6 worked Corporate Tax Schedule Preparation 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 schedule preparation work, not a specific client's file.
Case Study 1 · Records and systems rebuilt
Month-End Close Cut From 6 Weeks To 10 Days — Import and Distribution Corporation, Kelowna
Client: An import and distribution corporation · Where: Kelowna, British Columbia · Engagement: 3 weeks, fixed fee
Close time before6 weeks
Close time after10 days
Year-endReview, not rebuild
The situation — An import and distribution corporation, Kelowna, British Columbia
The accounting file at an import and distribution corporation in Kelowna, British Columbia had a weak foundation. It was built on two corporations under common control filing as if each had its own $500,000 limit. The year-end had taken 6 weeks each of the last three years.
What we did for An import and distribution corporation, Kelowna, 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. We also moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result — An import and distribution corporation, Kelowna, British Columbia
The file reconciles. Month-end closes in 10 days instead of 6 weeks, and the year-end is a review rather than a reconstruction.
Case Study 2 · Missed incentive claimed
$61,000 In Credits Claimed That Prior Filings Had Missed — Holding and Operating Companies, Red Deer
Client: A holding company and its operating subsidiary · Where: Red Deer, Alberta · Engagement: 10 weeks, fixed fee
Credits claimed$61,000
Years adjusted7
Review outcomeNo adjustment
The situation — A holding company and its operating subsidiary, Red Deer, Alberta
A holding company and its operating subsidiary in Red Deer, Alberta had been filing for 7 years. In that time, the incentives its activity qualified for were never claimed. Behind that sat retained earnings building in the operating company with no plan for extracting them.
What we did for A holding company and its operating subsidiary, Red Deer, Alberta
We tested each activity against the eligibility criteria rather than the description on the invoice. Then we documented safe income before the inter-corporate dividend was paid, so subsection 55(2) had no room to recharacterise it as a gain.
The result — A holding company and its operating subsidiary, Red Deer, Alberta
$61,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 3 · Deadline rescue
3-Week Turnaround Beat The Deadline And Saved $40,000 — First-Profit Technology CCPC, London
Client: A technology CCPC approaching its first profitable year · Where: London, Ontario · Engagement: 3 weeks, fixed fee
Late-filing penalty avoided$40,000
Filed with13 days to spare
Next yearPapers ready
The situation — A technology CCPC approaching its first profitable year, London, Ontario
A technology CCPC approaching its first profitable year in London, Ontario was weeks away from the deadline for corporate tax schedule preparation. Behind that sat a loss year carried forward by default when carrying it back would have produced a refund cheque. The exposure if the date slipped was around $40,000.
What we did for A technology CCPC approaching its first profitable year, London, Ontario
We moved passive holdings into a separate structure so the operating company’s small business limit stopped grinding down. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — A technology CCPC approaching its first profitable year, London, Ontario
Filed with 13 days to spare. $40,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Client: A corporation with a non-calendar fiscal year-end · Where: Winnipeg, Manitoba · Engagement: 9 weeks, fixed fee
Proposed tax cleared$54,000
Review duration9 weeks
OutcomeNo change
The situation — A corporation with a non-calendar fiscal year-end, Winnipeg, Manitoba
A corporation with a non-calendar fiscal year-end in Winnipeg, Manitoba was selected for review. A distribution treated as tax-free capital dividend with no election ever filed had shown up in the CRA's automated matching. The proposed adjustment on corporate tax schedule preparation came to $54,000.
What we did for A corporation with a non-calendar fiscal year-end, Winnipeg, Manitoba
We carried the non-capital loss back against the two profitable years and recovered tax already paid instead of holding a carry-forward balance. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result — A corporation with a non-calendar fiscal year-end, Winnipeg, Manitoba
The review closed with no change. $54,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 5 · Objection and relief
Desk-Review Assessment Of $50,000 Vacated — Incorporated Consultancy, Calgary
Client: An incorporated consultancy · Where: Calgary, Alberta · Engagement: 4 weeks, fixed fee
Assessment vacated$50,000
Supporting recordsNow on file
AccountCleared
The situation — An incorporated consultancy, Calgary, Alberta
An incorporated consultancy in Calgary, Alberta was carrying $50,000 of penalties and interest. The charges arose from dividends moved up to a holding company year after year with no safe-income support on file. Much of that amount accumulated during a period the CRA itself had delayed.
What we did for An incorporated consultancy, Calgary, Alberta
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. We framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result — An incorporated consultancy, Calgary, Alberta
The assessment was vacated. $50,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Case Study 6 · Scaling without breaking
Second-Province Expansion Handled, $101,000 Of Cash Released — Corporation Holding Investments, Barrie
Client: An operating company holding surplus investments · Where: Barrie, Ontario · Engagement: 11 weeks, fixed fee
Cash released$101,000
New registrationsComplete on day one
Compliance gapsNone
The situation — An operating company holding surplus investments, Barrie, Ontario
Revenue at an operating company holding surplus investments in Barrie, Ontario was up sharply and cash was tighter than ever. Underneath it sat a small business limit quietly shared across three associated corporations nobody had mapped.
What we did for An operating company holding surplus investments, Barrie, Ontario
We rebuilt the instalment schedule off the current year rather than the prior year, ending the interest accrual. Every new obligation was set up before it was triggered, not after. That covered registration, remittance frequency and provincial filing.
The result — An operating company holding surplus investments, Barrie, Ontario
$101,000 of cash was released from the working capital cycle. The expansion completed with every registration and filing obligation covered from day one.
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.
