6 Investment Corporation 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 investment corporation tax return work, not a general example.
Case Study 1 · Missed incentive claimed
$78,000 In Credits Claimed That Prior Filings Had Missed — Technology CCPC Approaching Its, Calgary
Client: A technology CCPC approaching its first profitable year · Where: Calgary, Alberta · Engagement: 8 weeks, fixed fee
Credits claimed$78,000
Years adjusted3
Review outcomeNo adjustment
The situation
A technology CCPC approaching its first profitable year in Calgary, Alberta had been filing for 3 years without ever claiming the incentives its activity qualified for. Behind that sat a balance-due date the owner believed was the same as the filing date.
What we did
We tested each activity against the eligibility criteria rather than the description on the invoice, then modelled salary against dividends across both the corporation and the shareholder’s personal return, then set the remuneration mix for the year.
The result
$78,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 2 · CRA review defended
$27,000 Proposed Adjustment Withdrawn In Full — Incorporated Consultancy, Barrie
An incorporated consultancy in Barrie, Ontario received a proposal letter opening a review of investment corporation tax return. The CRA had identified a balance-due date the owner believed was the same as the filing date and proposed an adjustment of $27,000, 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The proposed adjustment was withdrawn in full — all $27,000 of it. The file closed in 10 weeks with no change to the assessed amounts and no penalty.
Case Study 3 · Scaling without breaking
Second-Province Expansion Handled, $35,500 Of Cash Released — Second-Generation Family Manufacturer, Kitchener
Client: A second-generation family manufacturer · Where: Kitchener, Ontario · Engagement: 3 weeks, fixed fee
Cash released$35,500
New registrationsComplete on day one
Compliance gapsNone
The situation
Revenue at a second-generation family manufacturer in Kitchener, Ontario was up sharply and cash was tighter than ever. Underneath it sat passive investment income that had crossed the $50,000 grind threshold unnoticed.
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. Every new obligation — registration, remittance frequency, provincial filing — was set up before it was triggered, not after.
The result
$35,500 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 4 · Planning that cut the bill
Remuneration Review Saved $51,000 Across Corporate And Personal Returns — Holding Company and Its, Saskatoon
Client: A holding company and its operating subsidiary · Where: Saskatoon, Saskatchewan · Engagement: 3 weeks, fixed fee
Combined saving$51,000
ScopeCorporate + personal
Future yearsNo rework needed
The situation
Nothing was wrong at a holding company and its operating subsidiary in Saskatoon, Saskatchewan — the filings were on time and accurate. What they were not was planned. A small business limit quietly shared across three associated corporations nobody had mapped had never been reviewed.
What we did
We rebuilt the instalment schedule off the current year rather than the prior year, ending the interest accrual, and ran the numbers across both the corporate and personal returns so the saving was real rather than deferred into someone else's hands.
The result
$51,000 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
Case Study 5 · Cash and remittance control
Instalments Rebased, $80,000 Of Cash Returned To The Business — Import and Distribution Corporation, Ottawa
Client: An import and distribution corporation · Where: Ottawa, Ontario · Engagement: 10 weeks, fixed fee
Cash returned$80,000
Instalment basisCurrent year
ReviewedQuarterly
The situation
An import and distribution corporation in Ottawa, Ontario was paying instalments calculated on a prior year that no longer reflected the business. Retained earnings building in the operating company with no plan for extracting them was tying up $80,000 of cash.
What we did
We rebased the instalments on the current-year estimate rather than the prior-year default, and modelled salary against dividends across both the corporation and the shareholder’s personal return, then set the remuneration mix for the year.
The result
$80,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 6 · Records and systems rebuilt
Month-End Close Cut From 11 Weeks To 8 Days — Incorporated Trades Business, Toronto
Client: An incorporated trades business · Where: Toronto, Ontario · Engagement: 8 weeks, fixed fee
Close time before11 weeks
Close time after8 days
Year-endReview, not rebuild
The situation
The accounting file at an incorporated trades business in Toronto, Ontario was built on two corporations under common control filing as if each had its own $500,000 limit. The year-end had taken 11 weeks each of the last three years.
What we did
We moved passive holdings into a separate structure so the operating company’s small business limit stopped grinding down and moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result
The file reconciles. Month-end closes in 8 days instead of 11 weeks, and the year-end is a review rather than a reconstruction.
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.
