6 T5018 Subcontractor Reporting 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 t5018 subcontractor reporting work, not a general example.
Case Study 1 · Backlog brought current
Collections Halted And $122,000 Cut From A 4-Year Backlog — Agri-Tech Company, Lethbridge
Client: An agri-tech company · Where: Lethbridge, Alberta · Engagement: 6 weeks, fixed fee
Balance reduced by$122,000
Backlog cleared4 years
CollectionsHalted
The situation
By the time an agri-tech company in Lethbridge, Alberta called, 4 years were outstanding and the CRA had assessed on estimates. Underneath it sat a provincial credit left unclaimed alongside a successful federal SR&ED claim.
What we did
We reconstructed the records year by year and put contemporaneous tracking in place — project logs tied to time records — so the following year’s claim was defensible by construction. 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 $122,000, and a relief application addressed part of the accumulated interest.
Case Study 2 · Sale and succession
Intergenerational Transfer Completed With $220,000 Deferred — Software Company Building a, Victoria
Client: A software company building a new platform · Where: Victoria, British Columbia · Engagement: 8 weeks, fixed fee
Tax deferred$220,000
TransferCompleted
RecordsReview-ready
The situation
A generational transfer at a software company building a new platform in Victoria, British Columbia had been discussed for years without a plan. Passive assets sitting inside the operating company, disqualifying the shares meant the transfer as contemplated would have been fully taxable.
What we did
We identified the eligible projects, documented the technological uncertainty and systematic investigation for each, and filed a claim that survived review without adjustment, sequencing the steps so each one was complete and documented before the next depended on it.
The result
$220,000 of tax was deferred through the transfer, and the successor generation took over a corporation whose records stood up to review.
Case Study 3 · Missed incentive claimed
Incentive Review Recovered $28,000 Across 6 Open Years — Engineering Firm Solving a, London
Client: An engineering firm solving a technical uncertainty · Where: London, Ontario · Engagement: 8 weeks, fixed fee
Recovered$28,000
Open years claimed6
Ongoing trackingIn place
The situation
An incentive review at an engineering firm solving a technical uncertainty in London, Ontario started from a simple question: what has never been claimed? The answer ran to 6 years, driven by a SR&ED claim prepared eleven months after the fact with no contemporaneous records.
What we did
We layered the applicable provincial credit onto the federal claim in the same filing, documenting eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result
The credits produced $28,000 across the open years, and the tracking now in place means the following year's claim is documented as the work happens rather than reconstructed afterwards.
Case Study 4 · CRA review defended
$55,000 Proposed Adjustment Withdrawn In Full — Game Studio Claiming Digital, Ottawa
Client: A game studio claiming digital media credits · Where: Ottawa, Ontario · Engagement: 4 weeks, fixed fee
Adjustment withdrawn$55,000
File closed in4 weeks
Penalties assessedNone
The situation
A game studio claiming digital media credits in Ottawa, Ontario received a proposal letter opening a review of t5018 subcontractor reporting. The CRA had identified a filing deadline missed by three weeks, extinguishing the entire claim and proposed an adjustment of $55,000, with 30 days to respond.
What we did
We treated the response as an evidence exercise rather than an argument. We confirmed CCPC status and refiled at the enhanced 35% refundable rate, then indexed every supporting document against the specific line the auditor had questioned.
The result
The proposed adjustment was withdrawn in full — all $55,000 of it. The file closed in 4 weeks with no change to the assessed amounts and no penalty.
Case Study 5 · Scaling without breaking
Scaled To 38 Staff With $58,000 Of Working Capital Freed — Industrial Automation Integrator, Toronto
An industrial automation integrator in Toronto, Ontario was growing fast — headcount to 38 in eighteen months — and the back office had not kept up. A SR&ED claim prepared eleven months after the fact with no contemporaneous records was the first thing to break.
What we did
We put contemporaneous tracking in place — project logs tied to time records — so the following year’s claim was defensible by construction, and built the compliance calendar for the size the business was becoming rather than the size it had been.
The result
The business reached 38 staff with no missed remittance and no late filing. $58,000 of working capital was freed in the process.
Case Study 6 · Planning that cut the bill
$57,000 Saved By Correcting What Prior Filings Had Missed — Food Producer Reformulating Its, Windsor
Client: A food producer reformulating its product line · Where: Windsor, Ontario · Engagement: 9 weeks, fixed fee
Saving identified$57,000
RecurringYes
Positions documentedAll
The situation
A food producer reformulating its product line in Windsor, Ontario asked for a second opinion on t5018 subcontractor reporting after three years of rising tax. The review found a provincial credit left unclaimed alongside a successful federal SR&ED claim.
What we did
We built the comparison first — current structure against two alternatives — and then identified the eligible projects, documented the technological uncertainty and systematic investigation for each, and filed a claim that survived review without adjustment.
The result
First-year saving of $57,000, with the same benefit recurring. Every position taken is documented and supported in the file.
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.
