6 Sales Tax Reconciliation 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 sales tax reconciliation work, not a general example.
Case Study 1 · CRA review defended
Audit Defence Closed In 3 Weeks, $15,000 Cleared — Independent Pharmacy, Vancouver
Client: An independent pharmacy · Where: Vancouver, British Columbia · Engagement: 3 weeks, fixed fee
Proposed tax cleared$15,000
Review duration3 weeks
OutcomeNo change
The situation
An independent pharmacy in Vancouver, British Columbia was selected for review after year-end statements that arrived four months late and never tied to the bank showed up in the CRA's automated matching. The proposed adjustment on sales tax reconciliation came to $15,000.
What we did
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. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result
The review closed with no change. $15,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 2 · Missed incentive claimed
Incentive Review Recovered $114,000 Across 6 Open Years — Boutique Fitness Studio Group, Guelph
Client: A boutique fitness studio group · Where: Guelph, Ontario · Engagement: 5 weeks, fixed fee
Recovered$114,000
Open years claimed6
Ongoing trackingIn place
The situation
An incentive review at a boutique fitness studio group in Guelph, Ontario started from a simple question: what has never been claimed? The answer ran to 6 years, driven by year-end statements that arrived four months late and never tied to the bank.
What we did
We reconciled the inter-company accounts, papered the arrangement with a written agreement, and aligned both corporations’ year-ends, documenting eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result
The credits produced $114,000 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 3 · Sale and succession
Intergenerational Transfer Completed With $870,000 Deferred — 14-Person Design Agency, Windsor
A generational transfer at a 14-person design agency in Windsor, Ontario had been discussed for years without a plan. A shareholder loan balance that would have been picked up as income on closing meant the transfer as contemplated would have been fully taxable.
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, sequencing the steps so each one was complete and documented before the next depended on it.
The result
$870,000 of tax was deferred through the transfer, and the successor generation took over a corporation whose records stood up to review.
Case Study 4 · Backlog brought current
$93,000 Of Arbitrary Assessments Vacated After 7 Years — Growing Landscaping Company, Regina
Client: A growing landscaping company · Where: Regina, Saskatchewan · Engagement: 9 weeks, fixed fee
Arbitrary tax vacated$93,000
Years brought current7
Account statusCurrent
The situation
7 years of unfiled returns had turned into notional assessments at a growing landscaping company in Regina, Saskatchewan, with a shareholder loan account that had drifted for three years with no supporting entries underneath. Collections had already started.
What we did
We separated personal and corporate spending, cleared the shareholder loan through a documented salary and dividend mix, and restated the comparative year, then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result
All 7 years were accepted as filed. $93,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 7 years.
Case Study 5 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $37,000 Saved Each Year — Regional Courier Operator, Saskatoon
A regional courier operator in Saskatoon, Saskatchewan had outgrown the structure it started with. Inter-company balances between two related corporations that had never been reconciled was the immediate problem; the longer-term one was that the structure blocked the next step.
What we did
We mapped the current structure, modelled the target, and 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 — with the tax-deferred elections filed on time and the supporting valuations documented.
The result
The reorganisation completed without triggering tax, and the new structure saves approximately $37,000 a year while removing the exposure the old one carried.
Case Study 6 · Objection and relief
Notice Of Objection Allowed In Full, $131,000 Reversed — Machine-Shop Owner-Operator, Winnipeg
A machine-shop owner-operator in Winnipeg, Manitoba had been reassessed for $131,000 and had 15 days left on the objection deadline. The reassessment rested on year-end statements that arrived four months late and never tied to the bank.
What we did
We filed the objection inside the deadline with a complete submission rather than a placeholder, and reconciled the inter-company accounts, papered the arrangement with a written agreement, and aligned both corporations’ year-ends.
The result
The appeals officer allowed the objection in full. $131,000 was reversed and the account returned to a nil balance.
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.
