6 worked Underused Housing Tax Return 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 underused housing tax return work, not a specific client's file.
Case Study 1 · CRA review defended
$122,000 Proposed Adjustment Withdrawn In Full — Cross-Border SaaS Company, Regina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Adjustment withdrawn$122,000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, Regina, Saskatchewan
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 a sales tax account filed annually while the CRA had moved the business to quarterly. It proposed an adjustment of $122,000, with 30 days to respond.
What we did for A SaaS company with Canadian and US customers, Regina, Saskatchewan
We treated the response as an evidence exercise rather than an argument. We filed the section 156 election for the related registrants, so supplies between them stopped carrying tax that served no purpose but cash-flow drag. We then indexed every supporting document against the specific line the auditor had questioned.
The result — A SaaS company with Canadian and US customers, Regina, Saskatchewan
The proposed adjustment was withdrawn in full — all $122,000 of it.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 — Multi-Province Online Retailer, London
The situation — A multi-province online retailer, London, Ontario
A multi-province online retailer in London, Ontario was weeks away from the deadline for underused housing tax return. Behind that sat management fees between two related registrants carrying tax that only ever went out and came back. The exposure if the date slipped was around $81,000.
What we did for A multi-province online retailer, London, Ontario
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. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — A multi-province online retailer, London, Ontario
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 — Exempt-Supply Clinic, Surrey
Client: A health clinic making exempt supplies · Where: Surrey, British Columbia · Engagement: 4 weeks, fixed fee
Claim value$19,000
AcceptedWithout adjustment
RepeatableAnnually
The situation — A health clinic making exempt supplies, Surrey, British Columbia
A health clinic making exempt supplies in Surrey, British Columbia assumed the credits did not apply to a business its size. Input tax credits claimed on the exempt side of a mixed-supply business meant they had applied all along.
What we did for A health clinic making exempt supplies, Surrey, British Columbia
We identified the qualifying activity and built the documentation to support it. Then we set a defensible input tax credit allocation between taxable and exempt supplies and documented the method for future filings.
The result — A health clinic making exempt supplies, Surrey, British Columbia
$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 — Mixed-Use Landlord, Ottawa
Client: A residential landlord also renting commercial space · Where: Ottawa, Ontario · Engagement: 7 weeks, fixed fee
Months reconciled19
Input tax recovered$4,400
Close time4 days
The situation — A residential landlord also renting commercial space, Ottawa, Ontario
Nothing reconciled at a residential landlord also renting commercial space in Ottawa, Ontario. Every filing started with 19 months of cleanup. The file was carrying nil periods left unfiled, which held up the refund on the one period that mattered.
What we did for A residential landlord also renting commercial space, Ottawa, Ontario
We rebuilt from source rather than correcting on top of the existing file. 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. Then we set the routine that keeps it clean.
The result — A residential landlord also renting commercial space, Ottawa, Ontario
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 — US-Bound Exporter, Vancouver
Client: A manufacturer exporting to the US · Where: Vancouver, British Columbia · Engagement: 6 weeks, fixed fee
Tax deferred$855,000
TransferCompleted
RecordsReview-ready
The situation — A manufacturer exporting to the US, Vancouver, British Columbia
A generational transfer at a manufacturer exporting to the US 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 for A manufacturer exporting to the US, Vancouver, 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 sequenced the steps so each one was complete and documented before the next depended on it.
The result — A manufacturer exporting to the US, Vancouver, British Columbia
$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 restaurant group · Where: Lethbridge, Alberta · Engagement: 3 weeks, fixed fee
Overpayment refunded$102,000
Late remittances sinceZero
ScheduleAutomated
The situation — A restaurant group, Lethbridge, Alberta
Remittances at a restaurant group in Lethbridge, Alberta were consistently late by a few days. That was enough to trigger penalties every quarter. Behind it sat a registration threshold crossed nine months before anyone registered.
What we did for A restaurant group, Lethbridge, Alberta
We assembled the export documentation, restored zero-rating on the qualifying sales, and reduced the proposed assessment. Then we moved the remittance dates into a scheduled process rather than a monthly decision.
The result — A restaurant group, Lethbridge, Alberta
Penalties stopped from the following remittance onwards, and $102,000 of overpaid instalments was refunded.
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.
