6 Joint Venture Accounting and 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 joint venture accounting and tax work, not a general example.
Case Study 1 · Missed incentive claimed
Incentive Review Recovered $116,000 Across 4 Open Years — Farming Partnership, Regina
An incentive review at a farming partnership in Regina, Saskatchewan started from a simple question: what has never been claimed? The answer ran to 4 years, driven by an incorporation completed without the section 85 election, triggering an unnecessary gain.
What we did
We filed the outstanding T5013 returns with full partner allocations and requested penalty relief on the basis of the first-time nature of the failure, documenting eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result
The credits produced $116,000 across the open years, and the tracking now in place means the following year's claim is documented as the work happens rather than reconstructed afterwards.
Case Study 2 · Sale and succession
Share Sale Restructured, $240,000 Less Tax On Closing — Freelance Developer, Toronto
A freelance developer in Toronto, Ontario was preparing to sell. Due diligence surfaced passive assets sitting inside the operating company, disqualifying the shares, which would have reduced the price or killed the deal outright.
What we did
We cleaned up the historical file, filed the section 85 election with correct elected amounts and rolled the assets in without a taxable disposition, and prepared the due-diligence package the buyer's advisers actually asked for.
The result
The deal closed at the agreed price. $240,000 of tax was saved against the structure originally proposed, with no post-closing adjustment.
Case Study 3 · Backlog brought current
5 Years Filed, $73,000 Removed From The Assessed Balance — Two-Partner Architecture Practice, Saskatoon
Client: A two-partner architecture practice · Where: Saskatoon, Saskatchewan · Engagement: 4 weeks, fixed fee
Years filed5
Assessed balance removed$73,000
CollectionsStopped
The situation
A two-partner architecture practice in Saskatoon, Saskatchewan had not filed for 5 years. The CRA had issued arbitrary assessments, and the business was carrying a profit split applied in practice that the written agreement did not support 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 rewrote the partnership allocation to match how the practice actually operated, effective for the following fiscal year, 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 $73,000 of the estimated balance came off, with a payment arrangement covering the rest.
Client: A three-partner medical clinic · Where: Barrie, Ontario · Engagement: 9 weeks, fixed fee
Annual saving$57,000
ReorganisationTax-neutral
StructureMatches operations
The situation
A three-partner medical clinic in Barrie, Ontario was carrying business income reported entirely on one spouse’s return despite shared operations, and every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did
Working with the client's lawyer, we restructured the draw policy so no partner’s adjusted cost base went negative again, and reported the deemed gain correctly for the year it arose and prepared the elections, resolutions and valuations the structure needed to stand up.
The result
The structure now matches the business. Annual saving of $57,000, and the reorganisation itself was tax-neutral.
Case Study 5 · Objection and relief
Notice Of Objection Allowed In Full, $142,000 Reversed — Joint-Venture Property Partnership, Winnipeg
A joint-venture property partnership in Winnipeg, Manitoba had been reassessed for $142,000 and had 11 days left on the objection deadline. The reassessment rested on an incorporation completed without the section 85 election, triggering an unnecessary gain.
What we did
We filed the objection inside the deadline with a complete submission rather than a placeholder, and filed the outstanding T5013 returns with full partner allocations and requested penalty relief on the basis of the first-time nature of the failure.
The result
The appeals officer allowed the objection in full. $142,000 was reversed and the account returned to a nil balance.
Case Study 6 · Deadline rescue
$71,000 Late-Filing Penalty Cancelled On Relief Application — Food-Truck Sole Proprietorship, Red Deer
Client: A food-truck sole proprietorship · Where: Red Deer, Alberta · Engagement: 9 weeks, fixed fee
Penalty cancelled$71,000
Relief applicationGranted
ReturnAccepted as filed
The situation
A food-truck sole proprietorship in Red Deer, Alberta had already missed one deadline and was about to miss a second. Behind it sat a partnership that crossed the T5013 threshold two years before anyone noticed, and a penalty of $71,000 was accruing.
What we did
We split the work into what had to happen before the deadline and what could follow it, then filed the section 85 election with correct elected amounts and rolled the assets in without a taxable disposition.
The result
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $71,000 of the penalty already assessed on the earlier year.
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.
