6 worked Corporate Investment Income Planning 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 investment income planning work, not a specific client's file.
Case Study 1 · Missed incentive claimed
$31,500 Credit Claim Filed And Accepted Without Adjustment — Holding and Operating Companies, Calgary
Client: A holding company and its operating subsidiary · Where: Calgary, Alberta · Engagement: 6 weeks, fixed fee
Claim value$31,500
AcceptedWithout adjustment
RepeatableAnnually
The situation — A holding company and its operating subsidiary, Calgary, Alberta
A holding company and its operating subsidiary in Calgary, Alberta assumed the credits did not apply to a business its size. Two corporations under common control filing as if each had its own $500,000 limit meant they had applied all along.
What we did for A holding company and its operating subsidiary, Calgary, Alberta
We identified the qualifying activity and built the documentation to support it. 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 holding company and its operating subsidiary, Calgary, Alberta
$31,500 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
Case Study 2 · Scaling without breaking
Scaled To 56 Staff With $150,000 Of Working Capital Freed — Three-Location Franchisee, Guelph
Client: A franchise operator with three locations · Where: Guelph, Ontario · Engagement: 11 weeks, fixed fee
Headcount reached56
Working capital freed$150,000
Missed deadlinesZero
The situation — A franchise operator with three locations, Guelph, Ontario
A franchise operator with three locations in Guelph, Ontario was growing fast, with headcount reaching 56 in eighteen months. The back office had not kept up. A distribution treated as tax-free capital dividend with no election ever filed was the first thing to break.
What we did for A franchise operator with three locations, Guelph, Ontario
We moved passive holdings into a separate structure so the operating company’s small business limit stopped grinding down. We built the compliance calendar for the size the business was becoming rather than the size it had been.
The result — A franchise operator with three locations, Guelph, Ontario
The business reached 56 staff with no missed remittance and no late filing. $150,000 of working capital was freed in the process.
Case Study 3 · Cash and remittance control
Instalments Rebased, $76,000 Of Cash Returned To The Business — First-Profit Technology CCPC, Moncton
Client: A technology CCPC approaching its first profitable year · Where: Moncton, New Brunswick · Engagement: 4 weeks, fixed fee
Cash returned$76,000
Instalment basisCurrent year
ReviewedQuarterly
The situation — A technology CCPC approaching its first profitable year, Moncton, New Brunswick
A technology CCPC approaching its first profitable year in Moncton, New Brunswick was paying instalments calculated on a prior year. That year no longer reflected the business. A loss year carried forward by default when carrying it back would have produced a refund cheque was tying up $76,000 of cash.
What we did for A technology CCPC approaching its first profitable year, Moncton, New Brunswick
We rebased the instalments on the current-year estimate rather than the prior-year default. Alongside that, we modelled salary against dividends across both the corporation and the shareholder’s personal return, then set the remuneration mix for the year.
The result — A technology CCPC approaching its first profitable year, Moncton, New Brunswick
$76,000 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
$61,000 Late-Filing Penalty Cancelled On Relief Application — Associated Corporation Pair, Red Deer
Client: A corporation associated with a spouse-owned company · Where: Red Deer, Alberta · Engagement: 9 weeks, fixed fee
Penalty cancelled$61,000
Relief applicationGranted
ReturnAccepted as filed
The situation — A corporation associated with a spouse-owned company, Red Deer, Alberta
A corporation associated with a spouse-owned company in Red Deer, Alberta 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. A penalty of $61,000 was accruing.
What we did for A corporation associated with a spouse-owned company, Red Deer, Alberta
We split the work into what had to happen before the deadline and what could follow it. Then we reconstructed the capital dividend account from the underlying transactions and filed the subsection 83(2) election before the next distribution left the company.
The result — A corporation associated with a spouse-owned company, Red Deer, Alberta
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $61,000 of the penalty already assessed on the earlier year.
Client: A corporation with a non-calendar fiscal year-end · Where: Brampton, Ontario · Engagement: 7 weeks, fixed fee
Annual saving$54,000
ReorganisationTax-neutral
StructureMatches operations
The situation — A corporation with a non-calendar fiscal year-end, Brampton, Ontario
The structure at a corporation with a non-calendar fiscal year-end in Brampton, Ontario needed fixing. The file was carrying two corporations under common control filing as if each had its own $500,000 limit. Every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did for A corporation with a non-calendar fiscal year-end, Brampton, Ontario
We worked with the client's lawyer. Together, we mapped the association rules across the group, allocated the business limit deliberately on Schedule 23, and corrected the prior year by adjustment request. We also prepared the elections, resolutions and valuations the structure needed to stand up.
The result — A corporation with a non-calendar fiscal year-end, Brampton, Ontario
The structure now matches the business. Annual saving of $54,000, and the reorganisation itself was tax-neutral.
Case Study 6 · Sale and succession
Intergenerational Transfer Completed With $655,000 Deferred — Professional Corporation, Saskatoon
Client: A professional corporation · Where: Saskatoon, Saskatchewan · Engagement: 6 weeks, fixed fee
Tax deferred$655,000
TransferCompleted
RecordsReview-ready
The situation — A professional corporation, Saskatoon, Saskatchewan
A generational transfer at a professional corporation in Saskatoon, Saskatchewan had been discussed for years without a plan. A shareholder loan balance that would have been picked up as income on closing meant the transfer as contemplated would have been fully taxable.
What we did for A professional corporation, Saskatoon, Saskatchewan
We rebuilt the instalment schedule off the current year rather than the prior year, ending the interest accrual. We sequenced the steps so each one was complete and documented before the next depended on it.
The result — A professional corporation, Saskatoon, Saskatchewan
$655,000 of tax was deferred through the transfer, and the successor generation took over a corporation whose records stood up to review.
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.
