6 Small Business Tax 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 small business tax planning work, not a general example.
Case Study 1 · Backlog brought current
Collections Halted And $82,000 Cut From A 4-Year Backlog — CCPC with Two Shareholders, Toronto
Client: A CCPC with two shareholders · Where: Toronto, Ontario · Engagement: 3 weeks, fixed fee
Balance reduced by$82,000
Backlog cleared4 years
CollectionsHalted
The situation
By the time a CCPC with two shareholders in Toronto, Ontario called, 4 years were outstanding and the CRA had assessed on estimates. Underneath it sat passive investment income that had crossed the $50,000 grind threshold unnoticed.
What we did
We reconstructed the records year by year and rebuilt the instalment schedule off the current year rather than the prior year, ending the interest accrual. Each filing replaced an arbitrary assessment with a real one.
The result
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $82,000, and a relief application addressed part of the accumulated interest.
Case Study 2 · CRA review defended
$43,000 Proposed Adjustment Withdrawn In Full — Franchise Operator with Three, Barrie
Client: A franchise operator with three locations · Where: Barrie, Ontario · Engagement: 11 weeks, fixed fee
Adjustment withdrawn$43,000
File closed in11 weeks
Penalties assessedNone
The situation
A franchise operator with three locations in Barrie, Ontario received a proposal letter opening a review of small business tax planning. The CRA had identified retained earnings building in the operating company with no plan for extracting them and proposed an adjustment of $43,000, 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The proposed adjustment was withdrawn in full — all $43,000 of it. The file closed in 11 weeks with no change to the assessed amounts and no penalty.
Client: An incorporated trades business · Where: Red Deer, Alberta · Engagement: 9 weeks, fixed fee
Overpayment refunded$123,000
Late remittances sinceZero
ScheduleAutomated
The situation
Remittances at an incorporated trades business in Red Deer, Alberta were consistently late by a few days, which was enough to trigger penalties every quarter. Behind it sat a balance-due date the owner believed was the same as the filing date.
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, then moved the remittance dates into a scheduled process rather than a monthly decision.
The result
Penalties stopped from the following remittance onwards, and $123,000 of overpaid instalments was refunded.
Case Study 4 · Objection and relief
Notice Of Objection Allowed In Full, $139,000 Reversed — Professional Corporation, Burnaby
Client: A professional corporation · Where: Burnaby, British Columbia · Engagement: 11 weeks, fixed fee
Amount reversed$139,000
ObjectionAllowed in full
Account balanceNil
The situation
A professional corporation in Burnaby, British Columbia had been reassessed for $139,000 and had 16 days left on the objection deadline. The reassessment rested on a small business limit quietly shared across three associated corporations nobody had mapped.
What we did
We filed the objection inside the deadline with a complete submission rather than a placeholder, and moved passive holdings into a separate structure so the operating company’s small business limit stopped grinding down.
The result
The appeals officer allowed the objection in full. $139,000 was reversed and the account returned to a nil balance.
Case Study 5 · Sale and succession
$770,000 Sheltered By The Lifetime Capital Gains Exemption — Corporately-Owned Rental Portfolio, Surrey
Client: A corporately-owned rental portfolio · Where: Surrey, British Columbia · Engagement: 5 weeks, fixed fee
Gain sheltered$770,000
ClosingOn schedule
Share qualificationMet
The situation
A corporately-owned rental portfolio in Surrey, British Columbia had an offer on the table and 14 months to close. The shares did not qualify for the capital gains exemption, and no valuation on file to support the price the parties had agreed was part of the reason.
What we did
We purified the corporation so the shares met the qualifying tests, then rebuilt the instalment schedule off the current year rather than the prior year, ending the interest accrual well ahead of the closing date.
The result
The sale closed on schedule with $770,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 6 · Scaling without breaking
Scaled To 32 Staff With $61,000 Of Working Capital Freed — Holding Company and Its, Edmonton
Client: A holding company and its operating subsidiary · Where: Edmonton, Alberta · Engagement: 7 weeks, fixed fee
Headcount reached32
Working capital freed$61,000
Missed deadlinesZero
The situation
A holding company and its operating subsidiary in Edmonton, Alberta was growing fast — headcount to 32 in eighteen months — and the back office had not kept up. Passive investment income that had crossed the $50,000 grind threshold unnoticed was the first thing to break.
What we did
We modelled salary against dividends across both the corporation and the shareholder’s personal return, then set the remuneration mix for the year, and built the compliance calendar for the size the business was becoming rather than the size it had been.
The result
The business reached 32 staff with no missed remittance and no late filing. $61,000 of working capital was freed in the process.
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.
