6 Underused Housing Tax Return 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 underused housing tax return work, not a general example.
Case Study 1 · CRA review defended
$122,000 Proposed Adjustment Withdrawn In Full — SaaS Company with Canadian, Regina
Client: A SaaS company with Canadian and US customers · Where: Regina, Saskatchewan · Engagement: 10 weeks, fixed fee
Adjustment withdrawn$122,000
File closed in10 weeks
Penalties assessedNone
The situation
A SaaS company with Canadian and US customers in Regina, Saskatchewan received a proposal letter opening a review of underused housing tax return. The CRA had identified export sales zero-rated with no shipping documentation behind them and proposed an adjustment of $122,000, with 30 days to respond.
What we did
We treated the response as an evidence exercise rather than an argument. We rebuilt the sales ledger by customer province, applied the correct place-of-supply rate to each stream, and filed corrected returns before the CRA opened a review, then indexed every supporting document against the specific line the auditor had questioned.
The result
The proposed adjustment was withdrawn in full — all $122,000 of it. The file closed in 10 weeks with no change to the assessed amounts and no penalty.
Case Study 2 · Deadline rescue
6-Week Turnaround Beat The Deadline And Saved $81,000 — Manufacturer Exporting to the, London
Client: A manufacturer exporting to the US · Where: London, Ontario · Engagement: 6 weeks, fixed fee
Late-filing penalty avoided$81,000
Filed with7 days to spare
Next yearPapers ready
The situation
With the deadline for underused housing tax return weeks away, a manufacturer exporting to the US in London, Ontario was carrying a sales tax account filed annually while the CRA had moved the business to quarterly. The exposure if the date slipped was around $81,000.
What we did
We assembled the export documentation, restored zero-rating on the qualifying sales, and reduced the proposed assessment. The filing went in complete rather than provisional, so there was no amended return to follow.
The result
Filed with 7 days to spare. $81,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 3 · Missed incentive claimed
$19,000 Credit Claim Filed And Accepted Without Adjustment — Marketing Agency Billing Outside, Surrey
Client: A marketing agency billing outside its home province · Where: Surrey, British Columbia · Engagement: 4 weeks, fixed fee
Claim value$19,000
AcceptedWithout adjustment
RepeatableAnnually
The situation
A marketing agency billing outside its home province in Surrey, British Columbia assumed the credits did not apply to a business its size. A sales tax account filed annually while the CRA had moved the business to quarterly meant they had applied all along.
What we did
We identified the qualifying activity, built the documentation to support it, and set a defensible input tax credit allocation between taxable and exempt supplies and documented the method for future filings.
The result
$19,000 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
Case Study 4 · Records and systems rebuilt
19 Months Reconciled And $4,400 Of Input Tax Recovered — Multi-Province Online Retailer, Ottawa
A multi-province online retailer in Ottawa, Ontario was carrying a registration threshold crossed nine months before anyone registered. Nothing reconciled, and every filing started with 19 months of cleanup.
What we did
We rebuilt from source rather than correcting on top of the existing file. We backdated the registration to the day the threshold was crossed, remitted the tax owing, and applied for relief on the penalty portion, then set the routine that keeps it clean.
The result
19 months reconciled to the bank. The close now takes 4 days, and $4,400 of previously unclaimable input tax was recovered in the process.
Case Study 5 · Sale and succession
Intergenerational Transfer Completed With $855,000 Deferred — Restaurant Group, Vancouver
Client: A restaurant group · Where: Vancouver, British Columbia · Engagement: 6 weeks, fixed fee
Tax deferred$855,000
TransferCompleted
RecordsReview-ready
The situation
A generational transfer at a restaurant group in Vancouver, British Columbia had been discussed for years without a plan. Passive assets sitting inside the operating company, disqualifying the shares meant the transfer as contemplated would have been fully taxable.
What we did
We rebuilt the sales ledger by customer province, applied the correct place-of-supply rate to each stream, and filed corrected returns before the CRA opened a review, sequencing the steps so each one was complete and documented before the next depended on it.
The result
$855,000 of tax was deferred through the transfer, and the successor generation took over a corporation whose records stood up to review.
Client: A wholesale food distributor · Where: Lethbridge, Alberta · Engagement: 3 weeks, fixed fee
Overpayment refunded$102,000
Late remittances sinceZero
ScheduleAutomated
The situation
Remittances at a wholesale food distributor in Lethbridge, Alberta were consistently late by a few days, which was enough to trigger penalties every quarter. Behind it sat export sales zero-rated with no shipping documentation behind them.
What we did
We assembled the export documentation, restored zero-rating on the qualifying sales, and reduced the proposed assessment, then moved the remittance dates into a scheduled process rather than a monthly decision.
The result
Penalties stopped from the following remittance onwards, and $102,000 of overpaid instalments was refunded.
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.
