6 worked Local Resident Director Services 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 local resident director services work, not a specific client's file.
Case Study 1 · Records and systems rebuilt
Month-End Close Cut From 8 Weeks To 6 Days — Extra-Provincial Registrant, Hamilton
Client: An owner registering extra-provincially in a second province · Where: Hamilton, Ontario · Engagement: 5 weeks, fixed fee
Close time before8 weeks
Close time after6 days
Year-endReview, not rebuild
The situation — An owner registering extra-provincially in a second province, Hamilton, Ontario
The accounting file at an owner registering extra-provincially in a second province in Hamilton, Ontario had a weak foundation. It was built on a spouse added as a shareholder on the assumption dividends could simply be split between two returns. The year-end had taken 8 weeks each of the last three years.
What we did for An owner registering extra-provincially in a second province, Hamilton, Ontario
We opened the register of individuals with significant control and put its review on the same annual cycle as the corporate annual return. We also moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result — An owner registering extra-provincially in a second province, Hamilton, Ontario
The file reconciles. Month-end closes in 6 days instead of 8 weeks, and the year-end is a review rather than a reconstruction.
Case Study 2 · Scaling without breaking
Growth Handled Without A Missed Filing, $109,000 Freed — New Program Registrant, Mississauga
Client: A corporation registering its CRA program accounts · Where: Mississauga, Ontario · Engagement: 4 weeks, fixed fee
Cash freed$109,000
Compliance failuresNone
ReportingMonthly
The situation — A corporation registering its CRA program accounts, Mississauga, Ontario
A corporation registering its CRA program accounts in Mississauga, Ontario was opening in a second province. That meant different filing obligations and a different payroll regime. Dividends paid for three years with no directors’ resolutions behind them already sat in the file.
What we did for A corporation registering its CRA program accounts, Mississauga, Ontario
We tested each intended dividend recipient against the excluded-amount tests before any dividend was declared, and recorded which test was being relied on. We then put monthly reporting in place. That let the owner see the cash effect of growth while there was still time to act on it.
The result — A corporation registering its CRA program accounts, Mississauga, Ontario
Growth was absorbed without a compliance failure. $109,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 3 · Sale and succession
Share Sale Restructured, $445,000 Less Tax On Closing — Reviving Corporation, Lethbridge
Client: A corporation reviving after administrative dissolution · Where: Lethbridge, Alberta · Engagement: 9 weeks, fixed fee
Tax saved on closing$445,000
PriceAs agreed
Post-closing adjustmentsNone
The situation — A corporation reviving after administrative dissolution, Lethbridge, Alberta
A corporation reviving after administrative dissolution in Lethbridge, Alberta was preparing to sell. Due diligence surfaced a minute book with no resolutions behind a decade of dividends. That would have reduced the price or killed the deal outright.
What we did for A corporation reviving after administrative dissolution, Lethbridge, Alberta
We cleaned up the historical file. We restructured the share capital so dividends could be directed deliberately, respecting the TOSI rules. Then we prepared the due-diligence package the buyer's advisers actually asked for.
The result — A corporation reviving after administrative dissolution, Lethbridge, Alberta
The deal closed at the agreed price. $445,000 of tax was saved against the structure originally proposed, with no post-closing adjustment.
Case Study 4 · Objection and relief
Desk-Review Assessment Of $39,000 Vacated — Pre-Investment Startup, Moncton
Client: A startup preparing for its first investment round · Where: Moncton, New Brunswick · Engagement: 6 weeks, fixed fee
Assessment vacated$39,000
Supporting recordsNow on file
AccountCleared
The situation — A startup preparing for its first investment round, Moncton, New Brunswick
A startup preparing for its first investment round in Moncton, New Brunswick was carrying $39,000 of penalties and interest. The charges arose from GST/HST collected for eight months before the RT account was ever opened. Much of that amount accumulated during a period the CRA itself had delayed.
What we did for A startup preparing for its first investment round, Moncton, New Brunswick
We reconstructed the minute book with resolutions for each historical dividend and share transaction. We framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result — A startup preparing for its first investment round, Moncton, New Brunswick
The assessment was vacated. $39,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Case Study 5 · Cash and remittance control
$109,000 Of Working Capital Freed From The Tax Cycle — New Professional Corporation, Kitchener
Client: A professional forming a professional corporation · Where: Kitchener, Ontario · Engagement: 7 weeks, fixed fee
Working capital freed$109,000
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation — A professional forming a professional corporation, Kitchener, Ontario
A professional forming a professional corporation in Kitchener, Ontario was profitable on paper and short of cash every month. A December 31 year-end chosen by default that put the balance due at the worst point in the cash cycle explained most of the gap.
What we did for A professional forming a professional corporation, Kitchener, Ontario
We selected a year-end that put the balance-due date after the seasonal cash peak, then registered every program account the business actually needed. We also built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result — A professional forming a professional corporation, Kitchener, Ontario
$109,000 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 6 · CRA review defended
$91,000 Proposed Adjustment Withdrawn In Full — Provincially Incorporating Trades Business, London
Client: A trades business incorporating provincially · Where: London, Ontario · Engagement: 7 weeks, fixed fee
Adjustment withdrawn$91,000
File closed in7 weeks
Penalties assessedNone
The situation — A trades business incorporating provincially, London, Ontario
A trades business incorporating provincially in London, Ontario received a proposal letter opening a review of local resident director services. The CRA had identified a register of individuals with significant control that had never been opened, let alone updated. It proposed an adjustment of $91,000, with 30 days to respond.
What we did for A trades business incorporating provincially, London, Ontario
We treated the response as an evidence exercise rather than an argument. We revived the corporation, filed the outstanding annual returns, and set a compliance calendar covering both the corporate registry and the CRA. We then indexed every supporting document against the specific line the auditor had questioned.
The result — A trades business incorporating provincially, London, Ontario
The proposed adjustment was withdrawn in full — all $91,000 of it. The file closed in 7 weeks with no change to the assessed amounts and no penalty.
Reviewed by Udit Gupta, Founder and Tax Accountant for the 2025 tax year. 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.
