6 T2 Corporation Income Tax Return 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 t2 corporation income tax return work, not a general example.
Case Study 1 · Backlog brought current
Collections Halted And $121,000 Cut From A 7-Year Backlog — Professional Corporation, Guelph
Client: A professional corporation · Where: Guelph, Ontario · Engagement: 9 weeks, fixed fee
Balance reduced by$121,000
Backlog cleared7 years
CollectionsHalted
The situation
By the time a professional corporation in Guelph, Ontario called, 7 years were outstanding and the CRA had assessed on estimates. Underneath it sat two corporations under common control filing as if each had its own $500,000 limit.
What we did
We reconstructed the records year by year and mapped the association rules across the group, allocated the business limit deliberately on Schedule 23, and corrected the prior year by adjustment request. 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 $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 — Franchise Operator with Three, Ottawa
Client: A franchise operator with three locations · Where: Ottawa, Ontario · Engagement: 11 weeks, fixed fee
Combined saving$23,500
ScopeCorporate + personal
Future yearsNo rework needed
The situation
Nothing was wrong at a franchise operator with three locations in Ottawa, Ontario — the filings were on time and accurate. What they were not was planned. Retained earnings building in the operating company with no plan for extracting them had never been reviewed.
What we did
We rebuilt the instalment schedule off the current year rather than the prior year, ending the interest accrual, 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
$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 — Corporately-Owned Rental Portfolio, Burnaby
Client: A corporately-owned rental portfolio · Where: Burnaby, British Columbia · Engagement: 8 weeks, fixed fee
Saving per year$68,000
DocumentationComplete
Transfer basisRollover
The situation
The structure at a corporately-owned rental portfolio in Burnaby, British Columbia had been set up years earlier for a business that no longer existed, and a small business limit quietly shared across three associated corporations nobody had mapped had become expensive.
What we did
We moved passive holdings into a separate structure so the operating company’s small business limit stopped grinding down. The reorganisation used the rollover provisions rather than a taxable transfer, so no tax fell due on the restructuring itself.
The result
$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 — Incorporated Trades Business, Moncton
Client: An incorporated trades business · Where: Moncton, New Brunswick · Engagement: 9 weeks, fixed fee
Cash freed$32,000
Compliance failuresNone
ReportingMonthly
The situation
An incorporated trades business 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
We modelled salary against dividends across both the corporation and the shareholder’s personal return, then set the remuneration mix for the year 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
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 — CCPC with Two Shareholders, Vancouver
Client: A CCPC with two shareholders · Where: Vancouver, British Columbia · Engagement: 7 weeks, fixed fee
Assessment vacated$52,000
Supporting recordsNow on file
AccountCleared
The situation
A CCPC with two shareholders in Vancouver, British Columbia was carrying $52,000 of penalties and interest arising from a balance-due date the owner believed was the same as the filing date, much of it accumulated during a period the CRA itself had delayed.
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 and framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result
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.
Case Study 6 · CRA review defended
Audit Defence Closed In 10 Weeks, $137,000 Cleared — Second-Generation Family Manufacturer, Halifax
Client: A second-generation family manufacturer · Where: Halifax, Nova Scotia · Engagement: 10 weeks, fixed fee
Proposed tax cleared$137,000
Review duration10 weeks
OutcomeNo change
The situation
A second-generation family manufacturer in Halifax, Nova Scotia was selected for review after two corporations under common control filing as if each had its own $500,000 limit showed up in the CRA's automated matching. The proposed adjustment on t2 corporation income tax return came to $137,000.
What we did
We rebuilt the instalment schedule off the current year rather than the prior year, ending the interest accrual. 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. $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, 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.
