6 New Corporation Accounting Setup 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 new corporation accounting setup work, not a general example.
Case Study 1 · Cash and remittance control
Instalments Rebased, $96,000 Of Cash Returned To The Business — Professional Forming a Professional, Victoria
Client: A professional forming a professional corporation · Where: Victoria, British Columbia · Engagement: 5 weeks, fixed fee
Cash returned$96,000
Instalment basisCurrent year
ReviewedQuarterly
The situation
A professional forming a professional corporation in Victoria, British Columbia was paying instalments calculated on a prior year that no longer reflected the business. A December 31 year-end chosen by default that put the balance due at the worst point in the cash cycle was tying up $96,000 of cash.
What we did
We rebased the instalments on the current-year estimate rather than the prior-year default, and restructured the share capital so dividends could be directed deliberately, respecting the TOSI rules.
The result
$96,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 2 · Missed incentive claimed
$137,000 In Credits Claimed That Prior Filings Had Missed — Partnership Converting to a, Red Deer
Client: A partnership converting to a corporation · Where: Red Deer, Alberta · Engagement: 4 weeks, fixed fee
Credits claimed$137,000
Years adjusted4
Review outcomeNo adjustment
The situation
A partnership converting to a corporation in Red Deer, Alberta had been filing for 4 years without ever claiming the incentives its activity qualified for. Behind that sat GST/HST collected for eight months before the RT account was ever opened.
What we did
We tested each activity against the eligibility criteria rather than the description on the invoice, then reconstructed the minute book with resolutions for each historical dividend and share transaction.
The result
$137,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 3 · Objection and relief
$68,000 Of Penalties And Interest Cancelled On Relief — Startup Preparing for Its, Kitchener
Client: A startup preparing for its first investment round · Where: Kitchener, Ontario · Engagement: 8 weeks, fixed fee
Penalties and interest cancelled$68,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation
An assessment of $68,000 landed at a startup preparing for its first investment round in Kitchener, Ontario following a desk review. The auditor had not seen the records behind GST/HST collected for eight months before the RT account was ever opened.
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, then set out the legislative basis for the position alongside the documents supporting it.
The result
$68,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 4 · Planning that cut the bill
$10,500 Saved By Correcting What Prior Filings Had Missed — Trades Business Incorporating Provincially, Regina
Client: A trades business incorporating provincially · Where: Regina, Saskatchewan · Engagement: 7 weeks, fixed fee
Saving identified$10,500
RecurringYes
Positions documentedAll
The situation
A trades business incorporating provincially in Regina, Saskatchewan asked for a second opinion on new corporation accounting setup after three years of rising tax. The review found a single class of common shares that made income splitting impossible.
What we did
We built the comparison first — current structure against two alternatives — and then revived the corporation, filed the outstanding annual returns, and set a compliance calendar covering both the corporate registry and the CRA.
The result
First-year saving of $10,500, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 5 · Sale and succession
$215,000 Sheltered By The Lifetime Capital Gains Exemption — Corporation Reviving After Administrative, Brampton
Client: A corporation reviving after administrative dissolution · Where: Brampton, Ontario · Engagement: 11 weeks, fixed fee
Gain sheltered$215,000
ClosingOn schedule
Share qualificationMet
The situation
A corporation reviving after administrative dissolution in Brampton, Ontario had an offer on the table and 11 months to close. The shares did not qualify for the capital gains exemption, and retained cash well above what the business needed to operate was part of the reason.
What we did
We purified the corporation so the shares met the qualifying tests, then restructured the share capital so dividends could be directed deliberately, respecting the TOSI rules well ahead of the closing date.
The result
The sale closed on schedule with $215,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 6 · Deadline rescue
11-Week Turnaround Beat The Deadline And Saved $144,000 — Family Business Adding a, Burnaby
Client: A family business adding a second class of shares · Where: Burnaby, British Columbia · Engagement: 11 weeks, fixed fee
Late-filing penalty avoided$144,000
Filed with20 days to spare
Next yearPapers ready
The situation
With the deadline for new corporation accounting setup weeks away, a family business adding a second class of shares in Burnaby, British Columbia was carrying a December 31 year-end chosen by default that put the balance due at the worst point in the cash cycle. The exposure if the date slipped was around $144,000.
What we did
We reconstructed the minute book with resolutions for each historical dividend and share transaction. The filing went in complete rather than provisional, so there was no amended return to follow.
The result
Filed with 20 days to spare. $144,000 in late-filing penalties avoided, and the working papers are ready for the following 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.
