6 worked Reportable Transaction Review 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 reportable transaction review work, not a specific client's file.
Case Study 1 · Records and systems rebuilt
16 Months Reconciled And $5,800 Of Input Tax Recovered — Director Facing Assessment, Toronto
Client: A business owner with a director liability assessment · Where: Toronto, Ontario · Engagement: 11 weeks, fixed fee
Months reconciled16
Input tax recovered$5,800
Close time10 days
The situation — A business owner with a director liability assessment, Toronto, Ontario
Nothing reconciled at a business owner with a director liability assessment in Toronto, Ontario. Every filing started with 16 months of cleanup. The file was carrying an audit conducted over the phone, with nothing on file showing what had been provided or when.
What we did for A business owner with a director liability assessment, Toronto, Ontario
We rebuilt from source rather than correcting on top of the existing file. We filed the Tax Court appeal inside the window and resolved the remaining adjustments before a hearing date was needed. Then we set the routine that keeps it clean.
The result — A business owner with a director liability assessment, Toronto, Ontario
16 months reconciled to the bank. The close now takes 10 days, and $5,800 of previously unclaimable input tax was recovered in the process.
Client: A corporation under a GST/HST review · Where: Calgary, Alberta · Engagement: 5 weeks, fixed fee
Overpayment refunded$69,000
Late remittances sinceZero
ScheduleAutomated
The situation — A corporation under a GST/HST review, Calgary, Alberta
Remittances at a corporation under a GST/HST review in Calgary, Alberta were consistently late by a few days. That was enough to trigger penalties every quarter. Behind it sat six years of unfiled corporate and personal returns and an active collections file.
What we did for A corporation under a GST/HST review, Calgary, Alberta
We filed the disclosure through the Voluntary Disclosures Program before contact, which removed the gross-negligence penalty entirely. Then we moved the remittance dates into a scheduled process rather than a monthly decision.
The result — A corporation under a GST/HST review, Calgary, Alberta
Penalties stopped from the following remittance onwards, and $69,000 of overpaid instalments was refunded.
Case Study 3 · Planning that cut the bill
$26,000 Cut From The Annual Tax Bill — Long-Term Non-Filer, Vancouver
Client: A taxpayer with eight years of unfiled returns · Where: Vancouver, British Columbia · Engagement: 4 weeks, fixed fee
First-year saving$26,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation — A taxpayer with eight years of unfiled returns, Vancouver, British Columbia
A taxpayer with eight years of unfiled returns in Vancouver, British Columbia was compliant but paying more than it needed to. The prior year had been filed correctly. It still left an objection deadline that had passed with no extension applied for on the table.
What we did for A taxpayer with eight years of unfiled returns, Vancouver, British Columbia
We modelled the current position against the alternatives before changing anything. Then we assembled the contemporaneous records, filed a structured response to each proposed adjustment with the supporting documents indexed, and had the proposal withdrawn.
The result — A taxpayer with eight years of unfiled returns, Vancouver, British Columbia
The change saved $26,000 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 4 · Scaling without breaking
Growth Handled Without A Missed Filing, $132,000 Freed — Contractor Facing Reassessment, Mississauga
Client: A contractor facing a proposed reassessment · Where: Mississauga, Ontario · Engagement: 4 weeks, fixed fee
Cash freed$132,000
Compliance failuresNone
ReportingMonthly
The situation — A contractor facing a proposed reassessment, Mississauga, Ontario
A contractor facing a proposed reassessment in Mississauga, Ontario was opening in a second province. That meant different filing obligations and a different payroll regime. A confirmation letter left in a drawer until the appeal window had closed already sat in the file.
What we did for A contractor facing a proposed reassessment, Mississauga, Ontario
We kept the waiver narrowed to the issue actually under review and let the remaining years close on the normal reassessment period. We then put monthly reporting in place. That let the owner see the cash effect of growth while there was still time to act on it.
The result — A contractor facing a proposed reassessment, Mississauga, Ontario
Growth was absorbed without a compliance failure. $132,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 5 · CRA review defended
$29,000 Proposed Adjustment Withdrawn In Full — Restaurant Under Net-Worth Audit, Edmonton
Client: A restaurant under a net-worth audit · Where: Edmonton, Alberta · Engagement: 7 weeks, fixed fee
Adjustment withdrawn$29,000
File closed in7 weeks
Penalties assessedNone
The situation — A restaurant under a net-worth audit, Edmonton, Alberta
A restaurant under a net-worth audit in Edmonton, Alberta received a proposal letter opening a review of reportable transaction review. The CRA had identified a net-worth assessment built on unexplained deposits that were actually loan proceeds. It proposed an adjustment of $29,000, with 30 days to respond.
What we did for A restaurant under a net-worth audit, Edmonton, Alberta
We treated the response as an evidence exercise rather than an argument. We traced each unexplained deposit to its source — loans, transfers between accounts, an insurance settlement — and reduced the net-worth assessment accordingly. We then indexed every supporting document against the specific line the auditor had questioned.
The result — A restaurant under a net-worth audit, Edmonton, Alberta
The proposed adjustment was withdrawn in full — all $29,000 of it. The file closed in 7 weeks with no change to the assessed amounts and no penalty.
Case Study 6 · Missed incentive claimed
$24,000 In Credits Claimed That Prior Filings Had Missed — Taxpayer Relief Applicant, Ottawa
Client: A taxpayer applying for relief from penalties and interest · Where: Ottawa, Ontario · Engagement: 8 weeks, fixed fee
Credits claimed$24,000
Years adjusted5
Review outcomeNo adjustment
The situation — A taxpayer applying for relief from penalties and interest, Ottawa, Ontario
A taxpayer applying for relief from penalties and interest in Ottawa, Ontario had been filing for 5 years. In that time, the incentives its activity qualified for were never claimed. Behind that sat a waiver signed at the counter that kept an otherwise closed year open with no end date.
What we did for A taxpayer applying for relief from penalties and interest, Ottawa, Ontario
We tested each activity against the eligibility criteria rather than the description on the invoice. Then we requested the auditor’s working papers and report to see how the assessment had been built before answering any of it.
The result — A taxpayer applying for relief from penalties and interest, Ottawa, Ontario
$24,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
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.
