6 worked Corporate Tax Cleanup 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 tax cleanup work, not a specific client's file.
Case Study 1 · Backlog brought current
$17,500 Of Arbitrary Assessments Vacated After 7 Years — Associated Corporation Pair, Burnaby
Client: A corporation associated with a spouse-owned company · Where: Burnaby, British Columbia · Engagement: 5 weeks, fixed fee
Arbitrary tax vacated$17,500
Years brought current7
Account statusCurrent
The situation — A corporation associated with a spouse-owned company, Burnaby, British Columbia
7 years of unfiled returns had turned into notional assessments at a corporation associated with a spouse-owned company in Burnaby, British Columbia, with a balance-due date the owner believed was the same as the filing date underneath. Collections had already started.
What we did for A corporation associated with a spouse-owned company, Burnaby, British Columbia
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 — A corporation associated with a spouse-owned company, Burnaby, British Columbia
All 7 years were accepted as filed. $17,500 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 7 years.
Case Study 2 · Scaling without breaking
Scaled To 55 Staff With $106,000 Of Working Capital Freed — Incorporated Trades Business, Guelph
Client: An incorporated trades business · Where: Guelph, Ontario · Engagement: 5 weeks, fixed fee
Headcount reached55
Working capital freed$106,000
Missed deadlinesZero
The situation — An incorporated trades business, Guelph, Ontario
An incorporated trades business in Guelph, Ontario was growing fast — headcount to 55 in eighteen months — and the back office had not kept up. Retained earnings building in the operating company with no plan for extracting them was the first thing to break.
What we did for An incorporated trades business, Guelph, Ontario
We documented safe income before the inter-corporate dividend was paid, so subsection 55(2) had no room to recharacterise it as a gain, and built the compliance calendar for the size the business was becoming rather than the size it had been.
The result — An incorporated trades business, Guelph, Ontario
The business reached 55 staff with no missed remittance and no late filing. $106,000 of working capital was freed in the process.
Case Study 3 · Deadline rescue
3-Week Turnaround Beat The Deadline And Saved $75,000 — Corporate Rental Portfolio, Surrey
Client: A corporately-owned rental portfolio · Where: Surrey, British Columbia · Engagement: 3 weeks, fixed fee
Late-filing penalty avoided$75,000
Filed with10 days to spare
Next yearPapers ready
The situation — A corporately-owned rental portfolio, Surrey, British Columbia
With the deadline for corporate tax cleanup weeks away, a corporately-owned rental portfolio in Surrey, British Columbia was carrying a distribution treated as tax-free capital dividend with no election ever filed. The exposure if the date slipped was around $75,000.
What we did for A corporately-owned rental portfolio, Surrey, British Columbia
We modelled salary against dividends across both the corporation and the shareholder’s personal return, then set the remuneration mix for the year. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — A corporately-owned rental portfolio, Surrey, British Columbia
Filed with 10 days to spare. $75,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 4 · Sale and succession
Intergenerational Transfer Completed With $285,000 Deferred — Three-Location Franchisee, Windsor
Client: A franchise operator with three locations · Where: Windsor, Ontario · Engagement: 3 weeks, fixed fee
Tax deferred$285,000
TransferCompleted
RecordsReview-ready
The situation — A franchise operator with three locations, Windsor, Ontario
A generational transfer at a franchise operator with three locations in Windsor, Ontario had been discussed for years without a plan. Retained cash well above what the business needed to operate meant the transfer as contemplated would have been fully taxable.
What we did for A franchise operator with three locations, Windsor, 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, sequencing the steps so each one was complete and documented before the next depended on it.
The result — A franchise operator with three locations, Windsor, Ontario
$285,000 of tax was deferred through the transfer, and the successor generation took over a corporation whose records stood up to review.
Case Study 5 · Planning that cut the bill
$69,000 Cut From The Annual Tax Bill — Professional Corporation, Edmonton
Client: A professional corporation · Where: Edmonton, Alberta · Engagement: 10 weeks, fixed fee
First-year saving$69,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation — A professional corporation, Edmonton, Alberta
A professional corporation in Edmonton, Alberta was compliant but paying more than it needed to. The prior year had been filed correctly and still left two corporations under common control filing as if each had its own $500,000 limit on the table.
What we did for A professional corporation, Edmonton, Alberta
We modelled the current position against the alternatives before changing anything, then carried the non-capital loss back against the two profitable years and recovered tax already paid instead of holding a carry-forward balance.
The result — A professional corporation, Edmonton, Alberta
The change saved $69,000 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 6 · Objection and relief
Desk-Review Assessment Of $73,000 Vacated — Two-Shareholder CCPC, Regina
Client: A CCPC with two shareholders · Where: Regina, Saskatchewan · Engagement: 4 weeks, fixed fee
Assessment vacated$73,000
Supporting recordsNow on file
AccountCleared
The situation — A CCPC with two shareholders, Regina, Saskatchewan
A CCPC with two shareholders in Regina, Saskatchewan was carrying $73,000 of penalties and interest arising from a loss year carried forward by default when carrying it back would have produced a refund cheque, much of it accumulated during a period the CRA itself had delayed.
What we did for A CCPC with two shareholders, Regina, Saskatchewan
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 framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result — A CCPC with two shareholders, Regina, Saskatchewan
The assessment was vacated. $73,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Reviewed for the 2025 tax year by Udit Gupta, Founder and Tax Accountant. 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.
