6 worked Multi-Entity Consolidated Reporting 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 multi-entity consolidated reporting work, not a specific client's file.
Case Study 1 · Missed incentive claimed
Incentive Review Recovered $15,000 Across 5 Open Years — Mid-Sized Services Firm, Barrie
Client: A mid-sized professional services firm · Where: Barrie, Ontario · Engagement: 5 weeks, fixed fee
Recovered$15,000
Open years claimed5
Ongoing trackingIn place
The situation — A mid-sized professional services firm, Barrie, Ontario
An incentive review at a mid-sized professional services firm in Barrie, Ontario started from a simple question: what has never been claimed? The answer ran to 5 years, driven by a borrowing drawn for an unrelated personal purchase with the interest claimed against the business.
What we did for A mid-sized professional services firm, Barrie, Ontario
We modelled the covenant ratios monthly and restructured the debt before the next test date rather than after it, documenting eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result — A mid-sized professional services firm, Barrie, Ontario
The credits produced $15,000 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, $495,000 Less Tax On Closing — Contractor Scaling Bids, Mississauga
Client: A construction company bidding larger contracts · Where: Mississauga, Ontario · Engagement: 9 weeks, fixed fee
Tax saved on closing$495,000
PriceAs agreed
Post-closing adjustmentsNone
The situation — A construction company bidding larger contracts, Mississauga, Ontario
A construction company bidding larger contracts in Mississauga, 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 for A construction company bidding larger contracts, Mississauga, Ontario
We cleaned up the historical file, produced a board-ready monthly package — cash, margin, pipeline and covenant headroom — that replaced a spreadsheet nobody trusted, and prepared the due-diligence package the buyer's advisers actually asked for.
The result — A construction company bidding larger contracts, Mississauga, Ontario
The deal closed at the agreed price. $495,000 of tax was saved against the structure originally proposed, with no post-closing adjustment.
Case Study 3 · Backlog brought current
5 Years Filed, $25,500 Removed From The Assessed Balance — Pre-Raise Technology Company, Saskatoon
Client: A technology company preparing to raise · Where: Saskatoon, Saskatchewan · Engagement: 5 weeks, fixed fee
Years filed5
Assessed balance removed$25,500
CollectionsStopped
The situation — A technology company preparing to raise, Saskatoon, Saskatchewan
A technology company preparing to raise in Saskatoon, Saskatchewan had not filed for 5 years. The CRA had issued arbitrary assessments, and the business was carrying a borrowing drawn for an unrelated personal purchase with the interest claimed against the business on top of a growing interest balance.
What we did for A technology company preparing to raise, Saskatoon, Saskatchewan
We started with the oldest year and worked forward so each year's closing balances fed the next. We separated customer prepayments from earned revenue in the reporting, so the cash position and the tax position were visible at the same time, filing the years in sequence rather than all at once.
The result — A technology company preparing to raise, Saskatoon, Saskatchewan
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $25,500 of the estimated balance came off, with a payment arrangement covering the rest.
Case Study 4 · Structure rebuilt
Corporate Structure Rebuilt For $59,000 Of Annual Savings — Corporation Facing Covenant Test, Victoria
Client: A corporation approaching a covenant test date · Where: Victoria, British Columbia · Engagement: 9 weeks, fixed fee
Saving per year$59,000
DocumentationComplete
Transfer basisRollover
The situation — A corporation approaching a covenant test date, Victoria, British Columbia
The structure at a corporation approaching a covenant test date in Victoria, British Columbia had been set up years earlier for a business that no longer existed, and a growth plan with no forecast behind it and no financing lined up had become expensive.
What we did for A corporation approaching a covenant test date, Victoria, British Columbia
We traced each borrowing to what it actually funded and kept the interest deduction on the portion used to earn business income. The reorganisation used the rollover provisions rather than a taxable transfer, so no tax fell due on the restructuring itself.
The result — A corporation approaching a covenant test date, Victoria, British Columbia
$59,000 of annual saving, achieved on a tax-deferred basis. The minute book, elections and valuations are all in the file.
Case Study 5 · Objection and relief
$61,000 Of Penalties And Interest Cancelled On Relief — Fast-Growing E-Commerce Brand, Toronto
The situation — A fast-growing e-commerce brand, Toronto, Ontario
An assessment of $61,000 landed at a fast-growing e-commerce brand in Toronto, Ontario following a desk review. The auditor had not seen the records behind an owner making hiring decisions on last quarter’s bank balance.
What we did for A fast-growing e-commerce brand, Toronto, Ontario
We added the balance sheet and a cash view to the monthly package, so the owner saw working capital move rather than only profit, then set out the legislative basis for the position alongside the documents supporting it.
The result — A fast-growing e-commerce brand, Toronto, Ontario
$61,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 6 · Deadline rescue
$76,000 Late-Filing Penalty Cancelled On Relief Application — Second-Province Distributor, Hamilton
Client: A distributor entering a second province · Where: Hamilton, Ontario · Engagement: 4 weeks, fixed fee
Penalty cancelled$76,000
Relief applicationGranted
ReturnAccepted as filed
The situation — A distributor entering a second province, Hamilton, Ontario
A distributor entering a second province in Hamilton, Ontario had already missed one deadline and was about to miss a second. Behind it sat pricing set by feel, with no visibility into margin by service line, and a penalty of $76,000 was accruing.
What we did for A distributor entering a second province, Hamilton, Ontario
We split the work into what had to happen before the deadline and what could follow it, then set a quarterly tax provision, so the instalments and the year-end balance were funded before they came due.
The result — A distributor entering a second province, Hamilton, Ontario
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $76,000 of the penalty already assessed on the earlier year.
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.
