6 Holding Company Tax Return 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 holding company tax return work, not a general example.
Case Study 1 · Missed incentive claimed
$30,500 In Credits Claimed That Prior Filings Had Missed — Incorporated Trades Business, Barrie
Client: An incorporated trades business · Where: Barrie, Ontario · Engagement: 11 weeks, fixed fee
Credits claimed$30,500
Years adjusted3
Review outcomeNo adjustment
The situation
An incorporated trades business in Barrie, Ontario had been filing for 3 years without ever claiming the incentives its activity qualified for. Behind that sat two corporations under common control filing as if each had its own $500,000 limit.
What we did
We tested each activity against the eligibility criteria rather than the description on the invoice, then rebuilt the instalment schedule off the current year rather than the prior year, ending the interest accrual.
The result
$30,500 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 2 · Backlog brought current
Collections Halted And $106,000 Cut From A 3-Year Backlog — Franchise Operator with Three, Kelowna
Client: A franchise operator with three locations · Where: Kelowna, British Columbia · Engagement: 3 weeks, fixed fee
Balance reduced by$106,000
Backlog cleared3 years
CollectionsHalted
The situation
By the time a franchise operator with three locations in Kelowna, British Columbia called, 3 years were outstanding and the CRA had assessed on estimates. Underneath it sat a balance-due date the owner believed was the same as the filing date.
What we did
We reconstructed the records year by year and moved passive holdings into a separate structure so the operating company’s small business limit stopped grinding down. Each filing replaced an arbitrary assessment with a real one.
The result
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $106,000, and a relief application addressed part of the accumulated interest.
Case Study 3 · Objection and relief
Desk-Review Assessment Of $41,000 Vacated — CCPC with Two Shareholders, Guelph
Client: A CCPC with two shareholders · Where: Guelph, Ontario · Engagement: 7 weeks, fixed fee
Assessment vacated$41,000
Supporting recordsNow on file
AccountCleared
The situation
A CCPC with two shareholders in Guelph, Ontario was carrying $41,000 of penalties and interest arising from a small business limit quietly shared across three associated corporations nobody had mapped, much of it accumulated during a period the CRA itself had delayed.
What we did
We mapped the association rules across the group, allocated the business limit deliberately on Schedule 23, and corrected the prior year by adjustment request and framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result
The assessment was vacated. $41,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Case Study 4 · Records and systems rebuilt
Books Rebuilt From Source, $17,000 In Unclaimed Input Tax Found — Corporately-Owned Rental Portfolio, Lethbridge
Client: A corporately-owned rental portfolio · Where: Lethbridge, Alberta · Engagement: 7 weeks, fixed fee
Unclaimed tax found$17,000
Records rebuilt33 months
ProcessDocumented
The situation
A corporately-owned rental portfolio in Lethbridge, Alberta could not answer basic questions about its own numbers, because two corporations under common control filing as if each had its own $500,000 limit sat between the bank statements and the ledger.
What we did
We modelled salary against dividends across both the corporation and the shareholder’s personal return, then set the remuneration mix for the year, then documented the process so the work does not depend on any one person remembering how it was done.
The result
Records rebuilt and reconciled, $17,000 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 5 · Planning that cut the bill
$73,000 Cut From The Annual Tax Bill — Professional Corporation, Toronto
Client: A professional corporation · Where: Toronto, Ontario · Engagement: 10 weeks, fixed fee
First-year saving$73,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation
A professional corporation in Toronto, Ontario was compliant but paying more than it needed to. The prior year had been filed correctly and still left passive investment income that had crossed the $50,000 grind threshold unnoticed on the table.
What we did
We modelled the current position against the alternatives before changing anything, then rebuilt the instalment schedule off the current year rather than the prior year, ending the interest accrual.
The result
The change saved $73,000 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 6 · CRA review defended
$138,000 Proposed Adjustment Withdrawn In Full — Import and Distribution Corporation, Calgary
Client: An import and distribution corporation · Where: Calgary, Alberta · Engagement: 7 weeks, fixed fee
Adjustment withdrawn$138,000
File closed in7 weeks
Penalties assessedNone
The situation
An import and distribution corporation in Calgary, Alberta received a proposal letter opening a review of holding company tax return. The CRA had identified retained earnings building in the operating company with no plan for extracting them and proposed an adjustment of $138,000, with 30 days to respond.
What we did
We treated the response as an evidence exercise rather than an argument. We moved passive holdings into a separate structure so the operating company’s small business limit stopped grinding down, then indexed every supporting document against the specific line the auditor had questioned.
The result
The proposed adjustment was withdrawn in full — all $138,000 of it. The file closed in 7 weeks with no change to the assessed amounts and no penalty.
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.
