6 worked T2 Corporation Income Tax Return 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 t2 corporation income tax return work, not a specific client's file.
Case Study 1 · Backlog brought current
Collections Halted And $121,000 Cut From A 7-Year Backlog — Incorporated Trades Business, Guelph
Client: An incorporated trades business · Where: Guelph, Ontario · Engagement: 9 weeks, fixed fee
Balance reduced by$121,000
Backlog cleared7 years
CollectionsHalted
The situation — An incorporated trades business, Guelph, Ontario
By the time an incorporated trades business in Guelph, Ontario called, 7 years were outstanding and the CRA had assessed on estimates. Underneath it sat retained earnings building in the operating company with no plan for extracting them.
What we did for An incorporated trades business, Guelph, Ontario
We reconstructed the records year by year and carried the non-capital loss back against the two profitable years and recovered tax already paid instead of holding a carry-forward balance. Each filing replaced an arbitrary assessment with a real one.
The result — An incorporated trades business, Guelph, Ontario
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $121,000, and a relief application addressed part of the accumulated interest.
Case Study 2 · Planning that cut the bill
Remuneration Review Saved $23,500 Across Corporate And Personal Returns — Incorporated Consultancy, Ottawa
The situation — An incorporated consultancy, Ottawa, Ontario
Nothing was wrong at an incorporated consultancy in Ottawa, Ontario — the filings were on time and accurate. What they were not was planned. Two corporations under common control filing as if each had its own $500,000 limit had never been reviewed.
What we did for An incorporated consultancy, Ottawa, Ontario
We documented safe income before the inter-corporate dividend was paid, so subsection 55(2) had no room to recharacterise it as a gain, and ran the numbers across both the corporate and personal returns so the saving was real rather than deferred into someone else's hands.
The result — An incorporated consultancy, Ottawa, Ontario
$23,500 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
Case Study 3 · Structure rebuilt
Corporate Structure Rebuilt For $68,000 Of Annual Savings — Professional Corporation, Burnaby
Client: A professional corporation · Where: Burnaby, British Columbia · Engagement: 8 weeks, fixed fee
Saving per year$68,000
DocumentationComplete
Transfer basisRollover
The situation — A professional corporation, Burnaby, British Columbia
The structure at a professional corporation in Burnaby, British Columbia had been set up years earlier for a business that no longer existed, and a balance-due date the owner believed was the same as the filing date had become expensive.
What we did for A professional corporation, Burnaby, British Columbia
We mapped the association rules across the group, allocated the business limit deliberately on Schedule 23, and corrected the prior year by adjustment request. The reorganisation used the rollover provisions rather than a taxable transfer, so no tax fell due on the restructuring itself.
The result — A professional corporation, Burnaby, British Columbia
$68,000 of annual saving, achieved on a tax-deferred basis. The minute book, elections and valuations are all in the file.
Case Study 4 · Scaling without breaking
Growth Handled Without A Missed Filing, $32,000 Freed — Non-Calendar Year-End Corporation, Moncton
Client: A corporation with a non-calendar fiscal year-end · Where: Moncton, New Brunswick · Engagement: 9 weeks, fixed fee
Cash freed$32,000
Compliance failuresNone
ReportingMonthly
The situation — A corporation with a non-calendar fiscal year-end, Moncton, New Brunswick
A corporation with a non-calendar fiscal year-end in Moncton, New Brunswick was opening in a second province — different filing obligations, a different payroll regime, and passive investment income that had crossed the $50,000 grind threshold unnoticed already in the file.
What we did for A corporation with a non-calendar fiscal year-end, Moncton, New Brunswick
We rebuilt the instalment schedule off the current year rather than the prior year, ending the interest accrual and put monthly reporting in place so the owner could see the cash effect of growth while there was still time to act on it.
The result — A corporation with a non-calendar fiscal year-end, Moncton, New Brunswick
Growth was absorbed without a compliance failure. $32,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 5 · Objection and relief
Desk-Review Assessment Of $52,000 Vacated — Associated Corporation Pair, Vancouver
Client: A corporation associated with a spouse-owned company · Where: Vancouver, British Columbia · Engagement: 7 weeks, fixed fee
Assessment vacated$52,000
Supporting recordsNow on file
AccountCleared
The situation — A corporation associated with a spouse-owned company, Vancouver, British Columbia
A corporation associated with a spouse-owned company in Vancouver, British Columbia was carrying $52,000 of penalties and interest arising from a small business limit quietly shared across three associated corporations nobody had mapped, much of it accumulated during a period the CRA itself had delayed.
What we did for A corporation associated with a spouse-owned company, Vancouver, British Columbia
We reconstructed the capital dividend account from the underlying transactions and filed the subsection 83(2) election before the next distribution left the company and framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result — A corporation associated with a spouse-owned company, Vancouver, British Columbia
The assessment was vacated. $52,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Client: A technology CCPC approaching its first profitable year · Where: Halifax, Nova Scotia · Engagement: 10 weeks, fixed fee
Proposed tax cleared$137,000
Review duration10 weeks
OutcomeNo change
The situation — A technology CCPC approaching its first profitable year, Halifax, Nova Scotia
A technology CCPC approaching its first profitable year in Halifax, Nova Scotia was selected for review after dividends moved up to a holding company year after year with no safe-income support on file showed up in the CRA's automated matching. The proposed adjustment on t2 corporation income tax return came to $137,000.
What we did for A technology CCPC approaching its first profitable year, Halifax, Nova Scotia
We reviewed each capital cost allowance pool and set the claim at the level that kept the small business deduction fully used rather than wasted. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result — A technology CCPC approaching its first profitable year, Halifax, Nova Scotia
The review closed with no change. $137,000 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, 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.
