6 worked Provincial Incorporation Services 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 provincial incorporation services work, not a specific client's file.
Case Study 1 · Planning that cut the bill
$15,000 Saved By Correcting What Prior Filings Had Missed — Family Business Adding Shares, Toronto
Client: A family business adding a second class of shares · Where: Toronto, Ontario · Engagement: 4 weeks, fixed fee
Saving identified$15,000
RecurringYes
Positions documentedAll
The situation — A family business adding a second class of shares, Toronto, Ontario
A family business adding a second class of shares in Toronto, Ontario asked for a second opinion on provincial incorporation services after three years of rising tax. The review found a register of individuals with significant control that had never been opened, let alone updated.
What we did for A family business adding a second class of shares, Toronto, Ontario
We built the comparison first — current structure against two alternatives — and then filed the change of registered office and the director changes, so registry correspondence reached someone who read it.
The result — A family business adding a second class of shares, Toronto, Ontario
First-year saving of $15,000, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 2 · Objection and relief
Notice Of Objection Allowed In Full, $54,000 Reversed — Incorporating Contractor, Red Deer
Client: A contractor incorporating for liability reasons · Where: Red Deer, Alberta · Engagement: 7 weeks, fixed fee
Amount reversed$54,000
ObjectionAllowed in full
Account balanceNil
The situation — A contractor incorporating for liability reasons, Red Deer, Alberta
A contractor incorporating for liability reasons in Red Deer, Alberta had been reassessed for $54,000 and had 22 days left on the objection deadline. The reassessment rested on a single class of common shares that made income splitting impossible.
What we did for A contractor incorporating for liability reasons, Red Deer, Alberta
We filed the objection inside the deadline with a complete submission rather than a placeholder, and opened the register of individuals with significant control and put its review on the same annual cycle as the corporate annual return.
The result — A contractor incorporating for liability reasons, Red Deer, Alberta
The appeals officer allowed the objection in full. $54,000 was reversed and the account returned to a nil balance.
Case Study 3 · Missed incentive claimed
$110,000 In Credits Claimed That Prior Filings Had Missed — Newly Formed Corporation, Surrey
Client: A corporation choosing its first fiscal year-end · Where: Surrey, British Columbia · Engagement: 4 weeks, fixed fee
Credits claimed$110,000
Years adjusted3
Review outcomeNo adjustment
The situation — A corporation choosing its first fiscal year-end, Surrey, British Columbia
A corporation choosing its first fiscal year-end in Surrey, British Columbia had been filing for 3 years without ever claiming the incentives its activity qualified for. Behind that sat a register of individuals with significant control that had never been opened, let alone updated.
What we did for A corporation choosing its first fiscal year-end, Surrey, British Columbia
We tested each activity against the eligibility criteria rather than the description on the invoice, then tested each intended dividend recipient against the excluded-amount tests before any dividend was declared, and recorded which test was being relied on.
The result — A corporation choosing its first fiscal year-end, Surrey, British Columbia
$110,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 4 · Cash and remittance control
Instalments Rebased, $14,000 Of Cash Returned To The Business — Federal Registry Filer, Calgary
Client: A federal corporation filing its registry annual return · Where: Calgary, Alberta · Engagement: 8 weeks, fixed fee
Cash returned$14,000
Instalment basisCurrent year
ReviewedQuarterly
The situation — A federal corporation filing its registry annual return, Calgary, Alberta
A federal corporation filing its registry annual return in Calgary, Alberta was paying instalments calculated on a prior year that no longer reflected the business. A spouse added as a shareholder on the assumption dividends could simply be split between two returns was tying up $14,000 of cash.
What we did for A federal corporation filing its registry annual return, Calgary, Alberta
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 — A federal corporation filing its registry annual return, Calgary, Alberta
$14,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 5 · Structure rebuilt
Corporate Structure Rebuilt For $51,000 Of Annual Savings — Newly Incorporating Consultant, Victoria
Client: A consultant incorporating after two years of self-employment · Where: Victoria, British Columbia · Engagement: 8 weeks, fixed fee
Saving per year$51,000
DocumentationComplete
Transfer basisRollover
The situation — A consultant incorporating after two years of self-employment, Victoria, British Columbia
The structure at a consultant incorporating after two years of self-employment in Victoria, British Columbia had been set up years earlier for a business that no longer existed, and dividends paid for three years with no directors’ resolutions behind them had become expensive.
What we did for A consultant incorporating after two years of self-employment, Victoria, British Columbia
We reconstructed the minute book with resolutions for each historical dividend and share transaction. The reorganisation used the rollover provisions rather than a taxable transfer, so no tax fell due on the restructuring itself.
The result — A consultant incorporating after two years of self-employment, Victoria, British Columbia
$51,000 of annual saving, achieved on a tax-deferred basis. The minute book, elections and valuations are all in the file.
Case Study 6 · CRA review defended
$24,000 Proposed Adjustment Withdrawn In Full — Holding Structure Founder, Halifax
Client: A founder setting up a holding structure · Where: Halifax, Nova Scotia · Engagement: 11 weeks, fixed fee
Adjustment withdrawn$24,000
File closed in11 weeks
Penalties assessedNone
The situation — A founder setting up a holding structure, Halifax, Nova Scotia
A founder setting up a holding structure in Halifax, Nova Scotia received a proposal letter opening a review of provincial incorporation services. The CRA had identified a registered office address left unchanged through two moves, so registry notices went to an empty unit and proposed an adjustment of $24,000, with 30 days to respond.
What we did for A founder setting up a holding structure, Halifax, Nova Scotia
We treated the response as an evidence exercise rather than an argument. 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 indexed every supporting document against the specific line the auditor had questioned.
The result — A founder setting up a holding structure, Halifax, Nova Scotia
The proposed adjustment was withdrawn in full — all $24,000 of it. The file closed in 11 weeks with no change to the assessed amounts and no penalty.
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.
