6 Federal Incorporation tax and accounting engagements in full — what the client came to us with, what we did, and what it was worth. Each one is specific to federal incorporation work, not a general example.
Case Study 1 · Objection and relief
$76,000 Of Penalties And Interest Cancelled On Relief — Professional Forming a Professional, Mississauga
Client: A professional forming a professional corporation · Where: Mississauga, Ontario · Engagement: 3 weeks, fixed fee
Penalties and interest cancelled$76,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation
An assessment of $76,000 landed at a professional forming a professional corporation in Mississauga, Ontario following a desk review. The auditor had not seen the records behind a December 31 year-end chosen by default that put the balance due at the worst point in the cash cycle.
What we did
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, then set out the legislative basis for the position alongside the documents supporting it.
The result
$76,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 2 · Planning that cut the bill
$71,000 Cut From The Annual Tax Bill — Family Business Adding a, Hamilton
Client: A family business adding a second class of shares · Where: Hamilton, Ontario · Engagement: 7 weeks, fixed fee
First-year saving$71,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation
A family business adding a second class of shares in Hamilton, Ontario was compliant but paying more than it needed to. The prior year had been filed correctly and still left a single class of common shares that made income splitting impossible on the table.
What we did
We modelled the current position against the alternatives before changing anything, then reconstructed the minute book with resolutions for each historical dividend and share transaction.
The result
The change saved $71,000 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 3 · Sale and succession
Intergenerational Transfer Completed With $680,000 Deferred — Startup Preparing for Its, London
Client: A startup preparing for its first investment round · Where: London, Ontario · Engagement: 5 weeks, fixed fee
Tax deferred$680,000
TransferCompleted
RecordsReview-ready
The situation
A generational transfer at a startup preparing for its first investment round in London, Ontario had been discussed for years without a plan. Passive assets sitting inside the operating company, disqualifying the shares meant the transfer as contemplated would have been fully taxable.
What we did
We restructured the share capital so dividends could be directed deliberately, respecting the TOSI rules, sequencing the steps so each one was complete and documented before the next depended on it.
The result
$680,000 of tax was deferred through the transfer, and the successor generation took over a corporation whose records stood up to review.
Case Study 4 · Deadline rescue
$19,500 Late-Filing Penalty Cancelled On Relief Application — Contractor Incorporating for Liability, Kitchener
Client: A contractor incorporating for liability reasons · Where: Kitchener, Ontario · Engagement: 6 weeks, fixed fee
Penalty cancelled$19,500
Relief applicationGranted
ReturnAccepted as filed
The situation
A contractor incorporating for liability reasons in Kitchener, Ontario had already missed one deadline and was about to miss a second. Behind it sat dividends paid for three years with no directors’ resolutions behind them, and a penalty of $19,500 was accruing.
What we did
We split the work into what had to happen before the deadline and what could follow it, then revived the corporation, filed the outstanding annual returns, and set a compliance calendar covering both the corporate registry and the CRA.
The result
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $19,500 of the penalty already assessed on the earlier year.
Case Study 5 · Scaling without breaking
Second-Province Expansion Handled, $110,000 Of Cash Released — Corporation Reviving After Administrative, Moncton
Client: A corporation reviving after administrative dissolution · Where: Moncton, New Brunswick · Engagement: 11 weeks, fixed fee
Cash released$110,000
New registrationsComplete on day one
Compliance gapsNone
The situation
Revenue at a corporation reviving after administrative dissolution in Moncton, New Brunswick was up sharply and cash was tighter than ever. Underneath it sat GST/HST collected for eight months before the RT account was ever opened.
What we did
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. Every new obligation — registration, remittance frequency, provincial filing — was set up before it was triggered, not after.
The result
$110,000 of cash was released from the working capital cycle, and the expansion completed with every registration and filing obligation covered from day one.
Case Study 6 · Backlog brought current
6 Years Filed, $11,000 Removed From The Assessed Balance — Consultant Incorporating After Two, Lethbridge
Client: A consultant incorporating after two years of self-employment · Where: Lethbridge, Alberta · Engagement: 4 weeks, fixed fee
Years filed6
Assessed balance removed$11,000
CollectionsStopped
The situation
A consultant incorporating after two years of self-employment in Lethbridge, Alberta had not filed for 6 years. The CRA had issued arbitrary assessments, and the business was carrying a December 31 year-end chosen by default that put the balance due at the worst point in the cash cycle on top of a growing interest balance.
What we did
We started with the oldest year and worked forward so each year's closing balances fed the next. We reconstructed the minute book with resolutions for each historical dividend and share transaction, filing the years in sequence rather than all at once.
The result
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $11,000 of the estimated balance came off, with a payment arrangement covering the rest.
Reviewed for the 2025 tax year by Udit Gupta, Certified Tax Accountant. Figures describe representative engagements of this type; outcomes depend on your own facts. Client names and identifying details are omitted for confidentiality.
