6 worked Corporate Back-Tax Filing 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 corporate back-tax filing work, not a specific client's file.
Case Study 1 · Planning that cut the bill
Remuneration Review Saved $38,500 Across Corporate And Personal Returns — Incorporated Consultancy, Ottawa
The situation — An incorporated consultancy, Ottawa, Ontario
Nothing was wrong at an incorporated consultancy in Ottawa, Ontario. The filings were on time and accurate. What they were not was planned. Two corporations under common control filing as if each had its own $500,000 limit had never been reviewed.
What we did for An incorporated consultancy, Ottawa, Ontario
We modelled salary against dividends across both the corporation and the shareholder’s personal return, then set the remuneration mix for the year. We ran the numbers across both the corporate and personal returns, so the saving was real rather than deferred into someone else's hands.
The result — An incorporated consultancy, Ottawa, Ontario
$38,500 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
Case Study 2 · Sale and succession
Intergenerational Transfer Completed With $690,000 Deferred — Associated Corporation Pair, Red Deer
Client: A corporation associated with a spouse-owned company · Where: Red Deer, Alberta · Engagement: 8 weeks, fixed fee
Tax deferred$690,000
TransferCompleted
RecordsReview-ready
The situation — A corporation associated with a spouse-owned company, Red Deer, Alberta
A generational transfer at a corporation associated with a spouse-owned company in Red Deer, Alberta had been discussed for years without a plan. No valuation on file to support the price the parties had agreed meant the transfer as contemplated would have been fully taxable.
What we did for A corporation associated with a spouse-owned company, Red Deer, Alberta
We moved passive holdings into a separate structure so the operating company’s small business limit stopped grinding down. We sequenced the steps so each one was complete and documented before the next depended on it.
The result — A corporation associated with a spouse-owned company, Red Deer, Alberta
$690,000 of tax was deferred through the transfer, and the successor generation took over a corporation whose records stood up to review.
Case Study 3 · Deadline rescue
8-Week Turnaround Beat The Deadline And Saved $57,000 — Holding and Operating Companies, Mississauga
Client: A holding company and its operating subsidiary · Where: Mississauga, Ontario · Engagement: 8 weeks, fixed fee
Late-filing penalty avoided$57,000
Filed with21 days to spare
Next yearPapers ready
The situation — A holding company and its operating subsidiary, Mississauga, Ontario
A holding company and its operating subsidiary in Mississauga, Ontario was weeks away from the deadline for corporate back-tax filing. Behind that sat retained earnings building in the operating company with no plan for extracting them. The exposure if the date slipped was around $57,000.
What we did for A holding company and its operating subsidiary, Mississauga, Ontario
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 filing went in complete rather than provisional, so there was no amended return to follow.
The result — A holding company and its operating subsidiary, Mississauga, Ontario
Filed with 21 days to spare. $57,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 4 · Scaling without breaking
Second-Province Expansion Handled, $130,000 Of Cash Released — Corporate Rental Portfolio, Regina
The situation — A corporately-owned rental portfolio, Regina, Saskatchewan
Revenue at a corporately-owned rental portfolio in Regina, Saskatchewan was up sharply and cash was tighter than ever. Underneath it sat a small business limit quietly shared across three associated corporations nobody had mapped.
What we did for A corporately-owned rental portfolio, Regina, Saskatchewan
We reconstructed the capital dividend account from the underlying transactions and filed the subsection 83(2) election before the next distribution left the company. Every new obligation was set up before it was triggered, not after. That covered registration, remittance frequency and provincial filing.
The result — A corporately-owned rental portfolio, Regina, Saskatchewan
$130,000 of cash was released from the working capital cycle. The expansion completed with every registration and filing obligation covered from day one.
Case Study 5 · Backlog brought current
$81,000 Of Arbitrary Assessments Vacated After 4 Years — Corporation Holding Investments, Calgary
Client: An operating company holding surplus investments · Where: Calgary, Alberta · Engagement: 5 weeks, fixed fee
Arbitrary tax vacated$81,000
Years brought current4
Account statusCurrent
The situation — An operating company holding surplus investments, Calgary, Alberta
4 years of unfiled returns had turned into notional assessments at an operating company holding surplus investments in Calgary, Alberta. Underneath lay a loss year carried forward by default when carrying it back would have produced a refund cheque. Collections had already started.
What we did for An operating company holding surplus investments, Calgary, Alberta
We carried the non-capital loss back against the two profitable years and recovered tax already paid instead of holding a carry-forward balance. We then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result — An operating company holding surplus investments, Calgary, Alberta
All 4 years were accepted as filed. $81,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 4 years.
Case Study 6 · Records and systems rebuilt
Books Rebuilt From Source, $14,500 In Unclaimed Input Tax Found — Professional Corporation, Burnaby
Client: A professional corporation · Where: Burnaby, British Columbia · Engagement: 3 weeks, fixed fee
Unclaimed tax found$14,500
Records rebuilt12 months
ProcessDocumented
The situation — A professional corporation, Burnaby, British Columbia
A professional corporation in Burnaby, British Columbia could not answer basic questions about its own numbers. Passive investment income that had crossed the $50,000 grind threshold unnoticed sat between the bank statements and the ledger.
What we did for A professional corporation, Burnaby, British Columbia
We rebuilt the instalment schedule off the current year rather than the prior year, ending the interest accrual. We then documented the process so the work does not depend on any one person remembering how it was done.
The result — A professional corporation, Burnaby, British Columbia
Records rebuilt and reconciled, $14,500 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
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.
