6 worked Digital Media Tax Credits 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 digital media tax credits work, not a specific client's file.
Case Study 1 · Backlog brought current
6 Years Filed, $15,500 Removed From The Assessed Balance — Late-Documented Claimant, Burnaby
Client: A claimant whose project records were written after the work · Where: Burnaby, British Columbia · Engagement: 11 weeks, fixed fee
Years filed6
Assessed balance removed$15,500
CollectionsStopped
The situation — A claimant whose project records were written after the work, Burnaby, British Columbia
A claimant whose project records were written after the work in Burnaby, British Columbia had not filed for 6 years. The CRA had issued arbitrary assessments, and the business was carrying a claim filed at the 15% non-refundable rate when CCPC status supported 35% refundable on top of a growing interest balance.
What we did for A claimant whose project records were written after the work, Burnaby, British Columbia
We started with the oldest year and worked forward so each year's closing balances fed the next. We confirmed CCPC status and refiled at the enhanced 35% refundable rate, filing the years in sequence rather than all at once.
The result — A claimant whose project records were written after the work, Burnaby, British Columbia
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $15,500 of the estimated balance came off, with a payment arrangement covering the rest.
Case Study 2 · Scaling without breaking
Growth Handled Without A Missed Filing, $71,000 Freed — First-Time SR&ED Claimant, Kitchener
The situation — A first-time SR&ED claimant, Kitchener, Ontario
A first-time SR&ED claimant in Kitchener, Ontario was opening in a second province — different filing obligations, a different payroll regime, and an amended claim adding two projects after the reporting deadline had already passed already in the file.
What we did for A first-time SR&ED claimant, Kitchener, Ontario
We identified the eligible projects, documented the technological uncertainty and systematic investigation for each, and filed a claim that survived review without adjustment and put monthly reporting in place so the owner could see the cash effect of growth while there was still time to act on it.
The result — A first-time SR&ED claimant, Kitchener, Ontario
Growth was absorbed without a compliance failure. $71,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 3 · Deadline rescue
8-Week Turnaround Beat The Deadline And Saved $22,000 — Materials Science Company, Windsor
Client: A materials science company · Where: Windsor, Ontario · Engagement: 8 weeks, fixed fee
Late-filing penalty avoided$22,000
Filed with7 days to spare
Next yearPapers ready
The situation — A materials science company, Windsor, Ontario
With the deadline for digital media tax credits weeks away, a materials science company in Windsor, Ontario was carrying a provincial credit left unclaimed alongside a successful federal SR&ED claim. The exposure if the date slipped was around $22,000.
What we did for A materials science company, Windsor, Ontario
We sat with the technical staff to write each project description around the uncertainty they actually faced and the tests they ran. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — A materials science company, Windsor, Ontario
Filed with 7 days to spare. $22,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 4 · Sale and succession
$750,000 Sheltered By The Lifetime Capital Gains Exemption — Digital Media Game Studio, Kelowna
Client: A game studio claiming digital media credits · Where: Kelowna, British Columbia · Engagement: 5 weeks, fixed fee
Gain sheltered$750,000
ClosingOn schedule
Share qualificationMet
The situation — A game studio claiming digital media credits, Kelowna, British Columbia
A game studio claiming digital media credits in Kelowna, British Columbia had an offer on the table and 9 months to close. The shares did not qualify for the capital gains exemption, and retained cash well above what the business needed to operate was part of the reason.
What we did for A game studio claiming digital media credits, Kelowna, British Columbia
We purified the corporation so the shares met the qualifying tests, then netted the government assistance against the qualified expenditure pool, so the claim matched what would survive a review well ahead of the closing date.
The result — A game studio claiming digital media credits, Kelowna, British Columbia
The sale closed on schedule with $750,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 5 · Planning that cut the bill
Remuneration Review Saved $73,000 Across Corporate And Personal Returns — Clean-Technology Startup, Toronto
The situation — A clean-technology startup, Toronto, Ontario
Nothing was wrong at a clean-technology startup in Toronto, Ontario — the filings were on time and accurate. What they were not was planned. A filing deadline missed by three weeks, extinguishing the entire claim had never been reviewed.
What we did for A clean-technology startup, Toronto, Ontario
We layered the applicable provincial credit onto the federal claim in the same filing, and ran the numbers across both the corporate and personal returns so the saving was real rather than deferred into someone else's hands.
The result — A clean-technology startup, Toronto, Ontario
$73,000 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
Case Study 6 · Objection and relief
$75,000 Of Penalties And Interest Cancelled On Relief — Reformulating Food Producer, Mississauga
Client: A food producer reformulating its product line · Where: Mississauga, Ontario · Engagement: 5 weeks, fixed fee
Penalties and interest cancelled$75,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — A food producer reformulating its product line, Mississauga, Ontario
An assessment of $75,000 landed at a food producer reformulating its product line in Mississauga, Ontario following a desk review. The auditor had not seen the records behind eligible development work never claimed because nobody thought it counted as research.
What we did for A food producer reformulating its product line, Mississauga, Ontario
We put contemporaneous tracking in place — project logs tied to time records — so the following year’s claim was defensible by construction, then set out the legislative basis for the position alongside the documents supporting it.
The result — A food producer reformulating its product line, Mississauga, Ontario
$75,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
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.
