6 Self-Employed GST/HST Filing 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 self-employed gst/hst filing work, not a general example.
Case Study 1 · CRA review defended
Audit Defence Closed In 10 Weeks, $26,000 Cleared — Food-Truck Sole Proprietorship, Hamilton
Client: A food-truck sole proprietorship · Where: Hamilton, Ontario · Engagement: 10 weeks, fixed fee
Proposed tax cleared$26,000
Review duration10 weeks
OutcomeNo change
The situation
A food-truck sole proprietorship in Hamilton, Ontario was selected for review after a partnership that crossed the T5013 threshold two years before anyone noticed showed up in the CRA's automated matching. The proposed adjustment on self-employed gst/hst filing came to $26,000.
What we did
We restructured the draw policy so no partner’s adjusted cost base went negative again, and reported the deemed gain correctly for the year it arose. 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. $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 — Freelance Developer, Surrey
Client: A freelance developer · Where: Surrey, British Columbia · Engagement: 8 weeks, fixed fee
Penalties and interest cancelled$97,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation
An assessment of $97,000 landed at a freelance developer in Surrey, British Columbia following a desk review. The auditor had not seen the records behind a profit split applied in practice that the written agreement did not support.
What we did
We filed the section 85 election with correct elected amounts and rolled the assets in without a taxable disposition, then set out the legislative basis for the position alongside the documents supporting it.
The result
$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 — Unincorporated Trades Business, Halifax
Client: An unincorporated trades business · Where: Halifax, Nova Scotia · Engagement: 3 weeks, fixed fee
Cash freed$108,000
Compliance failuresNone
ReportingMonthly
The situation
An unincorporated trades business in Halifax, Nova Scotia was opening in a second province — different filing obligations, a different payroll regime, and an incorporation completed without the section 85 election, triggering an unnecessary gain already in the file.
What we did
We rewrote the partnership allocation to match how the practice actually operated, effective for the following fiscal year and put monthly reporting in place so the owner could see the cash effect of growth while there was still time to act on it.
The result
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.
Client: A three-partner medical clinic · Where: Saskatoon, Saskatchewan · Engagement: 3 weeks, fixed fee
Annual saving$15,500
ReorganisationTax-neutral
StructureMatches operations
The situation
A three-partner medical clinic in Saskatoon, Saskatchewan was carrying partner draws that had pushed one partner’s adjusted cost base negative, 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 filed the outstanding T5013 returns with full partner allocations and requested penalty relief on the basis of the first-time nature of the failure and prepared the elections, resolutions and valuations the structure needed to stand up.
The result
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 — Husband-And-Wife Retail Partnership, London
Nothing was wrong at a husband-and-wife retail partnership in London, Ontario — the filings were on time and accurate. What they were not was planned. Business income reported entirely on one spouse’s return despite shared operations had never been reviewed.
What we did
We restructured the draw policy so no partner’s adjusted cost base went negative again, and reported the deemed gain correctly for the year it arose, and 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
$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 — Two-Partner Architecture Practice, Burnaby
Client: A two-partner architecture practice · Where: Burnaby, British Columbia · Engagement: 11 weeks, fixed fee
Arbitrary tax vacated$32,500
Years brought current4
Account statusCurrent
The situation
4 years of unfiled returns had turned into notional assessments at a two-partner architecture practice in Burnaby, British Columbia, with a partnership that crossed the T5013 threshold two years before anyone noticed underneath. Collections had already started.
What we did
We filed the section 85 election with correct elected amounts and rolled the assets in without a taxable disposition, then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result
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 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.
