6 Corporate Reorganization Tax Planning 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 reorganization tax planning work, not a general example.
Case Study 1 · Backlog brought current
$85,000 Of Arbitrary Assessments Vacated After 4 Years — CCPC with Two Shareholders, Red Deer
Client: A CCPC with two shareholders · Where: Red Deer, Alberta · Engagement: 3 weeks, fixed fee
Arbitrary tax vacated$85,000
Years brought current4
Account statusCurrent
The situation
4 years of unfiled returns had turned into notional assessments at a CCPC with two shareholders in Red Deer, Alberta, with passive investment income that had crossed the $50,000 grind threshold unnoticed underneath. Collections had already started.
What we did
We rebuilt the instalment schedule off the current year rather than the prior year, ending the interest accrual, then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result
All 4 years were accepted as filed. $85,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 4 years.
Case Study 2 · CRA review defended
$67,000 Reassessment Reduced To Nil On Review — Incorporated Trades Business, Regina
Client: An incorporated trades business · Where: Regina, Saskatchewan · Engagement: 5 weeks, fixed fee
Reassessment reduced toNil
Tax protected$67,000
Prior filingsUndisturbed
The situation
A review notice arrived at an incorporated trades business in Regina, Saskatchewan covering corporate reorganization tax planning for two tax years. The auditor's working position was an adjustment of $67,000, driven by retained earnings building in the operating company with no plan for extracting them.
What we did
Rather than negotiate, we rebuilt the record. We mapped the association rules across the group, allocated the business limit deliberately on Schedule 23, and corrected the prior year by adjustment request and submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result
The auditor accepted the documented position and closed the review without adjustment, protecting $67,000 and leaving the prior filings undisturbed.
Case Study 3 · Cash and remittance control
$46,000 Of Working Capital Freed From The Tax Cycle — Corporately-Owned Rental Portfolio, Burnaby
Client: A corporately-owned rental portfolio · Where: Burnaby, British Columbia · Engagement: 4 weeks, fixed fee
Working capital freed$46,000
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation
A corporately-owned rental portfolio in Burnaby, British Columbia was profitable on paper and short of cash every month. A balance-due date the owner believed was the same as the filing date explained most of the gap.
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 and built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result
$46,000 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 4 · Objection and relief
$19,500 Of Penalties And Interest Cancelled On Relief — Franchise Operator with Three, Saskatoon
Client: A franchise operator with three locations · Where: Saskatoon, Saskatchewan · Engagement: 8 weeks, fixed fee
Penalties and interest cancelled$19,500
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation
An assessment of $19,500 landed at a franchise operator with three locations in Saskatoon, Saskatchewan following a desk review. The auditor had not seen the records behind 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 set out the legislative basis for the position alongside the documents supporting it.
The result
$19,500 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 5 · Sale and succession
$200,000 Sheltered By The Lifetime Capital Gains Exemption — Professional Corporation, Surrey
Client: A professional corporation · Where: Surrey, British Columbia · Engagement: 4 weeks, fixed fee
Gain sheltered$200,000
ClosingOn schedule
Share qualificationMet
The situation
A professional corporation in Surrey, British Columbia had an offer on the table and 32 months to close. The shares did not qualify for the capital gains exemption, and a shareholder loan balance that would have been picked up as income on closing was part of the reason.
What we did
We purified the corporation so the shares met the qualifying tests, then rebuilt the instalment schedule off the current year rather than the prior year, ending the interest accrual well ahead of the closing date.
The result
The sale closed on schedule with $200,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 6 · Scaling without breaking
Second-Province Expansion Handled, $97,000 Of Cash Released — Holding Company and Its, Winnipeg
Client: A holding company and its operating subsidiary · Where: Winnipeg, Manitoba · Engagement: 3 weeks, fixed fee
Cash released$97,000
New registrationsComplete on day one
Compliance gapsNone
The situation
Revenue at a holding company and its operating subsidiary in Winnipeg, Manitoba was up sharply and cash was tighter than ever. Underneath it sat passive investment income that had crossed the $50,000 grind threshold unnoticed.
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 new obligation — registration, remittance frequency, provincial filing — was set up before it was triggered, not after.
The result
$97,000 of cash was released from the working capital cycle, and the expansion completed with every registration and filing obligation covered from day one.
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.
