6 worked Late 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 late corporate tax return work, not a specific client's file.
Case Study 1 · Records and systems rebuilt
Books Rebuilt From Source, $20,000 In Unclaimed Input Tax Found — Import and Distribution Corporation, Victoria
Client: An import and distribution corporation · Where: Victoria, British Columbia · Engagement: 10 weeks, fixed fee
Unclaimed tax found$20,000
Records rebuilt25 months
ProcessDocumented
The situation — An import and distribution corporation, Victoria, British Columbia
An import and distribution corporation in Victoria, British Columbia could not answer basic questions about its own numbers, because dividends moved up to a holding company year after year with no safe-income support on file sat between the bank statements and the ledger.
What we did for An import and distribution corporation, Victoria, British Columbia
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, then documented the process so the work does not depend on any one person remembering how it was done.
The result — An import and distribution corporation, Victoria, British Columbia
Records rebuilt and reconciled, $20,000 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 2 · CRA review defended
$85,000 Reassessment Reduced To Nil On Review — Corporation Holding Investments, Saskatoon
Client: An operating company holding surplus investments · Where: Saskatoon, Saskatchewan · Engagement: 3 weeks, fixed fee
Reassessment reduced toNil
Tax protected$85,000
Prior filingsUndisturbed
The situation — An operating company holding surplus investments, Saskatoon, Saskatchewan
A review notice arrived at an operating company holding surplus investments in Saskatoon, Saskatchewan covering late corporate tax return for two tax years. The auditor's working position was an adjustment of $85,000, driven by a small business limit quietly shared across three associated corporations nobody had mapped.
What we did for An operating company holding surplus investments, Saskatoon, Saskatchewan
Rather than negotiate, we rebuilt the record. We rebuilt the instalment schedule off the current year rather than the prior year, ending the interest accrual and submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result — An operating company holding surplus investments, Saskatoon, Saskatchewan
The auditor accepted the documented position and closed the review without adjustment, protecting $85,000 and leaving the prior filings undisturbed.
Client: A corporation with a non-calendar fiscal year-end · Where: Mississauga, Ontario · Engagement: 4 weeks, fixed fee
Annual saving$42,000
ReorganisationTax-neutral
StructureMatches operations
The situation — A corporation with a non-calendar fiscal year-end, Mississauga, Ontario
A corporation with a non-calendar fiscal year-end in Mississauga, Ontario was carrying passive investment income that had crossed the $50,000 grind threshold unnoticed, and every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did for A corporation with a non-calendar fiscal year-end, Mississauga, Ontario
Working with the client's lawyer, we reconstructed the capital dividend account from the underlying transactions and filed the subsection 83(2) election before the next distribution left the company and prepared the elections, resolutions and valuations the structure needed to stand up.
The result — A corporation with a non-calendar fiscal year-end, Mississauga, Ontario
The structure now matches the business. Annual saving of $42,000, and the reorganisation itself was tax-neutral.
Case Study 4 · Cash and remittance control
$76,000 Of Working Capital Freed From The Tax Cycle — Holding and Operating Companies, Barrie
Client: A holding company and its operating subsidiary · Where: Barrie, Ontario · Engagement: 9 weeks, fixed fee
Working capital freed$76,000
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation — A holding company and its operating subsidiary, Barrie, Ontario
A holding company and its operating subsidiary in Barrie, Ontario was profitable on paper and short of cash every month. A balance-due date the owner believed was the same as the filing date explained most of the gap.
What we did for A holding company and its operating subsidiary, Barrie, Ontario
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 built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result — A holding company and its operating subsidiary, Barrie, Ontario
$76,000 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 5 · Missed incentive claimed
Incentive Review Recovered $136,000 Across 3 Open Years — Second-Generation Manufacturer, Brampton
Client: A second-generation family manufacturer · Where: Brampton, Ontario · Engagement: 5 weeks, fixed fee
Recovered$136,000
Open years claimed3
Ongoing trackingIn place
The situation — A second-generation family manufacturer, Brampton, Ontario
An incentive review at a second-generation family manufacturer in Brampton, Ontario started from a simple question: what has never been claimed? The answer ran to 3 years, driven by dividends moved up to a holding company year after year with no safe-income support on file.
What we did for A second-generation family manufacturer, Brampton, Ontario
We modelled salary against dividends across both the corporation and the shareholder’s personal return, then set the remuneration mix for the year, documenting eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result — A second-generation family manufacturer, Brampton, Ontario
The credits produced $136,000 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 6 · Objection and relief
Desk-Review Assessment Of $28,000 Vacated — Incorporated Consultancy, Winnipeg
The situation — An incorporated consultancy, Winnipeg, Manitoba
An incorporated consultancy in Winnipeg, Manitoba was carrying $28,000 of penalties and interest arising from retained earnings building in the operating company with no plan for extracting them, much of it accumulated during a period the CRA itself had delayed.
What we did for An incorporated consultancy, Winnipeg, Manitoba
We documented safe income before the inter-corporate dividend was paid, so subsection 55(2) had no room to recharacterise it as a gain and framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result — An incorporated consultancy, Winnipeg, Manitoba
The assessment was vacated. $28,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
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.
