6 Amalgamation Tax Return tax and accounting engagements in full — what the client came to us with, what we did, and what it was worth. Each one is specific to amalgamation tax return work, not a general example.
Client: An incorporated trades business · Where: Guelph, Ontario · Engagement: 3 weeks, fixed fee
Penalty cancelled$134,000
Relief applicationGranted
ReturnAccepted as filed
The situation
An incorporated trades business in Guelph, Ontario had already missed one deadline and was about to miss a second. Behind it sat retained earnings building in the operating company with no plan for extracting them, and a penalty of $134,000 was accruing.
What we did
We split the work into what had to happen before the deadline and what could follow it, then mapped the association rules across the group, allocated the business limit deliberately on Schedule 23, and corrected the prior year by adjustment request.
The result
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $134,000 of the penalty already assessed on the earlier year.
Case Study 2 · Cash and remittance control
$135,000 Of Working Capital Freed From The Tax Cycle — Corporately-Owned Rental Portfolio, Lethbridge
Client: A corporately-owned rental portfolio · Where: Lethbridge, Alberta · Engagement: 7 weeks, fixed fee
Working capital freed$135,000
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation
A corporately-owned rental portfolio in Lethbridge, Alberta was profitable on paper and short of cash every month. A small business limit quietly shared across three associated corporations nobody had mapped explained most of the gap.
What we did
We rebuilt the instalment schedule off the current year rather than the prior year, ending the interest accrual and built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result
$135,000 was released back into working capital. Remittances have been on time every period since, and the forecast shows the tax outflow before it lands.
Case Study 3 · Scaling without breaking
Growth Handled Without A Missed Filing, $125,000 Freed — Franchise Operator with Three, Toronto
Client: A franchise operator with three locations · Where: Toronto, Ontario · Engagement: 4 weeks, fixed fee
Cash freed$125,000
Compliance failuresNone
ReportingMonthly
The situation
A franchise operator with three locations in Toronto, Ontario was opening in a second province — different filing obligations, a different payroll regime, and passive investment income that had crossed the $50,000 grind threshold unnoticed already in the file.
What we did
We moved passive holdings into a separate structure so the operating company’s small business limit stopped grinding down and put monthly reporting in place so the owner could see the cash effect of growth while there was still time to act on it.
The result
Growth was absorbed without a compliance failure. $125,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 4 · Missed incentive claimed
Incentive Review Recovered $102,000 Across 6 Open Years — Professional Corporation, Calgary
Client: A professional corporation · Where: Calgary, Alberta · Engagement: 6 weeks, fixed fee
Recovered$102,000
Open years claimed6
Ongoing trackingIn place
The situation
An incentive review at a professional corporation in Calgary, Alberta started from a simple question: what has never been claimed? The answer ran to 6 years, driven by passive investment income that had crossed the $50,000 grind threshold unnoticed.
What we did
We modelled salary against dividends across both the corporation and the shareholder’s personal return, then set the remuneration mix for the year, documenting eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result
The credits produced $102,000 across the open years, and the tracking now in place means the following year's claim is documented as the work happens rather than reconstructed afterwards.
Case Study 5 · Backlog brought current
Collections Halted And $93,000 Cut From A 7-Year Backlog — CCPC with Two Shareholders, Vancouver
Client: A CCPC with two shareholders · Where: Vancouver, British Columbia · Engagement: 7 weeks, fixed fee
Balance reduced by$93,000
Backlog cleared7 years
CollectionsHalted
The situation
By the time a CCPC with two shareholders in Vancouver, British Columbia called, 7 years were outstanding and the CRA had assessed on estimates. Underneath it sat two corporations under common control filing as if each had its own $500,000 limit.
What we did
We reconstructed the records year by year and mapped the association rules across the group, allocated the business limit deliberately on Schedule 23, and corrected the prior year by adjustment request. Each filing replaced an arbitrary assessment with a real one.
The result
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $93,000, and a relief application addressed part of the accumulated interest.
Case Study 6 · Objection and relief
$24,000 Of Penalties And Interest Cancelled On Relief — Import and Distribution Corporation, Mississauga
Client: An import and distribution corporation · Where: Mississauga, Ontario · Engagement: 8 weeks, fixed fee
Penalties and interest cancelled$24,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation
An assessment of $24,000 landed at an import and distribution corporation in Mississauga, Ontario following a desk review. The auditor had not seen the records behind retained earnings building in the operating company with no plan for extracting them.
What we did
We rebuilt the instalment schedule off the current year rather than the prior year, ending the interest accrual, then set out the legislative basis for the position alongside the documents supporting it.
The result
$24,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Reviewed for the 2025 tax year by Udit Gupta, Certified Tax Accountant. Figures describe representative engagements of this type; outcomes depend on your own facts. Client names and identifying details are omitted for confidentiality.
