6 worked Personal Tax Filing 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 personal tax filing work, not a specific client's file.
Case Study 1 · Scaling without breaking
Growth Handled Without A Missed Filing, $129,000 Freed — Multi-Source Retiree, Vancouver
Client: A retiree drawing from three sources · Where: Vancouver, British Columbia · Engagement: 3 weeks, fixed fee
Cash freed$129,000
Compliance failuresNone
ReportingMonthly
The situation — A retiree drawing from three sources, Vancouver, British Columbia
A retiree drawing from three sources in Vancouver, British Columbia was opening in a second province. That meant different filing obligations and a different payroll regime. Three years of returns filed without the slips that had been mailed to an old address already sat in the file.
What we did for A retiree drawing from three sources, Vancouver, British Columbia
We pulled the full slip history from the CRA record, refiled the affected years by adjustment request, and recovered the credits that had been missed. We then put monthly reporting in place. That let the owner see the cash effect of growth while there was still time to act on it.
The result — A retiree drawing from three sources, Vancouver, British Columbia
Growth was absorbed without a compliance failure. $129,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 2 · Missed incentive claimed
$99,000 In Credits Claimed That Prior Filings Had Missed — Two-Income Landlord Household, Moncton
Client: A two-income household with rental property · Where: Moncton, New Brunswick · Engagement: 10 weeks, fixed fee
Credits claimed$99,000
Years adjusted6
Review outcomeNo adjustment
The situation — A two-income household with rental property, Moncton, New Brunswick
A two-income household with rental property in Moncton, New Brunswick had been filing for 6 years. In that time, the incentives its activity qualified for were never claimed. Behind that sat RRSP room accumulated over eight years and never used in a high-income year.
What we did for A two-income household with rental property, Moncton, New Brunswick
We tested each activity against the eligibility criteria rather than the description on the invoice. Then we pooled the carried-forward donation receipts onto the higher-income spouse’s return so the whole claim sat above the low-rate first tier.
The result — A two-income household with rental property, Moncton, New Brunswick
$99,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 3 · Backlog brought current
$82,000 Of Arbitrary Assessments Vacated After 6 Years — Pension-Splitting Retiree, Burnaby
Client: A retiree splitting eligible pension income with a spouse · Where: Burnaby, British Columbia · Engagement: 3 weeks, fixed fee
Arbitrary tax vacated$82,000
Years brought current6
Account statusCurrent
The situation — A retiree splitting eligible pension income with a spouse, Burnaby, British Columbia
6 years of unfiled returns had turned into notional assessments at a retiree splitting eligible pension income with a spouse in Burnaby, British Columbia. Underneath lay years of small donation receipts claimed one at a time instead of pooled onto a single return. Collections had already started.
What we did for A retiree splitting eligible pension income with a spouse, Burnaby, British Columbia
We carried the capital loss back against gains reported in the prior three years and generated a refund rather than a carry-forward balance. We then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result — A retiree splitting eligible pension income with a spouse, Burnaby, British Columbia
All 6 years were accepted as filed. $82,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 6 years.
Case Study 4 · Objection and relief
Desk-Review Assessment Of $139,000 Vacated — US-Dividend Investor, Ottawa
Client: A taxpayer with US-source dividends · Where: Ottawa, Ontario · Engagement: 3 weeks, fixed fee
Assessment vacated$139,000
Supporting recordsNow on file
AccountCleared
The situation — A taxpayer with US-source dividends, Ottawa, Ontario
A taxpayer with US-source dividends in Ottawa, Ontario was carrying $139,000 of penalties and interest. The charges arose from medical expenses claimed on a calendar-year basis when a shifted window was worth far more. Much of that amount accumulated during a period the CRA itself had delayed.
What we did for A taxpayer with US-source dividends, Ottawa, Ontario
We recalculated the instalments on the current year’s expected income rather than the prior year’s, which stopped the instalment interest from growing. We framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result — A taxpayer with US-source dividends, Ottawa, Ontario
The assessment was vacated. $139,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Case Study 5 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $52,000 Saved Each Year — Employee with Foreign Accounts, Guelph
Client: An employee with foreign investment accounts · Where: Guelph, Ontario · Engagement: 5 weeks, fixed fee
Annual saving$52,000
Tax on reorganisationDeferred
Elections filedOn time
The situation — An employee with foreign investment accounts, Guelph, Ontario
An employee with foreign investment accounts in Guelph, Ontario had outgrown the structure it started with. Foreign accounts that had crossed the T1135 threshold two years earlier was the immediate problem. The longer-term one was that the structure blocked the next step.
What we did for An employee with foreign investment accounts, Guelph, Ontario
We mapped the current structure and modelled the target. Then we reported the disposition and filed the principal residence designation for the year of sale, closing the late-designation exposure before the CRA raised it. The tax-deferred elections were filed on time and the supporting valuations documented.
The result — An employee with foreign investment accounts, Guelph, Ontario
The reorganisation completed without triggering tax, and the new structure saves approximately $52,000 a year while removing the exposure the old one carried.
The situation — A recently separated taxpayer, Kitchener, Ontario
A recently separated taxpayer in Kitchener, Ontario had already missed one deadline and was about to miss a second. Behind it sat employment expenses claimed with no signed T2200 from the employer to support them. A penalty of $106,000 was accruing.
What we did for A recently separated taxpayer, Kitchener, Ontario
We split the work into what had to happen before the deadline and what could follow it. Then we reset the medical expense claim window, transferred credits between spouses, and applied the tuition and disability amounts to the return that used them.
The result — A recently separated taxpayer, Kitchener, Ontario
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $106,000 of the penalty already assessed on the earlier year.
Reviewed by Udit Gupta, Founder and Tax Accountant for the 2025 tax year. 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.
