6 Partnership Payroll 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 partnership payroll services work, not a general example.
Case Study 1 · Planning that cut the bill
$59,000 Cut From The Annual Tax Bill — Husband-And-Wife Retail Partnership, Brampton
A husband-and-wife retail partnership in Brampton, Ontario was compliant but paying more than it needed to. The prior year had been filed correctly and still left a profit split applied in practice that the written agreement did not support on the table.
What we did
We modelled the current position against the alternatives before changing anything, then filed the section 85 election with correct elected amounts and rolled the assets in without a taxable disposition.
The result
The change saved $59,000 in the first year and repeats annually. Nothing about the filings became more aggressive; the position is simply the one the rules already allowed.
Case Study 2 · Missed incentive claimed
$71,000 Credit Claim Filed And Accepted Without Adjustment — Food-Truck Sole Proprietorship, Saskatoon
Client: A food-truck sole proprietorship · Where: Saskatoon, Saskatchewan · Engagement: 7 weeks, fixed fee
Claim value$71,000
AcceptedWithout adjustment
RepeatableAnnually
The situation
A food-truck sole proprietorship in Saskatoon, Saskatchewan assumed the credits did not apply to a business its size. A partnership that crossed the T5013 threshold two years before anyone noticed meant they had applied all along.
What we did
We identified the qualifying activity, built the documentation to support it, and restructured the draw policy so no partner’s adjusted cost base went negative again, and reported the deemed gain correctly for the year it arose.
The result
$71,000 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
Case Study 3 · Structure rebuilt
Holding Structure Added, $44,000 Saved Annually — Freelance Developer, Hamilton
A freelance developer in Hamilton, Ontario was carrying a partnership that crossed the T5013 threshold two years before anyone noticed, and every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did
Working with the client's lawyer, we filed the outstanding T5013 returns with full partner allocations and requested penalty relief on the basis of the first-time nature of the failure and prepared the elections, resolutions and valuations the structure needed to stand up.
The result
The structure now matches the business. Annual saving of $44,000, and the reorganisation itself was tax-neutral.
Case Study 4 · Records and systems rebuilt
14 Months Reconciled And $4,300 Of Input Tax Recovered — Unincorporated Trades Business, Edmonton
Client: An unincorporated trades business · Where: Edmonton, Alberta · Engagement: 7 weeks, fixed fee
Months reconciled14
Input tax recovered$4,300
Close time8 days
The situation
An unincorporated trades business in Edmonton, Alberta was carrying an incorporation completed without the section 85 election, triggering an unnecessary gain. Nothing reconciled, and every filing started with 14 months of cleanup.
What we did
We rebuilt from source rather than correcting on top of the existing file. We rewrote the partnership allocation to match how the practice actually operated, effective for the following fiscal year, then set the routine that keeps it clean.
The result
14 months reconciled to the bank. The close now takes 8 days, and $4,300 of previously unclaimable input tax was recovered in the process.
Case Study 5 · Scaling without breaking
Growth Handled Without A Missed Filing, $58,000 Freed — Three-Partner Medical Clinic, Calgary
Client: A three-partner medical clinic · Where: Calgary, Alberta · Engagement: 4 weeks, fixed fee
Cash freed$58,000
Compliance failuresNone
ReportingMonthly
The situation
A three-partner medical clinic in Calgary, Alberta was opening in a second province — different filing obligations, a different payroll regime, and business income reported entirely on one spouse’s return despite shared operations already in the file.
What we did
We filed the section 85 election with correct elected amounts and rolled the assets in without a taxable disposition 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. $58,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 6 · Sale and succession
$805,000 Sheltered By The Lifetime Capital Gains Exemption — Sole Proprietor Consultant, Guelph
Client: A sole proprietor consultant · Where: Guelph, Ontario · Engagement: 4 weeks, fixed fee
Gain sheltered$805,000
ClosingOn schedule
Share qualificationMet
The situation
A sole proprietor consultant in Guelph, Ontario had an offer on the table and 12 months to close. The shares did not qualify for the capital gains exemption, and passive assets sitting inside the operating company, disqualifying the shares was part of the reason.
What we did
We purified the corporation so the shares met the qualifying tests, then restructured the draw policy so no partner’s adjusted cost base went negative again, and reported the deemed gain correctly for the year it arose well ahead of the closing date.
The result
The sale closed on schedule with $805,000 sheltered by the lifetime capital gains exemption across the shareholders.
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.
