How We Helped a Toronto Electrical Company File Late GST/HST Returns and Obtain CRA Penalty Relief After the Owner’s Passing

Short Summary

A family-owned electrical contracting business in Toronto contacted us after the sudden passing of its owner left the company without financial leadership for over a year. As a result, GST/HST returns had not been filed for multiple reporting periods, and CRA penalties and interest had grown to more than $CAD 18,000. Our team reconstructed the company’s records, filed all overdue GST/HST returns, and submitted a Taxpayer Relief request to CRA. The company returned to compliance quickly, and when CRA later approved a substantial cancellation of penalties and interest, it provided a much-needed cash flow boost that allowed the business to stabilize operations and invest in ongoing projects.

About the Client

• Business Type: Electrical contracting company
• Location: Toronto, Ontario
• Previous Setup: Paper-based invoicing, bookkeeping handled solely by the late owner
• Main Problems:
  • GST/HST filings overdue for six consecutive periods
  • CRA late-filing penalties and interest totaling over $CAD 18,000
  • Disorganized and incomplete sales/expense records
  • No accounting system after owner’s death

Client Goals

• File all overdue GST/HST returns quickly and accurately
• Request CRA relief for penalties and interest due to exceptional circumstances
• Free up cash flow by reducing or eliminating penalty balances
• Implement a bookkeeping system for staff can manage going forward
• Restore CRA compliance and maintain good standing

What We Did

Step 1: Record Reconstruction

We gathered invoices, bank statements, and supplier records from the company’s files and reconciled them to rebuild accurate sales and expense data for each missed reporting period.

Step 2: Filing Backlog Clearance

We prepared and filed all overdue GST/HST returns, ensuring calculations aligned with CRA records to avoid further reassessments.

Step 3: Taxpayer Relief Application

We completed CRA Form RC4288, citing the exceptional circumstance of the owner’s passing, and included supporting documentation such as the death certificate and corporate transition records. We also explained the CRA review process, so the family understood what to expect.

Step 4: Future Compliance Setup

We implemented QuickBooks Online for automated bookkeeping and GST/HST tracking, trained the office administrator, and set up quarterly filing reminders to ensure no future delays.

Accountor CPA Results

• All overdue GST/HST returns filed promptly and accurately
• CRA approved relief, reversing $CAD 14,500 in penalties and interest
• Freed up $CAD 14,500 in cash flow, which was redirected toward equipment purchases and operating costs
• Business restored to full compliance and good standing
• Automated system reduced admin time and prevented future late filings

Summary

If your business has fallen behind on GST/HST filings due to unexpected events, our team can help you catch up, request CRA relief, and free up valuable cash flow — just like we did for this Toronto-based electrical company. Contact us today to get started.