6 Multi-Province PST/QST/RST 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 multi-province pst/qst/rst filing work, not a general example.
Case Study 1 · CRA review defended
$80,000 Proposed Adjustment Withdrawn In Full — Construction Supplier Selling Into, Moncton
Client: A construction supplier selling into three provinces · Where: Moncton, New Brunswick · Engagement: 10 weeks, fixed fee
Adjustment withdrawn$80,000
File closed in10 weeks
Penalties assessedNone
The situation
A construction supplier selling into three provinces in Moncton, New Brunswick received a proposal letter opening a review of multi-province pst/qst/rst filing. The CRA had identified input tax credits claimed on the exempt side of a mixed-supply business and proposed an adjustment of $80,000, with 30 days to respond.
What we did
We treated the response as an evidence exercise rather than an argument. We backdated the registration to the day the threshold was crossed, remitted the tax owing, and applied for relief on the penalty portion, then indexed every supporting document against the specific line the auditor had questioned.
The result
The proposed adjustment was withdrawn in full — all $80,000 of it. The file closed in 10 weeks with no change to the assessed amounts and no penalty.
Case Study 2 · Backlog brought current
$15,000 Of Arbitrary Assessments Vacated After 3 Years — Wholesale Food Distributor, Ottawa
3 years of unfiled returns had turned into notional assessments at a wholesale food distributor in Ottawa, Ontario, with a sales tax account filed annually while the CRA had moved the business to quarterly underneath. Collections had already started.
What we did
We assembled the export documentation, restored zero-rating on the qualifying sales, and reduced the proposed assessment, then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result
All 3 years were accepted as filed. $15,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 3 years.
A used-equipment dealer in Kitchener, Ontario had already missed one deadline and was about to miss a second. Behind it sat a registration threshold crossed nine months before anyone registered, and a penalty of $24,500 was accruing.
What we did
We split the work into what had to happen before the deadline and what could follow it, then set a defensible input tax credit allocation between taxable and exempt supplies and documented the method for future filings.
The result
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $24,500 of the penalty already assessed on the earlier year.
Case Study 4 · Planning that cut the bill
$36,500 Saved By Correcting What Prior Filings Had Missed — Freight Brokerage, Calgary
Client: A freight brokerage · Where: Calgary, Alberta · Engagement: 9 weeks, fixed fee
Saving identified$36,500
RecurringYes
Positions documentedAll
The situation
A freight brokerage in Calgary, Alberta asked for a second opinion on multi-province pst/qst/rst filing after three years of rising tax. The review found export sales zero-rated with no shipping documentation behind them.
What we did
We built the comparison first — current structure against two alternatives — and then 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.
The result
First-year saving of $36,500, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 5 · Missed incentive claimed
Incentive Review Recovered $53,000 Across 7 Open Years — Professional Practice with Exempt, London
Client: A professional practice with exempt and taxable supplies · Where: London, Ontario · Engagement: 3 weeks, fixed fee
Recovered$53,000
Open years claimed7
Ongoing trackingIn place
The situation
An incentive review at a professional practice with exempt and taxable supplies in London, Ontario started from a simple question: what has never been claimed? The answer ran to 7 years, driven by a sales tax account filed annually while the CRA had moved the business to quarterly.
What we did
We backdated the registration to the day the threshold was crossed, remitted the tax owing, and applied for relief on the penalty portion, documenting eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result
The credits produced $53,000 across the open years, and the tracking now in place means the following year's claim is documented as the work happens rather than reconstructed afterwards.
Case Study 6 · Structure rebuilt
Corporate Structure Rebuilt For $54,000 Of Annual Savings — SaaS Company with Canadian, Kelowna
Client: A SaaS company with Canadian and US customers · Where: Kelowna, British Columbia · Engagement: 11 weeks, fixed fee
Saving per year$54,000
DocumentationComplete
Transfer basisRollover
The situation
The structure at a SaaS company with Canadian and US customers in Kelowna, British Columbia had been set up years earlier for a business that no longer existed, and input tax credits claimed on the exempt side of a mixed-supply business had become expensive.
What we did
We assembled the export documentation, restored zero-rating on the qualifying sales, and reduced the proposed assessment. The reorganisation used the rollover provisions rather than a taxable transfer, so no tax fell due on the restructuring itself.
The result
$54,000 of annual saving, achieved on a tax-deferred basis. The minute book, elections and valuations are all in the file.
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.
