6 worked Self-Employed GST/HST Filing 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 self-employed gst/hst filing work, not a specific client's file.
Case Study 1 · CRA review defended
Audit Defence Closed In 10 Weeks, $26,000 Cleared — Interprovincial Construction Supplier, Hamilton
Client: A construction supplier selling into three provinces · Where: Hamilton, Ontario · Engagement: 10 weeks, fixed fee
Proposed tax cleared$26,000
Review duration10 weeks
OutcomeNo change
The situation — A construction supplier selling into three provinces, Hamilton, Ontario
A construction supplier selling into three provinces in Hamilton, Ontario was selected for review. Management fees between two related registrants carrying tax that only ever went out and came back had shown up in the CRA's automated matching. The proposed adjustment on self-employed GST/HST filing came to $26,000.
What we did for A construction supplier selling into three provinces, Hamilton, Ontario
We 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. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result — A construction supplier selling into three provinces, Hamilton, Ontario
The review closed with no change. $26,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 2 · Objection and relief
$97,000 Of Penalties And Interest Cancelled On Relief — Freight Brokerage, Surrey
Client: A freight brokerage · Where: Surrey, British Columbia · Engagement: 8 weeks, fixed fee
Penalties and interest cancelled$97,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — A freight brokerage, Surrey, British Columbia
An assessment of $97,000 landed at a freight brokerage in Surrey, British Columbia following a desk review. It turned on a sales tax account filed annually while the CRA had moved the business to quarterly. The auditor had not seen the records behind it.
What we did for A freight brokerage, Surrey, 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. We then set out the legislative basis for the position alongside the documents supporting it.
The result — A freight brokerage, Surrey, British Columbia
$97,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 3 · Scaling without breaking
Growth Handled Without A Missed Filing, $108,000 Freed — Digital Platform Seller, Halifax
Client: A platform seller collecting tax at checkout · Where: Halifax, Nova Scotia · Engagement: 3 weeks, fixed fee
Cash freed$108,000
Compliance failuresNone
ReportingMonthly
The situation — A platform seller collecting tax at checkout, Halifax, Nova Scotia
A platform seller collecting tax at checkout in Halifax, Nova Scotia was opening in a second province. That meant different filing obligations and a different payroll regime. Export sales zero-rated with no shipping documentation behind them already sat in the file.
What we did for A platform seller collecting tax at checkout, Halifax, Nova Scotia
We backdated the registration to the date the business stopped being a small supplier, remitted the tax owing, and applied for relief on the penalty portion. 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 platform seller collecting tax at checkout, Halifax, Nova Scotia
Growth was absorbed without a compliance failure. $108,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
The situation — A used-equipment dealer, Saskatoon, Saskatchewan
The structure at a used-equipment dealer in Saskatoon, Saskatchewan needed fixing. The file was carrying input tax credits claimed on the exempt side of a mixed-supply business. Every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did for A used-equipment dealer, Saskatoon, Saskatchewan
We worked with the client's lawyer. Together, we assembled the export documentation, restored zero-rating on the qualifying sales, and reduced the proposed assessment. We also prepared the elections, resolutions and valuations the structure needed to stand up.
The result — A used-equipment dealer, Saskatoon, Saskatchewan
The structure now matches the business. Annual saving of $15,500, and the reorganisation itself was tax-neutral.
Case Study 5 · Planning that cut the bill
Remuneration Review Saved $35,000 Across Corporate And Personal Returns — Late GST/HST Registrant, London
Client: A seller who crossed the registration threshold before registering · Where: London, Ontario · Engagement: 8 weeks, fixed fee
Combined saving$35,000
ScopeCorporate + personal
Future yearsNo rework needed
The situation — A seller who crossed the registration threshold before registering, London, Ontario
Nothing was wrong at a seller who crossed the registration threshold before registering in London, Ontario. The filings were on time and accurate. What they were not was planned. A registration threshold crossed nine months before anyone registered had never been reviewed.
What we did for A seller who crossed the registration threshold before registering, London, Ontario
We brought the nil and missing periods current so the account was clean before the refund claim was filed. We ran the numbers across both the corporate and personal returns, so the saving was real rather than deferred into someone else's hands.
The result — A seller who crossed the registration threshold before registering, London, Ontario
$35,000 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
Case Study 6 · Backlog brought current
$32,500 Of Arbitrary Assessments Vacated After 4 Years — Wholesale Food Distributor, Burnaby
Client: A wholesale food distributor · Where: Burnaby, British Columbia · Engagement: 11 weeks, fixed fee
Arbitrary tax vacated$32,500
Years brought current4
Account statusCurrent
The situation — A wholesale food distributor, Burnaby, British Columbia
4 years of unfiled returns had turned into notional assessments at a wholesale food distributor in Burnaby, British Columbia. Underneath lay HST charged at the home-province rate on sales into four different provinces. Collections had already started.
What we did for A wholesale food distributor, Burnaby, British Columbia
We rebuilt the sales ledger by customer province and applied the correct place-of-supply rate to each stream. We filed corrected returns before the CRA opened a review. We then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result — A wholesale food distributor, Burnaby, British Columbia
All 4 years were accepted as filed. $32,500 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 4 years.
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.
