Sample Success Stories

• A large multinational manufacturing company with several subsidiaries had its head office in Ontario. The company had been audited and assessed for underpayment of sales tax on its manufacturing products. NMI was brought in to provide a second opinion. NMI reviewed the operations of the company and not only eliminated the assessment, but was able to obtain a refund, resulting in savings of hundreds of thousands of dollars for the company.
• The Provisions of the Excise Tax Act were incorrectly being applied. Upon review of its operations and relations to their customers, NMI determined that sales tax was NOT exigible at all.. NMI was able to obtain a 100% refund of all the sales tax the company had paid for the past four years thereby eliminating the company's future tax liability.
• A national retailer with its head office in Quebec had received an assessment on printed matter shipped to Ontario and BC. NMI was able to substantially reduce the assessment by obtaining favourable rulings on most of the printed matter at issue.
• A provincial auditor assessed a financial institution for taxes for printed matter, imported goods, services, and software, all of which were subject to tax in the opinion of the auditor. NMI was brought to evaluate and analyze the proposed assessment. NMI's review and analysis was instrumental in negotiating and substantially reducing the proposed assessment.
• A non-profit organization was engaging in taxable activity. The company's auditor identified, calculated, and remitted the GST liability. A second opinion was sought from NMI. Our review of the operations revealed that only part of the operations was subject to GST. NMI recalculated the Net GST, which resulted in not only obtaining a substantial refund of GST, but a complete recovery of the GST amount previously paid.
• NMI was engaged by a charitable organization to assist them in a Voluntary Disclosure under the GST and PST provisions. NMI reviewed the activities and operations of the charity and determined that, while PST and GST were collectable on the taxable sales, there was a bigger offsetting refund. PST had been paid in error on purchases that were in fact exempt, and ITC's were available to offset the GST liability. A Voluntary Disclosure saved the charitable organization penalties and interest, as well as a recovery of taxes paid in error.
• A supply and install construction company had been remitting sales tax using a formula developed by provincial auditors. NMI reviewed the formula, and using government administrative policies and the provisions of the Act, a new rate was applied retroactively to the past four years. This recalculation resulted in a significant tax recovery and the new rate reduced future sales tax liability. The company took advantage of the reduced costs to make its tender bids more competitive.
• NMI was engaged by a financial institution to review its GST calculation. NMI determined the ITC allocation rate required modification. NMI's analysis of the services and products sold by the financial institution led to an increase of the ITC allocation rate, resulting in reduced GST liability. During the review, NMI also determined there were other commodity tax (PST HST QST) recoveries available. The financial institution received a substantial recovery.
• A manufacturing company with several divisions was purchasing raw material from one division and accounting for tax on the finished product in another division. The tax for manufacturing for own use was calculated incorrectly, resulting in significant overpayment of sales tax. NMI was brought in to refine and correctly apply the 'fair value' provisions of the sales tax regulations. Using accepted government administrative policies and current tax rulings, NMI was able to substantially reduce the value for tax, and thereby reduce the liability for tax on own use.
• A non-resident US company was exporting goods to a Canadian manufacturer in Canada for further manufacture. The US Company was not registered for GST purposes and paid the GST at the time of importation into Canada. The Canadian manufacturer then further manufactured the goods and sold it back to the US Company for the added value exempt of GST. Neither the US Company nor the Canadian manufacturer could claim an ITC for the GST paid on importation. NMI was able to arrange the transactions in a way that benefited both companies, and the non-resident US Company recovered the GST paid on importation into Canada.
• During a review of a client, NMI identified an issue with respect to sales taxes paid in error. NMI targeted the industry and acted as its spokesperson. NMI negotiated with the tax authorities to obtain a ruling that reduced the tax burden for the entire industry.