6 worked Corporate Tax Election Filing 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 election filing work, not a specific client's file.
Case Study 1 · Records and systems rebuilt
29 Months Reconciled And $12,000 Of Input Tax Recovered — Non-Calendar Year-End Corporation, Moncton
Client: A corporation with a non-calendar fiscal year-end · Where: Moncton, New Brunswick · Engagement: 11 weeks, fixed fee
Months reconciled29
Input tax recovered$12,000
Close time10 days
The situation — A corporation with a non-calendar fiscal year-end, Moncton, New Brunswick
A corporation with a non-calendar fiscal year-end in Moncton, New Brunswick was carrying passive investment income that had crossed the $50,000 grind threshold unnoticed. Nothing reconciled, and every filing started with 29 months of cleanup.
What we did for A corporation with a non-calendar fiscal year-end, Moncton, New Brunswick
We rebuilt from source rather than correcting on top of the existing file. We moved passive holdings into a separate structure so the operating company’s small business limit stopped grinding down, then set the routine that keeps it clean.
The result — A corporation with a non-calendar fiscal year-end, Moncton, New Brunswick
29 months reconciled to the bank. The close now takes 10 days, and $12,000 of previously unclaimable input tax was recovered in the process.
Case Study 2 · Missed incentive claimed
$98,000 Credit Claim Filed And Accepted Without Adjustment — Second-Generation Manufacturer, Barrie
Client: A second-generation family manufacturer · Where: Barrie, Ontario · Engagement: 3 weeks, fixed fee
Claim value$98,000
AcceptedWithout adjustment
RepeatableAnnually
The situation — A second-generation family manufacturer, Barrie, Ontario
A second-generation family manufacturer in Barrie, Ontario assumed the credits did not apply to a business its size. Dividends moved up to a holding company year after year with no safe-income support on file meant they had applied all along.
What we did for A second-generation family manufacturer, Barrie, Ontario
We identified the qualifying activity, built the documentation to support it, and 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 second-generation family manufacturer, Barrie, Ontario
$98,000 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
Case Study 3 · Deadline rescue
Filed On Time From A Standing Start, $28,000 Penalty Avoided — First-Profit Technology CCPC, Kelowna
Client: A technology CCPC approaching its first profitable year · Where: Kelowna, British Columbia · Engagement: 7 weeks, fixed fee
Penalty avoided$28,000
Turnaround7 weeks
FiledOn time
The situation — A technology CCPC approaching its first profitable year, Kelowna, British Columbia
A technology CCPC approaching its first profitable year in Kelowna, British Columbia came to us 7 weeks before its filing deadline with two corporations under common control filing as if each had its own $500,000 limit. A late filing would have triggered a penalty of roughly $28,000 before interest.
What we did for A technology CCPC approaching its first profitable year, Kelowna, British Columbia
We worked backwards from the deadline. 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, prioritising the items that actually gated the filing and deferring everything that did not.
The result — A technology CCPC approaching its first profitable year, Kelowna, British Columbia
The return was filed on time and complete. The $28,000 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Case Study 4 · CRA review defended
$78,000 Proposed Adjustment Withdrawn In Full — Corporation Holding Investments, Guelph
Client: An operating company holding surplus investments · Where: Guelph, Ontario · Engagement: 11 weeks, fixed fee
Adjustment withdrawn$78,000
File closed in11 weeks
Penalties assessedNone
The situation — An operating company holding surplus investments, Guelph, Ontario
An operating company holding surplus investments in Guelph, Ontario received a proposal letter opening a review of corporate tax election filing. The CRA had identified a small business limit quietly shared across three associated corporations nobody had mapped and proposed an adjustment of $78,000, with 30 days to respond.
What we did for An operating company holding surplus investments, Guelph, Ontario
We treated the response as an evidence exercise rather than an argument. We documented safe income before the inter-corporate dividend was paid, so subsection 55(2) had no room to recharacterise it as a gain, then indexed every supporting document against the specific line the auditor had questioned.
The result — An operating company holding surplus investments, Guelph, Ontario
The proposed adjustment was withdrawn in full — all $78,000 of it. The file closed in 11 weeks with no change to the assessed amounts and no penalty.
Case Study 5 · Objection and relief
$127,000 Of Penalties And Interest Cancelled On Relief — Holding and Operating Companies, Lethbridge
Client: A holding company and its operating subsidiary · Where: Lethbridge, Alberta · Engagement: 3 weeks, fixed fee
Penalties and interest cancelled$127,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — A holding company and its operating subsidiary, Lethbridge, Alberta
An assessment of $127,000 landed at a holding company and its operating subsidiary in Lethbridge, Alberta following a desk review. The auditor had not seen the records behind a loss year carried forward by default when carrying it back would have produced a refund cheque.
What we did for A holding company and its operating subsidiary, Lethbridge, Alberta
We reconstructed the capital dividend account from the underlying transactions and filed the subsection 83(2) election before the next distribution left the company, then set out the legislative basis for the position alongside the documents supporting it.
The result — A holding company and its operating subsidiary, Lethbridge, Alberta
$127,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 6 · Scaling without breaking
Scaled To 21 Staff With $30,000 Of Working Capital Freed — Incorporated Consultancy, Toronto
The situation — An incorporated consultancy, Toronto, Ontario
An incorporated consultancy in Toronto, Ontario was growing fast — headcount to 21 in eighteen months — and the back office had not kept up. A balance-due date the owner believed was the same as the filing date was the first thing to break.
What we did for An incorporated consultancy, Toronto, Ontario
We carried the non-capital loss back against the two profitable years and recovered tax already paid instead of holding a carry-forward balance, and built the compliance calendar for the size the business was becoming rather than the size it had been.
The result — An incorporated consultancy, Toronto, Ontario
The business reached 21 staff with no missed remittance and no late filing. $30,000 of working capital was freed in the process.
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.
