separated customer prepayments from earned revenue in the reporting, so the cash position and the tax position were visible at the same time.
The result — A manufacturer planning a plant expansion, Regina, Saskatchewan
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $60,000 of the penalty already assessed on the earlier year.
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.
