6 worked Provincial Tax Credit Claims 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 tax credit claims work, not a specific client's file.
Case Study 1 · Deadline rescue
Filed On Time From A Standing Start, $55,000 Penalty Avoided — Engineering Development Firm, Calgary
Client: An engineering firm solving a technical uncertainty · Where: Calgary, Alberta · Engagement: 5 weeks, fixed fee
Penalty avoided$55,000
Turnaround5 weeks
FiledOn time
The situation — An engineering firm solving a technical uncertainty, Calgary, Alberta
An engineering firm solving a technical uncertainty in Calgary, Alberta came to us 5 weeks before its filing deadline with technical narratives written by the finance team with no input from the people who ran the experiments. A late filing would have triggered a penalty of roughly $55,000 before interest.
What we did for An engineering firm solving a technical uncertainty, Calgary, Alberta
We worked backwards from the deadline. We separated eligible experimental development time from routine production work in the time records, so the claimed portion was traceable to a person and a date, prioritising the items that actually gated the filing and deferring everything that did not.
The result — An engineering firm solving a technical uncertainty, Calgary, Alberta
The return was filed on time and complete. The $55,000 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Case Study 2 · Objection and relief
Notice Of Objection Allowed In Full, $130,000 Reversed — Medical Device Developer, Guelph
Client: A medical device developer · Where: Guelph, Ontario · Engagement: 5 weeks, fixed fee
Amount reversed$130,000
ObjectionAllowed in full
Account balanceNil
The situation — A medical device developer, Guelph, Ontario
A medical device developer in Guelph, Ontario had been reassessed for $130,000 and had 24 days left on the objection deadline. The reassessment rested on a SR&ED claim prepared eleven months after the fact with no contemporaneous records.
What we did for A medical device developer, Guelph, Ontario
We filed the objection inside the deadline with a complete submission rather than a placeholder, and layered the applicable provincial credit onto the federal claim in the same filing.
The result — A medical device developer, Guelph, Ontario
The appeals officer allowed the objection in full. $130,000 was reversed and the account returned to a nil balance.
Case Study 3 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $65,000 Saved Each Year — Agri-Tech Company, Moncton
Client: An agri-tech company · Where: Moncton, New Brunswick · Engagement: 8 weeks, fixed fee
Annual saving$65,000
Tax on reorganisationDeferred
Elections filedOn time
The situation — An agri-tech company, Moncton, New Brunswick
An agri-tech company in Moncton, New Brunswick had outgrown the structure it started with. A provincial credit left unclaimed alongside a successful federal SR&ED claim was the immediate problem; the longer-term one was that the structure blocked the next step.
What we did for An agri-tech company, Moncton, New Brunswick
We mapped the current structure, modelled the target, and identified the eligible projects, documented the technological uncertainty and systematic investigation for each, and filed a claim that survived review without adjustment — with the tax-deferred elections filed on time and the supporting valuations documented.
The result — An agri-tech company, Moncton, New Brunswick
The reorganisation completed without triggering tax, and the new structure saves approximately $65,000 a year while removing the exposure the old one carried.
Case Study 4 · Backlog brought current
$95,000 Of Arbitrary Assessments Vacated After 5 Years — Automation Integrator, Red Deer
Client: An industrial automation integrator · Where: Red Deer, Alberta · Engagement: 8 weeks, fixed fee
Arbitrary tax vacated$95,000
Years brought current5
Account statusCurrent
The situation — An industrial automation integrator, Red Deer, Alberta
5 years of unfiled returns had turned into notional assessments at an industrial automation integrator in Red Deer, Alberta, with a provincial grant for the same project left in place while the federal claim was made on the gross spend underneath. Collections had already started.
What we did for An industrial automation integrator, Red Deer, Alberta
We netted the government assistance against the qualified expenditure pool, so the claim matched what would survive a review, then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result — An industrial automation integrator, Red Deer, Alberta
All 5 years were accepted as filed. $95,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 5 years.
Case Study 5 · Sale and succession
Share Sale Restructured, $235,000 Less Tax On Closing — Equipment-Investing Manufacturer, Brampton
Client: A manufacturer investing in new production equipment · Where: Brampton, Ontario · Engagement: 6 weeks, fixed fee
Tax saved on closing$235,000
PriceAs agreed
Post-closing adjustmentsNone
The situation — A manufacturer investing in new production equipment, Brampton, Ontario
A manufacturer investing in new production equipment in Brampton, Ontario was preparing to sell. Due diligence surfaced a minute book with no resolutions behind a decade of dividends, which would have reduced the price or killed the deal outright.
What we did for A manufacturer investing in new production equipment, Brampton, Ontario
We cleaned up the historical file, put contemporaneous tracking in place — project logs tied to time records — so the following year’s claim was defensible by construction, and prepared the due-diligence package the buyer's advisers actually asked for.
The result — A manufacturer investing in new production equipment, Brampton, Ontario
The deal closed at the agreed price. $235,000 of tax was saved against the structure originally proposed, with no post-closing adjustment.
Case Study 6 · Missed incentive claimed
$120,000 In Credits Claimed That Prior Filings Had Missed — Provincial Credit Claimant, Saskatoon
Client: A corporation stacking a provincial credit on a federal claim · Where: Saskatoon, Saskatchewan · Engagement: 10 weeks, fixed fee
Credits claimed$120,000
Years adjusted5
Review outcomeNo adjustment
The situation — A corporation stacking a provincial credit on a federal claim, Saskatoon, Saskatchewan
A corporation stacking a provincial credit on a federal claim in Saskatoon, Saskatchewan had been filing for 5 years without ever claiming the incentives its activity qualified for. Behind that sat a claim filed at the 15% non-refundable rate when CCPC status supported 35% refundable.
What we did for A corporation stacking a provincial credit on a federal claim, Saskatoon, Saskatchewan
We tested each activity against the eligibility criteria rather than the description on the invoice, then filed the complete project list on the original claim rather than holding projects back for an amendment that could not be made.
The result — A corporation stacking a provincial credit on a federal claim, Saskatoon, Saskatchewan
$120,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
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.
