Client Snapshot
Industry:
Energy Logistics (Fuel Supply Management and Transportation)
Location Served:
Lower Mainland to Hope, Vancouver Island (Canada)
Client Profile:
Mid-sized operator supporting major fuel and rail customers; expanded into LNG delivery
Engagement Scope:
GST/PST audit response, reconciliation, documentation support, compliance stabilization
Key Highlights
Audit Coverage:
Multi-year GST and PST audit scope
Execution:
Comprehensive reconciliation of sales, purchases, and input tax credits
Resolution:
Timely closure with minimal business disruption
Control Upgrade:
Enhanced tax compliance processes and reduced financial risk
Client Background
XYZ is a medium-sized provider in the energy industry, delivering fuel supply management and transportation services. The business supports a broad customer base across multiple geographies and service lines, including expanded operations in LNG delivery. With diverse transaction types and high compliance expectations, accurate tax reporting and documentation discipline are critical to maintaining regulatory alignment and reducing financial risk.
When XYZ received notice of a GST and PST audit covering multiple fiscal years, OHI supported the client through a structured audit response model—focused on reconciliation accuracy, documentation readiness, and proactive communication with tax authorities.
Business Challenge
Multi-year audit scope, complex transactions, and documentation requirements increased compliance pressure and audit-response effort.
Transaction Complexity Across Service Lines
Diverse services created complex sales patterns, increasing reconciliation effort between records and GST/PST filings.
Multi-Year Documentation and Record Readiness
Audit coverage spanning multiple fiscal years required complete, consistent documentation to support filings.
Interpretation of Evolving Tax Regulations
GST and PST rules and interpretations required careful review to ensure treatment aligned with regulatory expectations.
Audit Response Coordination Under Time Pressure
Timely responses to authority queries required disciplined communication, tracking, and stakeholder coordination.
Complex tax audits often strain internal teams because reconciliation and documentation must be audit-defensible across multiple periods. A structured response model was required to reduce disruption, close gaps quickly, and strengthen compliance controls going forward.
OHI's Approach & Solution
Audit Coordination and Communication Model
- Established clear communication channels with tax authorities and internal stakeholders
- Managed requests, timelines, and responses through structured coordination and tracking
Data Analysis and Reconciliation
- Performed detailed analysis of sales and purchase transactions to identify inconsistencies
- Reconciled transactions, tax filings, and input tax credits to isolate discrepancies
Documentation Review and Organization
- Reviewed, organized, and validated invoices, receipts, and supporting records
- Improved documentation readiness to support audit queries and reduce rework
Expert Support and Compliance Stabilization
- Leveraged tax expertise to interpret complex regulation requirements
- Implemented proactive improvements including process reviews, staff training, and updated procedures
Results & Impact
| KPI | Before OHI | After OHI | Improvement |
|---|---|---|---|
| Audit Disruption | High disruption risk during multi-year audit | Structured audit response execution | Minimal business disruption |
| Authority Response Timeliness | Risk of delayed responses to queries | Proactive communication and tracking | Timely resolution support |
| Transaction Reconciliation | Complex sales/purchase activity increased mismatch risk | Comprehensive analysis and reconciliation | Discrepancies identified and addressed |
| Documentation Readiness | Documentation gaps across multiple fiscal years | Organized, complete audit support package | Stronger audit defensibility |
| Compliance Controls | Reactive compliance posture | Improved processes, training, and procedures | Reduced financial risk |
| Regulatory Relationship | Higher friction during audit cycles | Collaborative resolution approach | Improved stakeholder alignment |
OHI resolved the GST and PST audit through disciplined reconciliation, organized documentation support, and proactive communication with tax authorities. The engagement reduced disruption, strengthened compliance processes, and improved the client’s long-term control environment for indirect tax readiness.
“OHI’s structured audit response and documentation discipline helped us resolve GST and PST audit queries quickly while keeping business operations stable.”
Energy Logistics Provide
SVP Finance
Resolve GST/PST audits with audit-ready documentation and strong controls
Strengthen reconciliation discipline, reduce compliance risk, and respond faster to tax authority requests with a structured audit support model.
