6 worked Ontario Incorporation 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 ontario incorporation work, not a specific client's file.
Case Study 1 · Deadline rescue
$25,500 Late-Filing Penalty Cancelled On Relief Application — Holding Structure Founder, Vancouver
Client: A founder setting up a holding structure · Where: Vancouver, British Columbia · Engagement: 3 weeks, fixed fee
Penalty cancelled$25,500
Relief applicationGranted
ReturnAccepted as filed
The situation — A founder setting up a holding structure, Vancouver, British Columbia
A founder setting up a holding structure in Vancouver, British Columbia had already missed one deadline and was about to miss a second. Behind it sat a corporation dissolved administratively for missed annual returns while still operating. A penalty of $25,500 was accruing.
What we did for A founder setting up a holding structure, Vancouver, British Columbia
We split the work into what had to happen before the deadline and what could follow it. Then we revived the corporation, filed the outstanding annual returns, and set a compliance calendar covering both the corporate registry and the CRA.
The result — A founder setting up a holding structure, Vancouver, British Columbia
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $25,500 of the penalty already assessed on the earlier year.
Case Study 2 · Records and systems rebuilt
Month-End Close Cut From 12 Weeks To 6 Days — Converting Partnership, Ottawa
Client: A partnership converting to a corporation · Where: Ottawa, Ontario · Engagement: 3 weeks, fixed fee
Close time before12 weeks
Close time after6 days
Year-endReview, not rebuild
The situation — A partnership converting to a corporation, Ottawa, Ontario
The accounting file at a partnership converting to a corporation in Ottawa, Ontario had a weak foundation. It was built on a December 31 year-end chosen by default that put the balance due at the worst point in the cash cycle. The year-end had taken 12 weeks each of the last three years.
What we did for A partnership converting to a corporation, Ottawa, Ontario
We restructured the share capital so dividends could be directed deliberately, respecting the TOSI rules. We also moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result — A partnership converting to a corporation, Ottawa, Ontario
The file reconciles. Month-end closes in 6 days instead of 12 weeks, and the year-end is a review rather than a reconstruction.
Case Study 3 · Cash and remittance control
Instalments Rebased, $50,000 Of Cash Returned To The Business — Newly Incorporating Consultant, Surrey
Client: A consultant incorporating after two years of self-employment · Where: Surrey, British Columbia · Engagement: 10 weeks, fixed fee
Cash returned$50,000
Instalment basisCurrent year
ReviewedQuarterly
The situation — A consultant incorporating after two years of self-employment, Surrey, British Columbia
A consultant incorporating after two years of self-employment in Surrey, British Columbia was paying instalments calculated on a prior year. That year no longer reflected the business. Dividends paid for three years with no directors’ resolutions behind them was tying up $50,000 of cash.
What we did for A consultant incorporating after two years of self-employment, Surrey, British Columbia
We rebased the instalments on the current-year estimate rather than the prior-year default. Alongside that, we filed the change of registered office and the director changes, so registry correspondence reached someone who read it.
The result — A consultant incorporating after two years of self-employment, Surrey, British Columbia
$50,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 4 · Planning that cut the bill
Remuneration Review Saved $27,000 Across Corporate And Personal Returns — Extra-Provincial Registrant, London
Client: An owner registering extra-provincially in a second province · Where: London, Ontario · Engagement: 3 weeks, fixed fee
Combined saving$27,000
ScopeCorporate + personal
Future yearsNo rework needed
The situation — An owner registering extra-provincially in a second province, London, Ontario
Nothing was wrong at an owner registering extra-provincially in a second province in London, Ontario. The filings were on time and accurate. What they were not was planned. A single class of common shares that made income splitting impossible had never been reviewed.
What we did for An owner registering extra-provincially in a second province, London, 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 ran the numbers across both the corporate and personal returns, so the saving was real rather than deferred into someone else's hands.
The result — An owner registering extra-provincially in a second province, London, Ontario
$27,000 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
Case Study 5 · Scaling without breaking
Growth Handled Without A Missed Filing, $133,000 Freed — Federal Registry Filer, Regina
Client: A federal corporation filing its registry annual return · Where: Regina, Saskatchewan · Engagement: 3 weeks, fixed fee
Cash freed$133,000
Compliance failuresNone
ReportingMonthly
The situation — A federal corporation filing its registry annual return, Regina, Saskatchewan
A federal corporation filing its registry annual return in Regina, Saskatchewan was opening in a second province. That meant different filing obligations and a different payroll regime. GST/HST collected for eight months before the RT account was ever opened already sat in the file.
What we did for A federal corporation filing its registry annual return, Regina, Saskatchewan
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 federal corporation filing its registry annual return, Regina, Saskatchewan
Growth was absorbed without a compliance failure. $133,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 6 · CRA review defended
Audit Defence Closed In 10 Weeks, $138,000 Cleared — New Program Registrant, Victoria
Client: A corporation registering its CRA program accounts · Where: Victoria, British Columbia · Engagement: 10 weeks, fixed fee
Proposed tax cleared$138,000
Review duration10 weeks
OutcomeNo change
The situation — A corporation registering its CRA program accounts, Victoria, British Columbia
A corporation registering its CRA program accounts in Victoria, British Columbia was selected for review. A spouse added as a shareholder on the assumption dividends could simply be split between two returns had shown up in the CRA's automated matching. The proposed adjustment on Ontario incorporation came to $138,000.
What we did for A corporation registering its CRA program accounts, Victoria, British Columbia
We separated the corporate registry deadlines from the CRA deadlines on one calendar, with a named person responsible for each. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result — A corporation registering its CRA program accounts, Victoria, British Columbia
The review closed with no change. $138,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
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.
