6 Professional Corporation Tax Return 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 professional corporation tax return work, not a general example.
Case Study 1 · CRA review defended
$30,500 Proposed Adjustment Withdrawn In Full — Import and Distribution Corporation, Ottawa
Client: An import and distribution corporation · Where: Ottawa, Ontario · Engagement: 7 weeks, fixed fee
Adjustment withdrawn$30,500
File closed in7 weeks
Penalties assessedNone
The situation
An import and distribution corporation in Ottawa, Ontario received a proposal letter opening a review of professional corporation tax return. The CRA had identified a small business limit quietly shared across three associated corporations nobody had mapped and proposed an adjustment of $30,500, with 30 days to respond.
What we did
We treated the response as an evidence exercise rather than an argument. We modelled salary against dividends across both the corporation and the shareholder’s personal return, then set the remuneration mix for the year, then indexed every supporting document against the specific line the auditor had questioned.
The result
The proposed adjustment was withdrawn in full — all $30,500 of it. The file closed in 7 weeks with no change to the assessed amounts and no penalty.
Case Study 2 · Objection and relief
$36,500 Of Penalties And Interest Cancelled On Relief — Professional Corporation, Barrie
Client: A professional corporation · Where: Barrie, Ontario · Engagement: 11 weeks, fixed fee
Penalties and interest cancelled$36,500
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation
An assessment of $36,500 landed at a professional corporation in Barrie, Ontario following a desk review. The auditor had not seen the records behind retained earnings building in the operating company with no plan for extracting them.
What we did
We rebuilt the instalment schedule off the current year rather than the prior year, ending the interest accrual, then set out the legislative basis for the position alongside the documents supporting it.
The result
$36,500 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 3 · Scaling without breaking
Growth Handled Without A Missed Filing, $38,500 Freed — Incorporated Consultancy, London
An incorporated consultancy in London, Ontario was opening in a second province — different filing obligations, a different payroll regime, and two corporations under common control filing as if each had its own $500,000 limit already in the file.
What we did
We moved passive holdings into a separate structure so the operating company’s small business limit stopped grinding down 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. $38,500 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 4 · Structure rebuilt
Corporate Structure Rebuilt For $72,000 Of Annual Savings — Incorporated Trades Business, Vancouver
Client: An incorporated trades business · Where: Vancouver, British Columbia · Engagement: 9 weeks, fixed fee
Saving per year$72,000
DocumentationComplete
Transfer basisRollover
The situation
The structure at an incorporated trades business in Vancouver, British Columbia had been set up years earlier for a business that no longer existed, and a balance-due date the owner believed was the same as the filing date had become expensive.
What we did
We mapped the association rules across the group, allocated the business limit deliberately on Schedule 23, and corrected the prior year by adjustment request. The reorganisation used the rollover provisions rather than a taxable transfer, so no tax fell due on the restructuring itself.
The result
$72,000 of annual saving, achieved on a tax-deferred basis. The minute book, elections and valuations are all in the file.
Case Study 5 · Planning that cut the bill
$30,000 Cut From The Annual Tax Bill — Holding Company and Its, Victoria
Client: A holding company and its operating subsidiary · Where: Victoria, British Columbia · Engagement: 8 weeks, fixed fee
First-year saving$30,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation
A holding company and its operating subsidiary in Victoria, British Columbia was compliant but paying more than it needed to. The prior year had been filed correctly and still left passive investment income that had crossed the $50,000 grind threshold unnoticed on the table.
What we did
We modelled the current position against the alternatives before changing anything, then modelled salary against dividends across both the corporation and the shareholder’s personal return, then set the remuneration mix for the year.
The result
The change saved $30,000 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 6 · Backlog brought current
4 Years Filed, $54,000 Removed From The Assessed Balance — Franchise Operator with Three, Surrey
Client: A franchise operator with three locations · Where: Surrey, British Columbia · Engagement: 5 weeks, fixed fee
Years filed4
Assessed balance removed$54,000
CollectionsStopped
The situation
A franchise operator with three locations in Surrey, British Columbia had not filed for 4 years. The CRA had issued arbitrary assessments, and the business was carrying a small business limit quietly shared across three associated corporations nobody had mapped on top of a growing interest balance.
What we did
We started with the oldest year and worked forward so each year's closing balances fed the next. We rebuilt the instalment schedule off the current year rather than the prior year, ending the interest accrual, filing the years in sequence rather than all at once.
The result
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $54,000 of the estimated balance came off, with a payment arrangement covering the rest.
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.
