6 worked First Corporate Tax Return 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 first corporate tax return work, not a specific client's file.
Case Study 1 · Sale and succession
Share Sale Restructured, $540,000 Less Tax On Closing — Non-Calendar Year-End Corporation, Brampton
Client: A corporation with a non-calendar fiscal year-end · Where: Brampton, Ontario · Engagement: 3 weeks, fixed fee
Tax saved on closing$540,000
PriceAs agreed
Post-closing adjustmentsNone
The situation — A corporation with a non-calendar fiscal year-end, Brampton, Ontario
A corporation with a non-calendar fiscal year-end in Brampton, Ontario was preparing to sell. Due diligence surfaced retained cash well above what the business needed to operate. That would have reduced the price or killed the deal outright.
What we did for A corporation with a non-calendar fiscal year-end, Brampton, Ontario
We cleaned up the historical file. We modelled salary against dividends across both the corporation and the shareholder’s personal return, then set the remuneration mix for the year. Then we prepared the due-diligence package the buyer's advisers actually asked for.
The result — A corporation with a non-calendar fiscal year-end, Brampton, Ontario
The deal closed at the agreed price. $540,000 of tax was saved against the structure originally proposed, with no post-closing adjustment.
Case Study 2 · Missed incentive claimed
$12,000 In Credits Claimed That Prior Filings Had Missed — Incorporated Trades Business, Ottawa
Client: An incorporated trades business · Where: Ottawa, Ontario · Engagement: 8 weeks, fixed fee
Credits claimed$12,000
Years adjusted5
Review outcomeNo adjustment
The situation — An incorporated trades business, Ottawa, Ontario
An incorporated trades business in Ottawa, Ontario had been filing for 5 years. In that time, the incentives its activity qualified for were never claimed. Behind that sat passive investment income that had crossed the $50,000 grind threshold unnoticed.
What we did for An incorporated trades business, Ottawa, Ontario
We tested each activity against the eligibility criteria rather than the description on the invoice. Then we rebuilt the instalment schedule off the current year rather than the prior year, ending the interest accrual.
The result — An incorporated trades business, Ottawa, Ontario
$12,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Client: A second-generation family manufacturer · Where: Kelowna, British Columbia · Engagement: 3 weeks, fixed fee
Proposed tax cleared$29,500
Review duration3 weeks
OutcomeNo change
The situation — A second-generation family manufacturer, Kelowna, British Columbia
A second-generation family manufacturer in Kelowna, British Columbia was selected for review. A loss year carried forward by default when carrying it back would have produced a refund cheque had shown up in the CRA's automated matching. The proposed adjustment on first corporate tax return came to $29,500.
What we did for A second-generation family manufacturer, Kelowna, British Columbia
We moved passive holdings into a separate structure so the operating company’s small business limit stopped grinding down. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result — A second-generation family manufacturer, Kelowna, British Columbia
The review closed with no change. $29,500 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 4 · Scaling without breaking
Scaled To 38 Staff With $141,000 Of Working Capital Freed — Instalment-Paying Corporation, Regina
Client: A corporation paying instalments on prior-year figures · Where: Regina, Saskatchewan · Engagement: 7 weeks, fixed fee
Headcount reached38
Working capital freed$141,000
Missed deadlinesZero
The situation — A corporation paying instalments on prior-year figures, Regina, Saskatchewan
A corporation paying instalments on prior-year figures in Regina, Saskatchewan was growing fast, with headcount reaching 38 in eighteen months. 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 A corporation paying instalments on prior-year figures, Regina, Saskatchewan
We mapped the association rules across the group, allocated the business limit deliberately on Schedule 23, and corrected the prior year by adjustment request. We built the compliance calendar for the size the business was becoming rather than the size it had been.
The result — A corporation paying instalments on prior-year figures, Regina, Saskatchewan
The business reached 38 staff with no missed remittance and no late filing. $141,000 of working capital was freed in the process.
Case Study 5 · Planning that cut the bill
$49,000 Saved By Correcting What Prior Filings Had Missed — First-Profit Technology CCPC, Winnipeg
Client: A technology CCPC approaching its first profitable year · Where: Winnipeg, Manitoba · Engagement: 3 weeks, fixed fee
Saving identified$49,000
RecurringYes
Positions documentedAll
The situation — A technology CCPC approaching its first profitable year, Winnipeg, Manitoba
A technology CCPC approaching its first profitable year in Winnipeg, Manitoba asked for a second opinion on first corporate tax return. That followed three years of rising tax. The review found dividends moved up to a holding company year after year with no safe-income support on file.
What we did for A technology CCPC approaching its first profitable year, Winnipeg, Manitoba
We built the comparison first: current structure against two alternatives. Then 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.
The result — A technology CCPC approaching its first profitable year, Winnipeg, Manitoba
First-year saving of $49,000, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 6 · Cash and remittance control
Remittance Schedule Corrected, $38,000 Refunded — Professional Corporation, Guelph
Client: A professional corporation · Where: Guelph, Ontario · Engagement: 11 weeks, fixed fee
Overpayment refunded$38,000
Late remittances sinceZero
ScheduleAutomated
The situation — A professional corporation, Guelph, Ontario
Remittances at a professional corporation in Guelph, Ontario were consistently late by a few days. That was enough to trigger penalties every quarter. Behind it sat retained earnings building in the operating company with no plan for extracting them.
What we did for A professional corporation, Guelph, Ontario
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 we moved the remittance dates into a scheduled process rather than a monthly decision.
The result — A professional corporation, Guelph, Ontario
Penalties stopped from the following remittance onwards, and $38,000 of overpaid instalments was refunded.
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.
