6 Inactive Corporation 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 inactive corporation tax return work, not a general example.
Case Study 1 · Cash and remittance control
Instalments Rebased, $87,000 Of Cash Returned To The Business — Technology CCPC Approaching Its, Victoria
Client: A technology CCPC approaching its first profitable year · Where: Victoria, British Columbia · Engagement: 10 weeks, fixed fee
Cash returned$87,000
Instalment basisCurrent year
ReviewedQuarterly
The situation
A technology CCPC approaching its first profitable year in Victoria, British Columbia was paying instalments calculated on a prior year that no longer reflected the business. Two corporations under common control filing as if each had its own $500,000 limit was tying up $87,000 of cash.
What we did
We rebased the instalments on the current-year estimate rather than the prior-year default, and modelled salary against dividends across both the corporation and the shareholder’s personal return, then set the remuneration mix for the year.
The result
$87,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 2 · Records and systems rebuilt
30 Months Reconciled And $19,000 Of Input Tax Recovered — Corporately-Owned Rental Portfolio, Edmonton
Client: A corporately-owned rental portfolio · Where: Edmonton, Alberta · Engagement: 10 weeks, fixed fee
Months reconciled30
Input tax recovered$19,000
Close time8 days
The situation
A corporately-owned rental portfolio in Edmonton, Alberta was carrying a balance-due date the owner believed was the same as the filing date. Nothing reconciled, and every filing started with 30 months of cleanup.
What we did
We rebuilt from source rather than correcting on top of the existing file. We rebuilt the instalment schedule off the current year rather than the prior year, ending the interest accrual, then set the routine that keeps it clean.
The result
30 months reconciled to the bank. The close now takes 8 days, and $19,000 of previously unclaimable input tax was recovered in the process.
Case Study 3 · Deadline rescue
Filed On Time From A Standing Start, $28,000 Penalty Avoided — Incorporated Consultancy, Kitchener
An incorporated consultancy in Kitchener, Ontario came to us 4 weeks before its filing deadline with passive investment income that had crossed the $50,000 grind threshold unnoticed. A late filing would have triggered a penalty of roughly $28,000 before interest.
What we did
We worked backwards from the deadline. We moved passive holdings into a separate structure so the operating company’s small business limit stopped grinding down, prioritising the items that actually gated the filing and deferring everything that did not.
The result
The return was filed on time and complete. The $28,000 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Case Study 4 · Objection and relief
Notice Of Objection Allowed In Full, $38,000 Reversed — Franchise Operator with Three, Vancouver
Client: A franchise operator with three locations · Where: Vancouver, British Columbia · Engagement: 11 weeks, fixed fee
Amount reversed$38,000
ObjectionAllowed in full
Account balanceNil
The situation
A franchise operator with three locations in Vancouver, British Columbia had been reassessed for $38,000 and had 10 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 mapped the association rules across the group, allocated the business limit deliberately on Schedule 23, and corrected the prior year by adjustment request.
The result
The appeals officer allowed the objection in full. $38,000 was reversed and the account returned to a nil balance.
Case Study 5 · Structure rebuilt
Corporate Structure Rebuilt For $70,000 Of Annual Savings — Second-Generation Family Manufacturer, Brampton
Client: A second-generation family manufacturer · Where: Brampton, Ontario · Engagement: 5 weeks, fixed fee
Saving per year$70,000
DocumentationComplete
Transfer basisRollover
The situation
The structure at a second-generation family manufacturer in Brampton, Ontario had been set up years earlier for a business that no longer existed, and retained earnings building in the operating company with no plan for extracting them had become expensive.
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. The reorganisation used the rollover provisions rather than a taxable transfer, so no tax fell due on the restructuring itself.
The result
$70,000 of annual saving, achieved on a tax-deferred basis. The minute book, elections and valuations are all in the file.
Case Study 6 · Backlog brought current
$107,000 Of Arbitrary Assessments Vacated After 5 Years — Professional Corporation, Toronto
Client: A professional corporation · Where: Toronto, Ontario · Engagement: 11 weeks, fixed fee
Arbitrary tax vacated$107,000
Years brought current5
Account statusCurrent
The situation
5 years of unfiled returns had turned into notional assessments at a professional corporation in Toronto, Ontario, with two corporations under common control filing as if each had its own $500,000 limit underneath. Collections had already started.
What we did
We rebuilt the instalment schedule off the current year rather than the prior year, ending the interest accrual, then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result
All 5 years were accepted as filed. $107,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 5 years.
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.
