6 worked Internal Controls Design 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 internal controls design work, not a specific client's file.
Case Study 1 · Missed incentive claimed
$98,000 In Credits Claimed That Prior Filings Had Missed — Expanding Manufacturer, Moncton
Client: A manufacturer planning a plant expansion · Where: Moncton, New Brunswick · Engagement: 5 weeks, fixed fee
Credits claimed$98,000
Years adjusted4
Review outcomeNo adjustment
The situation — A manufacturer planning a plant expansion, Moncton, New Brunswick
A manufacturer planning a plant expansion in Moncton, New Brunswick had been filing for 4 years without ever claiming the incentives its activity qualified for. Behind that sat a healthy bank balance made up almost entirely of deposits for work not yet performed.
What we did for A manufacturer planning a plant expansion, Moncton, New Brunswick
We tested each activity against the eligibility criteria rather than the description on the invoice, then rebuilt the reporting around gross margin by service line, which showed two of five offerings were losing money at the current price.
The result — A manufacturer planning a plant expansion, Moncton, New Brunswick
$98,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 2 · Scaling without breaking
Growth Handled Without A Missed Filing, $56,000 Freed — Succession-Planning Family Business, Ottawa
Client: A family business planning succession · Where: Ottawa, Ontario · Engagement: 7 weeks, fixed fee
Cash freed$56,000
Compliance failuresNone
ReportingMonthly
The situation — A family business planning succession, Ottawa, Ontario
A family business planning succession in Ottawa, Ontario was opening in a second province — different filing obligations, a different payroll regime, and revenue up 40% year over year and a bank balance that kept falling already in the file.
What we did for A family business planning succession, Ottawa, Ontario
We produced a board-ready monthly package — cash, margin, pipeline and covenant headroom — that replaced a spreadsheet nobody trusted 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 family business planning succession, Ottawa, Ontario
Growth was absorbed without a compliance failure. $56,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 3 · Cash and remittance control
$25,500 Of Working Capital Freed From The Tax Cycle — Practice Adding Partners, Kitchener
Client: A professional practice adding partners · Where: Kitchener, Ontario · Engagement: 3 weeks, fixed fee
Working capital freed$25,500
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation — A professional practice adding partners, Kitchener, Ontario
A professional practice adding partners in Kitchener, Ontario was profitable on paper and short of cash every month. A monthly report that stopped at the income statement, with no balance sheet and no cash view explained most of the gap.
What we did for A professional practice adding partners, Kitchener, Ontario
We traced each borrowing to what it actually funded and kept the interest deduction on the portion used to earn business income and built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result — A professional practice adding partners, Kitchener, Ontario
$25,500 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 4 · Deadline rescue
$99,000 Late-Filing Penalty Cancelled On Relief Application — Multi-Line Service Business, Calgary
Client: A business whose margin varies by service line · Where: Calgary, Alberta · Engagement: 7 weeks, fixed fee
Penalty cancelled$99,000
Relief applicationGranted
ReturnAccepted as filed
The situation — A business whose margin varies by service line, Calgary, Alberta
A business whose margin varies by service line in Calgary, Alberta had already missed one deadline and was about to miss a second. Behind it sat a borrowing drawn for an unrelated personal purchase with the interest claimed against the business, and a penalty of $99,000 was accruing.
What we did for A business whose margin varies by service line, Calgary, Alberta
We split the work into what had to happen before the deadline and what could follow it, then set a quarterly tax provision, so the instalments and the year-end balance were funded before they came due.
The result — A business whose margin varies by service line, Calgary, Alberta
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $99,000 of the penalty already assessed on the earlier year.
Case Study 5 · Structure rebuilt
Corporate Structure Rebuilt For $51,000 Of Annual Savings — Subscription Business, London
Client: A subscription business tracking churn · Where: London, Ontario · Engagement: 6 weeks, fixed fee
Saving per year$51,000
DocumentationComplete
Transfer basisRollover
The situation — A subscription business tracking churn, London, Ontario
The structure at a subscription business tracking churn in London, Ontario had been set up years earlier for a business that no longer existed, and a healthy bank balance made up almost entirely of deposits for work not yet performed had become expensive.
What we did for A subscription business tracking churn, London, Ontario
We modelled the covenant ratios monthly and restructured the debt before the next test date rather than after it. The reorganisation used the rollover provisions rather than a taxable transfer, so no tax fell due on the restructuring itself.
The result — A subscription business tracking churn, London, Ontario
$51,000 of annual saving, achieved on a tax-deferred basis. The minute book, elections and valuations are all in the file.
Case Study 6 · Sale and succession
$400,000 Sheltered By The Lifetime Capital Gains Exemption — First Finance Hire, Kelowna
Client: A company hiring its first finance staff · Where: Kelowna, British Columbia · Engagement: 10 weeks, fixed fee
Gain sheltered$400,000
ClosingOn schedule
Share qualificationMet
The situation — A company hiring its first finance staff, Kelowna, British Columbia
A company hiring its first finance staff in Kelowna, British Columbia had an offer on the table and 20 months to close. The shares did not qualify for the capital gains exemption, and a shareholder loan balance that would have been picked up as income on closing was part of the reason.
What we did for A company hiring its first finance staff, Kelowna, British Columbia
We purified the corporation so the shares met the qualifying tests, then separated customer prepayments from earned revenue in the reporting, so the cash position and the tax position were visible at the same time well ahead of the closing date.
The result — A company hiring its first finance staff, Kelowna, British Columbia
The sale closed on schedule with $400,000 sheltered by the lifetime capital gains exemption across the shareholders.
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.
