6 worked Extra-Provincial Registration 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 extra-provincial registration work, not a specific client's file.
Case Study 1 · Missed incentive claimed
$72,000 In Credits Claimed That Prior Filings Had Missed — Federally Incorporating Seller, Burnaby
Client: An e-commerce seller incorporating federally · Where: Burnaby, British Columbia · Engagement: 8 weeks, fixed fee
Credits claimed$72,000
Years adjusted5
Review outcomeNo adjustment
The situation — An e-commerce seller incorporating federally, Burnaby, British Columbia
An e-commerce seller incorporating federally in Burnaby, British Columbia had been filing for 5 years. In that time, the incentives its activity qualified for were never claimed. Behind that sat a register of individuals with significant control that had never been opened, let alone updated.
What we did for An e-commerce seller incorporating federally, Burnaby, British Columbia
We tested each activity against the eligibility criteria rather than the description on the invoice. Then we reconstructed the minute book with resolutions for each historical dividend and share transaction.
The result — An e-commerce seller incorporating federally, Burnaby, British Columbia
$72,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 2 · Cash and remittance control
$116,000 Of Working Capital Freed From The Tax Cycle — Incorporating Contractor, Calgary
Client: A contractor incorporating for liability reasons · Where: Calgary, Alberta · Engagement: 4 weeks, fixed fee
Working capital freed$116,000
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation — A contractor incorporating for liability reasons, Calgary, Alberta
A contractor incorporating for liability reasons in Calgary, Alberta was profitable on paper and short of cash every month. A spouse added as a shareholder on the assumption dividends could simply be split between two returns explained most of the gap.
What we did for A contractor incorporating for liability reasons, Calgary, Alberta
We separated the corporate registry deadlines from the CRA deadlines on one calendar, with a named person responsible for each. We also built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result — A contractor incorporating for liability reasons, Calgary, Alberta
$116,000 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 3 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $36,500 Saved Each Year — Federal Registry Filer, Regina
Client: A federal corporation filing its registry annual return · Where: Regina, Saskatchewan · Engagement: 5 weeks, fixed fee
Annual saving$36,500
Tax on reorganisationDeferred
Elections filedOn time
The situation — A federal corporation filing its registry annual return, Regina, Saskatchewan
A federal corporation filing its registry annual return in Regina, Saskatchewan had outgrown the structure it started with. A corporation dissolved administratively for missed annual returns while still operating was the immediate problem. The longer-term one was that the structure blocked the next step.
What we did for A federal corporation filing its registry annual return, Regina, Saskatchewan
We mapped the current structure and modelled the target. Then we tested each intended dividend recipient against the excluded-amount tests before any dividend was declared, and recorded which test was being relied on. The tax-deferred elections were filed on time and the supporting valuations documented.
The result — A federal corporation filing its registry annual return, Regina, Saskatchewan
The reorganisation completed without triggering tax, and the new structure saves approximately $36,500 a year while removing the exposure the old one carried.
Case Study 4 · CRA review defended
$66,000 Proposed Adjustment Withdrawn In Full — Holding Structure Founder, Mississauga
Client: A founder setting up a holding structure · Where: Mississauga, Ontario · Engagement: 11 weeks, fixed fee
Adjustment withdrawn$66,000
File closed in11 weeks
Penalties assessedNone
The situation — A founder setting up a holding structure, Mississauga, Ontario
A founder setting up a holding structure in Mississauga, Ontario received a proposal letter opening a review of extra-provincial registration. The CRA had identified a single class of common shares that made income splitting impossible. It proposed an adjustment of $66,000, with 30 days to respond.
What we did for A founder setting up a holding structure, Mississauga, Ontario
We treated the response as an evidence exercise rather than an argument. We selected a year-end that put the balance-due date after the seasonal cash peak, then registered every program account the business actually needed. We then indexed every supporting document against the specific line the auditor had questioned.
The result — A founder setting up a holding structure, Mississauga, Ontario
The proposed adjustment was withdrawn in full — all $66,000 of it. The file closed in 11 weeks with no change to the assessed amounts and no penalty.
Case Study 5 · Records and systems rebuilt
16 Months Reconciled And $5,200 Of Input Tax Recovered — Family Business Adding Shares, Red Deer
Client: A family business adding a second class of shares · Where: Red Deer, Alberta · Engagement: 5 weeks, fixed fee
Months reconciled16
Input tax recovered$5,200
Close time10 days
The situation — A family business adding a second class of shares, Red Deer, Alberta
Nothing reconciled at a family business adding a second class of shares in Red Deer, Alberta. Every filing started with 16 months of cleanup. The file was carrying a register of individuals with significant control that had never been opened, let alone updated.
What we did for A family business adding a second class of shares, Red Deer, Alberta
We rebuilt from source rather than correcting on top of the existing file. We filed the change of registered office and the director changes, so registry correspondence reached someone who read it. Then we set the routine that keeps it clean.
The result — A family business adding a second class of shares, Red Deer, Alberta
16 months reconciled to the bank. The close now takes 10 days, and $5,200 of previously unclaimable input tax was recovered in the process.
Case Study 6 · Backlog brought current
Collections Halted And $11,000 Cut From A 4-Year Backlog — Newly Formed Corporation, Ottawa
Client: A corporation choosing its first fiscal year-end · Where: Ottawa, Ontario · Engagement: 7 weeks, fixed fee
Balance reduced by$11,000
Backlog cleared4 years
CollectionsHalted
The situation — A corporation choosing its first fiscal year-end, Ottawa, Ontario
By the time a corporation choosing its first fiscal year-end in Ottawa, Ontario called, 4 years were outstanding. The CRA had assessed on estimates. Underneath it sat a December 31 year-end chosen by default that put the balance due at the worst point in the cash cycle.
What we did for A corporation choosing its first fiscal year-end, Ottawa, Ontario
We reconstructed the records year by year. We restructured the share capital so dividends could be directed deliberately, respecting the TOSI rules. Each filing replaced an arbitrary assessment with a real one.
The result — A corporation choosing its first fiscal year-end, Ottawa, Ontario
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $11,000, and a relief application addressed part of the accumulated interest.
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.
