6 worked Toronto case studies — the position a client typically comes to us with, what we do, and what it is worth. Each is an illustrative example built on the rules that apply to Toronto and its provincial tax regime, not a specific client's file.
Case Study 1 · Missed incentive claimed
$52,000 In Credits Claimed That Prior Filings Had Missed — Fintech Startup, Toronto
The situation — A fintech startup, Toronto, Ontario
A fintech startup in Toronto, Ontario had been filing for 5 years. In that time, the incentives its activity qualified for were never claimed. Behind that sat Ontario incentives claimed by competitors and never by this business.
What we did for A fintech startup, Toronto, Ontario
We tested each activity against the eligibility criteria rather than the description on the invoice. Then we recalculated the corporate tax at the 12.2% combined small business rate and rebased the instalments on the current year.
The result — A fintech startup, Toronto, Ontario
$52,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 2 · Deadline rescue
$97,000 Late-Filing Penalty Cancelled On Relief Application — Two-Dentist Practice, Toronto
Client: A two-dentist practice · Where: Toronto, Ontario · Engagement: 9 weeks, fixed fee
Penalty cancelled$97,000
Relief applicationGranted
ReturnAccepted as filed
The situation — A two-dentist practice, Toronto, Ontario
A two-dentist practice in Toronto, Ontario had already missed one deadline and was about to miss a second. Behind it sat instalments still calculated on a year the business had long outgrown. A penalty of $97,000 was accruing.
What we did for A two-dentist practice, Toronto, Ontario
We split the work into what had to happen before the deadline and what could follow it. Then we rebuilt the sales ledger by customer location, applied the correct place-of-supply rate to each stream, and filed the adjusted HST returns.
The result — A two-dentist practice, Toronto, Ontario
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $97,000 of the penalty already assessed on the earlier year.
Case Study 3 · CRA review defended
Audit Defence Closed In 6 Weeks, $41,000 Cleared — Physiotherapy Group, Toronto
Client: A physiotherapy group · Where: Toronto, Ontario · Engagement: 6 weeks, fixed fee
Proposed tax cleared$41,000
Review duration6 weeks
OutcomeNo change
The situation — A physiotherapy group, Toronto, Ontario
A physiotherapy group in Toronto, Ontario was selected for review. Sector-specific exposure the previous accountant had not seen before had shown up in the CRA's automated matching. The proposed adjustment on its ON tax and accounting file came to $41,000.
What we did for A physiotherapy group, Toronto, Ontario
We assessed and claimed Ontario Made Manufacturing Investment Tax Credit alongside the federal return. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result — A physiotherapy group, Toronto, Ontario
The review closed with no change. $41,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 4 · Objection and relief
$37,500 Of Penalties And Interest Cancelled On Relief — Veterinary Hospital, Toronto
The situation — A veterinary hospital, Toronto, Ontario
An assessment of $37,500 landed at a veterinary hospital in Toronto, Ontario following a desk review. It turned on a provincial payroll levy that had never been registered for or remitted. The auditor had not seen the records behind it.
What we did for A veterinary hospital, Toronto, Ontario
We assessed and claimed Ontario Innovation Tax Credit alongside the federal return. We then set out the legislative basis for the position alongside the documents supporting it.
The result — A veterinary hospital, Toronto, Ontario
$37,500 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 5 · Scaling without breaking
Growth Handled Without A Missed Filing, $86,000 Freed — Chiropractic Clinic, Toronto
The situation — A chiropractic clinic, Toronto, Ontario
A chiropractic clinic in Toronto, Ontario was opening in a second province. That meant different filing obligations and a different payroll regime. Out-of-province sales billed at the ON rate instead of the customer’s already sat in the file.
What we did for A chiropractic clinic, Toronto, Ontario
We registered the provincial payroll account, caught up the outstanding remittances, and applied for relief on the penalty. We then put monthly reporting in place. That let the owner see the cash effect of growth while there was still time to act on it.
The result — A chiropractic clinic, Toronto, Ontario
Growth was absorbed without a compliance failure. $86,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 6 · Structure rebuilt
Holding Structure Added, $45,000 Saved Annually — Medical Imaging Clinic, Toronto
Client: A medical imaging clinic · Where: Toronto, Ontario · Engagement: 10 weeks, fixed fee
Annual saving$45,000
ReorganisationTax-neutral
StructureMatches operations
The situation — A medical imaging clinic, Toronto, Ontario
The structure at a medical imaging clinic in Toronto, Ontario needed fixing. The file was carrying 13% HST charged on every sale regardless of where the customer was located. Every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did for A medical imaging clinic, Toronto, Ontario
We worked with the client's lawyer. Together, we recalculated the corporate tax at the 12.2% combined small business rate and rebased the instalments on the current year. We also prepared the elections, resolutions and valuations the structure needed to stand up.
The result — A medical imaging clinic, Toronto, Ontario
The structure now matches the business. Annual saving of $45,000, and the reorganisation itself was tax-neutral.
Reviewed by Udit Gupta, Founder and Tax Accountant for the 2025 tax year. These case studies are illustrative worked examples composed from the CRA rules that apply to this type of work, not specific client files; figures are representative and outcomes depend on your own facts.
