6 worked Capital Dividend Election Assistance 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 capital dividend election assistance work, not a specific client's file.
Case Study 1 · Missed incentive claimed
$34,000 In Credits Claimed That Prior Filings Had Missed — First-Profit Technology CCPC, Victoria
Client: A technology CCPC approaching its first profitable year · Where: Victoria, British Columbia · Engagement: 7 weeks, fixed fee
Credits claimed$34,000
Years adjusted4
Review outcomeNo adjustment
The situation — A technology CCPC approaching its first profitable year, Victoria, British Columbia
A technology CCPC approaching its first profitable year in Victoria, British Columbia had been filing for 4 years. In that time, the incentives its activity qualified for were never claimed. Behind that sat two corporations under common control filing as if each had its own $500,000 limit.
What we did for A technology CCPC approaching its first profitable year, Victoria, British Columbia
We tested each activity against the eligibility criteria rather than the description on the invoice. Then we reviewed each capital cost allowance pool and set the claim at the level that kept the small business deduction fully used rather than wasted.
The result — A technology CCPC approaching its first profitable year, Victoria, British Columbia
$34,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 2 · Scaling without breaking
Second-Province Expansion Handled, $101,000 Of Cash Released — Second-Generation Manufacturer, Windsor
Client: A second-generation family manufacturer · Where: Windsor, Ontario · Engagement: 5 weeks, fixed fee
Cash released$101,000
New registrationsComplete on day one
Compliance gapsNone
The situation — A second-generation family manufacturer, Windsor, Ontario
Revenue at a second-generation family manufacturer in Windsor, Ontario was up sharply and cash was tighter than ever. Underneath it sat a loss year carried forward by default when carrying it back would have produced a refund cheque.
What we did for A second-generation family manufacturer, Windsor, Ontario
We mapped the association rules across the group, allocated the business limit deliberately on Schedule 23, and corrected the prior year by adjustment request. Every new obligation was set up before it was triggered, not after. That covered registration, remittance frequency and provincial filing.
The result — A second-generation family manufacturer, Windsor, Ontario
$101,000 of cash was released from the working capital cycle. The expansion completed with every registration and filing obligation covered from day one.
Case Study 3 · Cash and remittance control
Instalments Rebased, $32,000 Of Cash Returned To The Business — Non-Calendar Year-End Corporation, Moncton
Client: A corporation with a non-calendar fiscal year-end · Where: Moncton, New Brunswick · Engagement: 11 weeks, fixed fee
Cash returned$32,000
Instalment basisCurrent year
ReviewedQuarterly
The situation — A corporation with a non-calendar fiscal year-end, Moncton, New Brunswick
A corporation with a non-calendar fiscal year-end in Moncton, New Brunswick was paying instalments calculated on a prior year. That year no longer reflected the business. Two corporations under common control filing as if each had its own $500,000 limit was tying up $32,000 of cash.
What we did for A corporation with a non-calendar fiscal year-end, Moncton, New Brunswick
We rebased the instalments on the current-year estimate rather than the prior-year default. Alongside that, we moved passive holdings into a separate structure so the operating company’s small business limit stopped grinding down.
The result — A corporation with a non-calendar fiscal year-end, Moncton, New Brunswick
$32,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 4 · Deadline rescue
Filed On Time From A Standing Start, $125,000 Penalty Avoided — Import and Distribution Corporation, Barrie
Client: An import and distribution corporation · Where: Barrie, Ontario · Engagement: 4 weeks, fixed fee
Penalty avoided$125,000
Turnaround4 weeks
FiledOn time
The situation — An import and distribution corporation, Barrie, Ontario
An import and distribution corporation in Barrie, Ontario came to us 4 weeks before its filing deadline. The file came with passive investment income that had crossed the $50,000 grind threshold unnoticed. A late filing would have triggered a penalty of roughly $125,000 before interest.
What we did for An import and distribution corporation, Barrie, Ontario
We worked backwards from the deadline. We rebuilt the instalment schedule off the current year rather than the prior year, ending the interest accrual. We prioritised the items that actually gated the filing and deferred everything that did not.
The result — An import and distribution corporation, Barrie, Ontario
The return was filed on time and complete. The $125,000 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Case Study 5 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $54,000 Saved Each Year — Incorporated Consultancy, Kelowna
Client: An incorporated consultancy · Where: Kelowna, British Columbia · Engagement: 5 weeks, fixed fee
Annual saving$54,000
Tax on reorganisationDeferred
Elections filedOn time
The situation — An incorporated consultancy, Kelowna, British Columbia
An incorporated consultancy in Kelowna, British Columbia had outgrown the structure it started with. A small business limit quietly shared across three associated corporations nobody had mapped was the immediate problem. The longer-term one was that the structure blocked the next step.
What we did for An incorporated consultancy, Kelowna, British Columbia
We mapped the current structure and modelled the target. Then we modelled salary against dividends across both the corporation and the shareholder’s personal return, then set the remuneration mix for the year. The tax-deferred elections were filed on time and the supporting valuations documented.
The result — An incorporated consultancy, Kelowna, British Columbia
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 6 · Sale and succession
Share Sale Restructured, $290,000 Less Tax On Closing — Holding and Operating Companies, Guelph
Client: A holding company and its operating subsidiary · Where: Guelph, Ontario · Engagement: 10 weeks, fixed fee
Tax saved on closing$290,000
PriceAs agreed
Post-closing adjustmentsNone
The situation — A holding company and its operating subsidiary, Guelph, Ontario
A holding company and its operating subsidiary in Guelph, Ontario was preparing to sell. Due diligence surfaced passive assets sitting inside the operating company, disqualifying the shares. That would have reduced the price or killed the deal outright.
What we did for A holding company and its operating subsidiary, Guelph, Ontario
We cleaned up the historical file. We carried the non-capital loss back against the two profitable years and recovered tax already paid instead of holding a carry-forward balance. Then we prepared the due-diligence package the buyer's advisers actually asked for.
The result — A holding company and its operating subsidiary, Guelph, Ontario
The deal closed at the agreed price. $290,000 of tax was saved against the structure originally proposed, with no post-closing adjustment.
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.
