6 Local Resident Director Services 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 local resident director services work, not a general example.
Case Study 1 · Records and systems rebuilt
Month-End Close Cut From 8 Weeks To 6 Days — Partnership Converting to a, Hamilton
Client: A partnership converting to a corporation · Where: Hamilton, Ontario · Engagement: 5 weeks, fixed fee
Close time before8 weeks
Close time after6 days
Year-endReview, not rebuild
The situation
The accounting file at a partnership converting to a corporation in Hamilton, Ontario was built on dividends paid for three years with no directors’ resolutions behind them. The year-end had taken 8 weeks each of the last three years.
What we did
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 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 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 — Family Business Adding a, Mississauga
Client: A family business adding a second class of shares · Where: Mississauga, Ontario · Engagement: 4 weeks, fixed fee
Cash freed$109,000
Compliance failuresNone
ReportingMonthly
The situation
A family business adding a second class of shares in Mississauga, Ontario was opening in a second province — different filing obligations, a different payroll regime, and GST/HST collected for eight months before the RT account was ever opened already in the file.
What we did
We restructured the share capital so dividends could be directed deliberately, respecting the TOSI rules 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
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 — Founder Setting Up a, Lethbridge
Client: A founder setting up a holding structure · Where: Lethbridge, Alberta · Engagement: 9 weeks, fixed fee
Tax saved on closing$445,000
PriceAs agreed
Post-closing adjustmentsNone
The situation
A founder setting up a holding structure in Lethbridge, Alberta was preparing to sell. Due diligence surfaced a minute book with no resolutions behind a decade of dividends, which would have reduced the price or killed the deal outright.
What we did
We cleaned up the historical file, reconstructed the minute book with resolutions for each historical dividend and share transaction, and prepared the due-diligence package the buyer's advisers actually asked for.
The result
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 — Startup Preparing for Its, 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 in Moncton, New Brunswick was carrying $39,000 of penalties and interest arising from a single class of common shares that made income splitting impossible, much of it accumulated during a period the CRA itself had delayed.
What we did
We revived the corporation, filed the outstanding annual returns, and set a compliance calendar covering both the corporate registry and the CRA and framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result
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 — Trades Business Incorporating Provincially, Kitchener
Client: A trades business incorporating provincially · Where: Kitchener, Ontario · Engagement: 7 weeks, fixed fee
Working capital freed$109,000
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation
A trades business incorporating provincially in Kitchener, Ontario was profitable on paper and short of cash every month. A corporation dissolved administratively for missed annual returns while still operating explained most of the gap.
What we did
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 and built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result
$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 — Contractor Incorporating for Liability, London
Client: A contractor incorporating for liability reasons · Where: London, Ontario · Engagement: 7 weeks, fixed fee
Adjustment withdrawn$91,000
File closed in7 weeks
Penalties assessedNone
The situation
A contractor incorporating for liability reasons in London, Ontario received a proposal letter opening a review of local resident director services. The CRA had identified dividends paid for three years with no directors’ resolutions behind them and proposed an adjustment of $91,000, with 30 days to respond.
What we did
We treated the response as an evidence exercise rather than an argument. We restructured the share capital so dividends could be directed deliberately, respecting the TOSI rules, then indexed every supporting document against the specific line the auditor had questioned.
The result
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 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.
