6 Vacation Pay Calculation 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 vacation pay calculation work, not a general example.
Client: A dental practice · Where: Edmonton, Alberta · Engagement: 3 weeks, fixed fee
Proposed tax cleared$106,000
Review duration3 weeks
OutcomeNo change
The situation
A dental practice in Edmonton, Alberta was selected for review after a director facing a personal assessment for unremitted source deductions showed up in the CRA's automated matching. The proposed adjustment on vacation pay calculation came to $106,000.
What we did
We reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s. 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. $106,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 2 · Sale and succession
$730,000 Sheltered By The Lifetime Capital Gains Exemption — Security Services Contractor, Ottawa
A security services contractor in Ottawa, Ontario had an offer on the table and 13 months to close. The shares did not qualify for the capital gains exemption, and a single shareholder holding every share, with no room to multiply the exemption was part of the reason.
What we did
We purified the corporation so the shares met the qualifying tests, then moved the account to the correct remitter frequency, caught up the arrears, and filed a taxpayer relief request that cancelled the bulk of the penalty well ahead of the closing date.
The result
The sale closed on schedule with $730,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 3 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $37,000 Saved Each Year — Retail Chain Across Two, Winnipeg
Client: A retail chain across two provinces · Where: Winnipeg, Manitoba · Engagement: 4 weeks, fixed fee
Annual saving$37,000
Tax on reorganisationDeferred
Elections filedOn time
The situation
A retail chain across two provinces in Winnipeg, Manitoba had outgrown the structure it started with. Remittances still going out monthly after the business had moved to the accelerated threshold was the immediate problem; the longer-term one was that the structure blocked the next step.
What we did
We mapped the current structure, modelled the target, and reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips — with the tax-deferred elections filed on time and the supporting valuations documented.
The result
The reorganisation completed without triggering tax, and the new structure saves approximately $37,000 a year while removing the exposure the old one carried.
Case Study 4 · Deadline rescue
Filed On Time From A Standing Start, $65,000 Penalty Avoided — Home-Care Agency, Hamilton
A home-care agency in Hamilton, Ontario came to us 10 weeks before its filing deadline with T4s that did not agree to the payroll register or the general ledger. A late filing would have triggered a penalty of roughly $65,000 before interest.
What we did
We worked backwards from the deadline. We reviewed each contractor against the CRA’s control and integration tests, converted those who met the employment tests, and priced the transition before it was forced by a ruling, prioritising the items that actually gated the filing and deferring everything that did not.
The result
The return was filed on time and complete. The $65,000 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Case Study 5 · Cash and remittance control
Instalments Rebased, $22,000 Of Cash Returned To The Business — 30-Employee Manufacturer, Surrey
Client: A 30-employee manufacturer · Where: Surrey, British Columbia · Engagement: 10 weeks, fixed fee
Cash returned$22,000
Instalment basisCurrent year
ReviewedQuarterly
The situation
A 30-employee manufacturer in Surrey, British Columbia was paying instalments calculated on a prior year that no longer reflected the business. Long-term contractors who met every test for employment was tying up $22,000 of cash.
What we did
We rebased the instalments on the current-year estimate rather than the prior-year default, and reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s.
The result
$22,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 6 · Scaling without breaking
Scaled To 23 Staff With $132,000 Of Working Capital Freed — Logistics Operator with Drivers, Halifax
Client: A logistics operator with drivers in three provinces · Where: Halifax, Nova Scotia · Engagement: 10 weeks, fixed fee
Headcount reached23
Working capital freed$132,000
Missed deadlinesZero
The situation
A logistics operator with drivers in three provinces in Halifax, Nova Scotia was growing fast — headcount to 23 in eighteen months — and the back office had not kept up. A director facing a personal assessment for unremitted source deductions was the first thing to break.
What we did
We moved the account to the correct remitter frequency, caught up the arrears, and filed a taxpayer relief request that cancelled the bulk of the penalty, and built the compliance calendar for the size the business was becoming rather than the size it had been.
The result
The business reached 23 staff with no missed remittance and no late filing. $132,000 of working capital was freed in the process.
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.
