6 worked Montreal 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 Montreal and its provincial tax regime, not a specific client's file.
Case Study 1 · Sale and succession
$740,000 Sheltered By The Lifetime Capital Gains Exemption — Furniture Manufacturer, Montreal
The situation — A furniture manufacturer, Montreal, Quebec
A furniture manufacturer in Montreal, Quebec had an offer on the table and 14 months to close. The shares did not qualify for the capital gains exemption. No valuation on file to support the price the parties had agreed was part of the reason.
What we did for A furniture manufacturer, Montreal, Quebec
We purified the corporation so the shares met the qualifying tests. We recalculated the corporate tax at the 12.2% combined small business rate and rebased the instalments on the current year. All of it was done well ahead of the closing date.
The result — A furniture manufacturer, Montreal, Quebec
The sale closed on schedule with $740,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 2 · Backlog brought current
4 Years Filed, $69,000 Removed From The Assessed Balance — Hardware Startup, Montreal
The situation — A hardware startup, Montreal, Quebec
A hardware startup in Montreal, Quebec had not filed for 4 years. The CRA had issued arbitrary assessments. The business was carrying input tax credits claimed against QC provincial tax, which is not recoverable the way GST is. That came on top of a growing interest balance.
What we did for A hardware startup, Montreal, Quebec
We started with the oldest year and worked forward so each year's closing balances fed the next. We registered the provincial payroll account, caught up the outstanding remittances, and applied for relief on the penalty. We filed the years in sequence rather than all at once.
The result — A hardware startup, Montreal, Quebec
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $69,000 of the estimated balance came off, with a payment arrangement covering the rest.
Case Study 3 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $54,000 Saved Each Year — Solar Installation Company, Montreal
Client: A solar installation company · Where: Montreal, Quebec · Engagement: 10 weeks, fixed fee
Annual saving$54,000
Tax on reorganisationDeferred
Elections filedOn time
The situation — A solar installation company, Montreal, Quebec
A solar installation company in Montreal, Quebec had outgrown the structure it started with. A provincial payroll levy that had never been registered for or remitted was the immediate problem. The longer-term one was that the structure blocked the next step.
What we did for A solar installation company, Montreal, Quebec
We mapped the current structure and modelled the target. Then we assessed and claimed Quebec R&D Salary Tax Credit alongside the federal return. The tax-deferred elections were filed on time and the supporting valuations documented.
The result — A solar installation company, Montreal, Quebec
The reorganisation completed without triggering tax, and the new structure saves approximately $54,000 a year while removing the exposure the old one carried.
Case Study 4 · Objection and relief
Notice Of Objection Allowed In Full, $138,000 Reversed — Millwork Shop, Montreal
A millwork shop in Montreal, Quebec had been reassessed for $138,000. 8 days were left on the objection deadline. The reassessment rested on sector-specific exposure the previous accountant had not seen before.
What we did for A millwork shop, Montreal, Quebec
We filed the objection inside the deadline with a complete submission rather than a placeholder. Alongside it, we assessed and claimed Quebec E-Business Tax Credit (CDAE) alongside the federal return.
The result — A millwork shop, Montreal, Quebec
The appeals officer allowed the objection in full. $138,000 was reversed and the account returned to a nil balance.
Case Study 5 · Deadline rescue
6-Week Turnaround Beat The Deadline And Saved $100,000 — Fintech Startup, Montreal
The situation — A fintech startup, Montreal, Quebec
A fintech startup in Montreal, Quebec was weeks away from the deadline for its QC tax and accounting file. Behind that sat instalments still calculated on a year the business had long outgrown. The exposure if the date slipped was around $100,000.
What we did for A fintech startup, Montreal, Quebec
We separated the federal GST and QC provincial sales tax streams, reconciled both to the sales ledger, and filed the corrected provincial returns. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — A fintech startup, Montreal, Quebec
Filed with 12 days to spare. $100,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 6 · Records and systems rebuilt
Month-End Close Cut From 6 Weeks To 6 Days — Maple and Specialty Crop, Montreal
Client: A maple and specialty crop producer · Where: Montreal, Quebec · Engagement: 11 weeks, fixed fee
Close time before6 weeks
Close time after6 days
Year-endReview, not rebuild
The situation — A maple and specialty crop producer, Montreal, Quebec
The accounting file at a maple and specialty crop producer in Montreal, Quebec had a weak foundation. It was built on provincial sales tax collected but never remitted on the separate QC return. The year-end had taken 6 weeks each of the last three years.
What we did for A maple and specialty crop producer, Montreal, Quebec
We recalculated the corporate tax at the 12.2% combined small business rate and rebased the instalments on the current year. We also moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result — A maple and specialty crop producer, Montreal, Quebec
The file reconciles. Month-end closes in 6 days instead of 6 weeks, and the year-end is a review rather than a reconstruction.
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.
