6 Shareholder Compensation Planning 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 shareholder compensation planning work, not a general example.
Case Study 1 · Deadline rescue
6-Week Turnaround Beat The Deadline And Saved $106,000 — Franchise Operator with Three, Surrey
Client: A franchise operator with three locations · Where: Surrey, British Columbia · Engagement: 6 weeks, fixed fee
Late-filing penalty avoided$106,000
Filed with20 days to spare
Next yearPapers ready
The situation
With the deadline for shareholder compensation planning weeks away, a franchise operator with three locations in Surrey, British Columbia was carrying a small business limit quietly shared across three associated corporations nobody had mapped. The exposure if the date slipped was around $106,000.
What we did
We rebuilt the instalment schedule off the current year rather than the prior year, ending the interest accrual. The filing went in complete rather than provisional, so there was no amended return to follow.
The result
Filed with 20 days to spare. $106,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 2 · Records and systems rebuilt
25 Months Reconciled And $3,300 Of Input Tax Recovered — CCPC with Two Shareholders, Lethbridge
Client: A CCPC with two shareholders · Where: Lethbridge, Alberta · Engagement: 8 weeks, fixed fee
Months reconciled25
Input tax recovered$3,300
Close time5 days
The situation
A CCPC with two shareholders in Lethbridge, Alberta was carrying two corporations under common control filing as if each had its own $500,000 limit. Nothing reconciled, and every filing started with 25 months of cleanup.
What we did
We rebuilt from source rather than correcting on top of the existing file. We moved passive holdings into a separate structure so the operating company’s small business limit stopped grinding down, then set the routine that keeps it clean.
The result
25 months reconciled to the bank. The close now takes 5 days, and $3,300 of previously unclaimable input tax was recovered in the process.
Case Study 3 · Cash and remittance control
Instalments Rebased, $63,000 Of Cash Returned To The Business — Corporately-Owned Rental Portfolio, Regina
A corporately-owned rental portfolio in Regina, Saskatchewan was paying instalments calculated on a prior year that no longer reflected the business. Passive investment income that had crossed the $50,000 grind threshold unnoticed was tying up $63,000 of cash.
What we did
We rebased the instalments on the current-year estimate rather than the prior-year default, and mapped the association rules across the group, allocated the business limit deliberately on Schedule 23, and corrected the prior year by adjustment request.
The result
$63,000 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
$45,000 Cut From The Annual Tax Bill — Professional Corporation, Ottawa
Client: A professional corporation · Where: Ottawa, Ontario · Engagement: 7 weeks, fixed fee
First-year saving$45,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation
A professional corporation in Ottawa, Ontario was compliant but paying more than it needed to. The prior year had been filed correctly and still left retained earnings building in the operating company with no plan for extracting them 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 $45,000 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 5 · Scaling without breaking
Second-Province Expansion Handled, $139,000 Of Cash Released — Incorporated Trades Business, Barrie
Client: An incorporated trades business · Where: Barrie, Ontario · Engagement: 6 weeks, fixed fee
Cash released$139,000
New registrationsComplete on day one
Compliance gapsNone
The situation
Revenue at an incorporated trades business in Barrie, Ontario was up sharply and cash was tighter than ever. Underneath it sat a balance-due date the owner believed was the same as the filing date.
What we did
We rebuilt the instalment schedule off the current year rather than the prior year, ending the interest accrual. Every new obligation — registration, remittance frequency, provincial filing — was set up before it was triggered, not after.
The result
$139,000 of cash was released from the working capital cycle, and the expansion completed with every registration and filing obligation covered from day one.
Case Study 6 · CRA review defended
Audit Defence Closed In 7 Weeks, $139,000 Cleared — Incorporated Consultancy, London
An incorporated consultancy in London, Ontario was selected for review after a small business limit quietly shared across three associated corporations nobody had mapped showed up in the CRA's automated matching. The proposed adjustment on shareholder compensation planning came to $139,000.
What we did
We moved passive holdings into a separate structure so the operating company’s small business limit stopped grinding down. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result
The review closed with no change. $139,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
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.
