6 Corporate Capital Gains 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 corporate capital gains tax return work, not a general example.
Case Study 1 · Deadline rescue
$79,000 Late-Filing Penalty Cancelled On Relief Application — CCPC with Two Shareholders, Toronto
Client: A CCPC with two shareholders · Where: Toronto, Ontario · Engagement: 9 weeks, fixed fee
Penalty cancelled$79,000
Relief applicationGranted
ReturnAccepted as filed
The situation
A CCPC with two shareholders in Toronto, Ontario had already missed one deadline and was about to miss a second. Behind it sat passive investment income that had crossed the $50,000 grind threshold unnoticed, and a penalty of $79,000 was accruing.
What we did
We split the work into what had to happen before the deadline and what could follow it, then rebuilt the instalment schedule off the current year rather than the prior year, ending the interest accrual.
The result
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $79,000 of the penalty already assessed on the earlier year.
Case Study 2 · Backlog brought current
Collections Halted And $79,000 Cut From A 6-Year Backlog — Technology CCPC Approaching Its, Mississauga
Client: A technology CCPC approaching its first profitable year · Where: Mississauga, Ontario · Engagement: 9 weeks, fixed fee
Balance reduced by$79,000
Backlog cleared6 years
CollectionsHalted
The situation
By the time a technology CCPC approaching its first profitable year in Mississauga, Ontario called, 6 years were outstanding and the CRA had assessed on estimates. Underneath it sat retained earnings building in the operating company with no plan for extracting them.
What we did
We reconstructed the records year by year and modelled salary against dividends across both the corporation and the shareholder’s personal return, then set the remuneration mix for the year. 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 $79,000, and a relief application addressed part of the accumulated interest.
Case Study 3 · CRA review defended
Audit Defence Closed In 10 Weeks, $133,000 Cleared — Franchise Operator with Three, Winnipeg
Client: A franchise operator with three locations · Where: Winnipeg, Manitoba · Engagement: 10 weeks, fixed fee
Proposed tax cleared$133,000
Review duration10 weeks
OutcomeNo change
The situation
A franchise operator with three locations in Winnipeg, Manitoba was selected for review after a balance-due date the owner believed was the same as the filing date showed up in the CRA's automated matching. The proposed adjustment on corporate capital gains tax return came to $133,000.
What we did
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 figure in the response traced to a source record the auditor could verify without asking a second question.
The result
The review closed with no change. $133,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 4 · Cash and remittance control
Remittance Schedule Corrected, $62,000 Refunded — Holding Company and Its, Halifax
Client: A holding company and its operating subsidiary · Where: Halifax, Nova Scotia · Engagement: 5 weeks, fixed fee
Overpayment refunded$62,000
Late remittances sinceZero
ScheduleAutomated
The situation
Remittances at a holding company and its operating subsidiary in Halifax, Nova Scotia were consistently late by a few days, which was enough to trigger penalties every quarter. Behind it sat a small business limit quietly shared across three associated corporations nobody had mapped.
What we did
We moved passive holdings into a separate structure so the operating company’s small business limit stopped grinding down, then moved the remittance dates into a scheduled process rather than a monthly decision.
The result
Penalties stopped from the following remittance onwards, and $62,000 of overpaid instalments was refunded.
Case Study 5 · Objection and relief
Notice Of Objection Allowed In Full, $144,000 Reversed — Incorporated Trades Business, Burnaby
Client: An incorporated trades business · Where: Burnaby, British Columbia · Engagement: 5 weeks, fixed fee
Amount reversed$144,000
ObjectionAllowed in full
Account balanceNil
The situation
An incorporated trades business in Burnaby, British Columbia had been reassessed for $144,000 and had 18 days left on the objection deadline. The reassessment rested on two corporations under common control filing as if each had its own $500,000 limit.
What we did
We filed the objection inside the deadline with a complete submission rather than a placeholder, and rebuilt the instalment schedule off the current year rather than the prior year, ending the interest accrual.
The result
The appeals officer allowed the objection in full. $144,000 was reversed and the account returned to a nil balance.
Case Study 6 · Sale and succession
Intergenerational Transfer Completed With $195,000 Deferred — Incorporated Consultancy, Kitchener
A generational transfer at an incorporated consultancy in Kitchener, Ontario had been discussed for years without a plan. A single shareholder holding every share, with no room to multiply the exemption meant the transfer as contemplated would have been fully taxable.
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, sequencing the steps so each one was complete and documented before the next depended on it.
The result
$195,000 of tax was deferred through the transfer, and the successor generation took over a corporation whose records stood up to review.
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.
