6 worked Shareholder Information Reporting 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 shareholder information reporting work, not a specific client's file.
Client: A technology CCPC approaching its first profitable year · Where: Mississauga, Ontario · Engagement: 11 weeks, fixed fee
Overpayment refunded$22,500
Late remittances sinceZero
ScheduleAutomated
The situation — A technology CCPC approaching its first profitable year, Mississauga, Ontario
Remittances at a technology CCPC approaching its first profitable year in Mississauga, Ontario were consistently late by a few days, which was enough to trigger penalties every quarter. Behind it sat passive investment income that had crossed the $50,000 grind threshold unnoticed.
What we did for A technology CCPC approaching its first profitable year, Mississauga, Ontario
We moved passive holdings into a separate structure so the operating company’s small business limit stopped grinding down, then moved the remittance dates into a scheduled process rather than a monthly decision.
The result — A technology CCPC approaching its first profitable year, Mississauga, Ontario
Penalties stopped from the following remittance onwards, and $22,500 of overpaid instalments was refunded.
Case Study 2 · Sale and succession
Intergenerational Transfer Completed With $720,000 Deferred — Second-Generation Manufacturer, Moncton
Client: A second-generation family manufacturer · Where: Moncton, New Brunswick · Engagement: 9 weeks, fixed fee
Tax deferred$720,000
TransferCompleted
RecordsReview-ready
The situation — A second-generation family manufacturer, Moncton, New Brunswick
A generational transfer at a second-generation family manufacturer in Moncton, New Brunswick had been discussed for years without a plan. A single shareholder holding every share, with no room to multiply the exemption meant the transfer as contemplated would have been fully taxable.
What we did for A second-generation family manufacturer, Moncton, New Brunswick
We rebuilt the instalment schedule off the current year rather than the prior year, ending the interest accrual, sequencing the steps so each one was complete and documented before the next depended on it.
The result — A second-generation family manufacturer, Moncton, New Brunswick
$720,000 of tax was deferred through the transfer, and the successor generation took over a corporation whose records stood up to review.
Case Study 3 · Records and systems rebuilt
Month-End Close Cut From 12 Weeks To 4 Days — Non-Calendar Year-End Corporation, London
Client: A corporation with a non-calendar fiscal year-end · Where: London, Ontario · Engagement: 6 weeks, fixed fee
Close time before12 weeks
Close time after4 days
Year-endReview, not rebuild
The situation — A corporation with a non-calendar fiscal year-end, London, Ontario
The accounting file at a corporation with a non-calendar fiscal year-end in London, Ontario was built on a loss year carried forward by default when carrying it back would have produced a refund cheque. The year-end had taken 12 weeks each of the last three years.
What we did for A corporation with a non-calendar fiscal year-end, London, Ontario
We modelled salary against dividends across both the corporation and the shareholder’s personal return, then set the remuneration mix for the year and moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result — A corporation with a non-calendar fiscal year-end, London, Ontario
The file reconciles. Month-end closes in 4 days instead of 12 weeks, and the year-end is a review rather than a reconstruction.
Case Study 4 · Missed incentive claimed
$84,000 In Credits Claimed That Prior Filings Had Missed — Import and Distribution Corporation, Edmonton
Client: An import and distribution corporation · Where: Edmonton, Alberta · Engagement: 10 weeks, fixed fee
Credits claimed$84,000
Years adjusted4
Review outcomeNo adjustment
The situation — An import and distribution corporation, Edmonton, Alberta
An import and distribution corporation in Edmonton, Alberta had been filing for 4 years without ever claiming the incentives its activity qualified for. Behind that sat a distribution treated as tax-free capital dividend with no election ever filed.
What we did for An import and distribution corporation, Edmonton, Alberta
We tested each activity against the eligibility criteria rather than the description on the invoice, then carried the non-capital loss back against the two profitable years and recovered tax already paid instead of holding a carry-forward balance.
The result — An import and distribution corporation, Edmonton, Alberta
$84,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 5 · Deadline rescue
Filed On Time From A Standing Start, $127,000 Penalty Avoided — Incorporated Consultancy, Barrie
The situation — An incorporated consultancy, Barrie, Ontario
An incorporated consultancy in Barrie, Ontario came to us 5 weeks before its filing deadline with a balance-due date the owner believed was the same as the filing date. A late filing would have triggered a penalty of roughly $127,000 before interest.
What we did for An incorporated consultancy, Barrie, Ontario
We worked backwards from the deadline. We reconstructed the capital dividend account from the underlying transactions and filed the subsection 83(2) election before the next distribution left the company, prioritising the items that actually gated the filing and deferring everything that did not.
The result — An incorporated consultancy, Barrie, Ontario
The return was filed on time and complete. The $127,000 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Case Study 6 · CRA review defended
$98,000 Proposed Adjustment Withdrawn In Full — Holding and Operating Companies, Burnaby
Client: A holding company and its operating subsidiary · Where: Burnaby, British Columbia · Engagement: 11 weeks, fixed fee
Adjustment withdrawn$98,000
File closed in11 weeks
Penalties assessedNone
The situation — A holding company and its operating subsidiary, Burnaby, British Columbia
A holding company and its operating subsidiary in Burnaby, British Columbia received a proposal letter opening a review of shareholder information reporting. The CRA had identified a small business limit quietly shared across three associated corporations nobody had mapped and proposed an adjustment of $98,000, with 30 days to respond.
What we did for A holding company and its operating subsidiary, Burnaby, British Columbia
We treated the response as an evidence exercise rather than an argument. We documented safe income before the inter-corporate dividend was paid, so subsection 55(2) had no room to recharacterise it as a gain, then indexed every supporting document against the specific line the auditor had questioned.
The result — A holding company and its operating subsidiary, Burnaby, British Columbia
The proposed adjustment was withdrawn in full — all $98,000 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.
