6 SR&ED Audit Support 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 sr&ed audit support work, not a general example.
Case Study 1 · Structure rebuilt
Holding Structure Added, $18,500 Saved Annually — Corporation Under a GST/HST, Mississauga
Client: A corporation under a GST/HST review · Where: Mississauga, Ontario · Engagement: 4 weeks, fixed fee
Annual saving$18,500
ReorganisationTax-neutral
StructureMatches operations
The situation
A corporation under a GST/HST review in Mississauga, Ontario was carrying an objection deadline that had passed with no extension applied for, 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 brought every outstanding return current, then negotiated a payment arrangement that stopped the collections action and prepared the elections, resolutions and valuations the structure needed to stand up.
The result
The structure now matches the business. Annual saving of $18,500, and the reorganisation itself was tax-neutral.
Case Study 2 · Sale and succession
$775,000 Sheltered By The Lifetime Capital Gains Exemption — Restaurant Under a Net-Worth, Halifax
Client: A restaurant under a net-worth audit · Where: Halifax, Nova Scotia · Engagement: 7 weeks, fixed fee
Gain sheltered$775,000
ClosingOn schedule
Share qualificationMet
The situation
A restaurant under a net-worth audit in Halifax, Nova Scotia had an offer on the table and 30 months to close. The shares did not qualify for the capital gains exemption, and passive assets sitting inside the operating company, disqualifying the shares was part of the reason.
What we did
We purified the corporation so the shares met the qualifying tests, then traced each unexplained deposit to its source — loans, transfers between accounts, an insurance settlement — and reduced the net-worth assessment accordingly well ahead of the closing date.
The result
The sale closed on schedule with $775,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 3 · CRA review defended
Audit Defence Closed In 6 Weeks, $98,000 Cleared — Taxpayer with Frozen Bank, Kitchener
Client: A taxpayer with frozen bank accounts · Where: Kitchener, Ontario · Engagement: 6 weeks, fixed fee
Proposed tax cleared$98,000
Review duration6 weeks
OutcomeNo change
The situation
A taxpayer with frozen bank accounts in Kitchener, Ontario was selected for review after a director liability assessment for a corporation that had already stopped operating showed up in the CRA's automated matching. The proposed adjustment on sr&ed audit support came to $98,000.
What we did
We filed the disclosure through the Voluntary Disclosures Program before contact, which removed the gross-negligence penalty entirely. 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. $98,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 4 · Planning that cut the bill
$67,000 Cut From The Annual Tax Bill — Business Owner with a, Kelowna
Client: A business owner with a director liability assessment · Where: Kelowna, British Columbia · Engagement: 8 weeks, fixed fee
First-year saving$67,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation
A business owner with a director liability assessment in Kelowna, British Columbia was compliant but paying more than it needed to. The prior year had been filed correctly and still left a proposal letter with a 30-day response window and no supporting records assembled on the table.
What we did
We modelled the current position against the alternatives before changing anything, then assembled the contemporaneous records, filed a structured response to each proposed adjustment with the supporting documents indexed, and had the proposal withdrawn.
The result
The change saved $67,000 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 · Records and systems rebuilt
Month-End Close Cut From 8 Weeks To 7 Days — Contractor Facing a Proposed, Edmonton
Client: A contractor facing a proposed reassessment · Where: Edmonton, Alberta · Engagement: 5 weeks, fixed fee
Close time before8 weeks
Close time after7 days
Year-endReview, not rebuild
The situation
The accounting file at a contractor facing a proposed reassessment in Edmonton, Alberta was built on a net-worth assessment built on unexplained deposits that were actually loan proceeds. The year-end had taken 8 weeks each of the last three years.
What we did
We brought every outstanding return current, then negotiated a payment arrangement that stopped the collections action and moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result
The file reconciles. Month-end closes in 7 days instead of 8 weeks, and the year-end is a review rather than a reconstruction.
Case Study 6 · Objection and relief
Notice Of Objection Allowed In Full, $57,000 Reversed — Family Business Under a, Saskatoon
Client: A family business under a related-party review · Where: Saskatoon, Saskatchewan · Engagement: 10 weeks, fixed fee
Amount reversed$57,000
ObjectionAllowed in full
Account balanceNil
The situation
A family business under a related-party review in Saskatoon, Saskatchewan had been reassessed for $57,000 and had 13 days left on the objection deadline. The reassessment rested on an objection deadline that had passed with no extension applied for.
What we did
We filed the objection inside the deadline with a complete submission rather than a placeholder, and traced each unexplained deposit to its source — loans, transfers between accounts, an insurance settlement — and reduced the net-worth assessment accordingly.
The result
The appeals officer allowed the objection in full. $57,000 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.
