6 worked Corporate Loss Utilization 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 loss utilization planning work, not a specific client's file.
Case Study 1 · Planning that cut the bill
$74,000 Cut From The Annual Tax Bill — Professional Corporation, Saskatoon
Client: A professional corporation · Where: Saskatoon, Saskatchewan · Engagement: 5 weeks, fixed fee
First-year saving$74,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation — A professional corporation, Saskatoon, Saskatchewan
A professional corporation in Saskatoon, Saskatchewan was compliant but paying more than it needed to. The prior year had been filed correctly. It still left a small business limit quietly shared across three associated corporations nobody had mapped on the table.
What we did for A professional corporation, Saskatoon, Saskatchewan
We modelled the current position against the alternatives before changing anything. Then we 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 — A professional corporation, Saskatoon, Saskatchewan
The change saved $74,000 in the first year and repeats annually. Nothing about the filings became more aggressive. The position is simply the one the rules already allowed.
Case Study 2 · Deadline rescue
Filed On Time From A Standing Start, $103,000 Penalty Avoided — Corporation Holding Investments, Victoria
Client: An operating company holding surplus investments · Where: Victoria, British Columbia · Engagement: 11 weeks, fixed fee
Penalty avoided$103,000
Turnaround11 weeks
FiledOn time
The situation — An operating company holding surplus investments, Victoria, British Columbia
An operating company holding surplus investments in Victoria, British Columbia came to us 11 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 $103,000 before interest.
What we did for An operating company holding surplus investments, Victoria, British Columbia
We worked backwards from the deadline. We modelled salary against dividends across both the corporation and the shareholder’s personal return, then set the remuneration mix for the year. We prioritised the items that actually gated the filing and deferred everything that did not.
The result — An operating company holding surplus investments, Victoria, British Columbia
The return was filed on time and complete. The $103,000 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Case Study 3 · Backlog brought current
Collections Halted And $17,500 Cut From A 5-Year Backlog — Corporate Rental Portfolio, Toronto
The situation — A corporately-owned rental portfolio, Toronto, Ontario
By the time a corporately-owned rental portfolio in Toronto, Ontario called, 5 years were outstanding. The CRA had assessed on estimates. Underneath it sat a balance-due date the owner believed was the same as the filing date.
What we did for A corporately-owned rental portfolio, Toronto, Ontario
We reconstructed the records year by year. We documented safe income before the inter-corporate dividend was paid, so subsection 55(2) had no room to recharacterise it as a gain. Each filing replaced an arbitrary assessment with a real one.
The result — A corporately-owned rental portfolio, Toronto, Ontario
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $17,500, and a relief application addressed part of the accumulated interest.
Case Study 4 · CRA review defended
$14,500 Reassessment Reduced To Nil On Review — Holding and Operating Companies, Hamilton
Client: A holding company and its operating subsidiary · Where: Hamilton, Ontario · Engagement: 9 weeks, fixed fee
Reassessment reduced toNil
Tax protected$14,500
Prior filingsUndisturbed
The situation — A holding company and its operating subsidiary, Hamilton, Ontario
A review notice arrived at a holding company and its operating subsidiary in Hamilton, Ontario, covering corporate loss utilization planning for two tax years. The auditor's working position was an adjustment of $14,500. It was driven by two corporations under common control filing as if each had its own $500,000 limit.
What we did for A holding company and its operating subsidiary, Hamilton, Ontario
Rather than negotiate, we rebuilt the record. We moved passive holdings into a separate structure so the operating company’s small business limit stopped grinding down. We then submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result — A holding company and its operating subsidiary, Hamilton, Ontario
The auditor accepted the documented position and closed the review without adjustment, protecting $14,500 and leaving the prior filings undisturbed.
Case Study 5 · Cash and remittance control
$94,000 Of Working Capital Freed From The Tax Cycle — Associated Corporation Pair, Regina
Client: A corporation associated with a spouse-owned company · Where: Regina, Saskatchewan · Engagement: 9 weeks, fixed fee
Working capital freed$94,000
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation — A corporation associated with a spouse-owned company, Regina, Saskatchewan
A corporation associated with a spouse-owned company in Regina, Saskatchewan was profitable on paper and short of cash every month. Retained earnings building in the operating company with no plan for extracting them explained most of the gap.
What we did for A corporation associated with a spouse-owned company, Regina, Saskatchewan
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 also built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result — A corporation associated with a spouse-owned company, Regina, Saskatchewan
$94,000 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 6 · Objection and relief
Notice Of Objection Allowed In Full, $69,000 Reversed — Incorporated Consultancy, Kelowna
Client: An incorporated consultancy · Where: Kelowna, British Columbia · Engagement: 7 weeks, fixed fee
Amount reversed$69,000
ObjectionAllowed in full
Account balanceNil
The situation — An incorporated consultancy, Kelowna, British Columbia
An incorporated consultancy in Kelowna, British Columbia had been reassessed for $69,000. 10 days were left on the objection deadline. The reassessment rested on a loss year carried forward by default when carrying it back would have produced a refund cheque.
What we did for An incorporated consultancy, Kelowna, British Columbia
We filed the objection inside the deadline with a complete submission rather than a placeholder. Alongside it, 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 — An incorporated consultancy, Kelowna, British Columbia
The appeals officer allowed the objection in full. $69,000 was reversed and the account returned to a nil balance.
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.
