6 Bankruptcy Tax Return Assistance 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 bankruptcy tax return assistance work, not a general example.
Case Study 1 · Missed incentive claimed
$82,000 In Credits Claimed That Prior Filings Had Missed — First-Time Home Buyer, Halifax
Client: A first-time home buyer · Where: Halifax, Nova Scotia · Engagement: 4 weeks, fixed fee
Credits claimed$82,000
Years adjusted4
Review outcomeNo adjustment
The situation
A first-time home buyer in Halifax, Nova Scotia had been filing for 4 years without ever claiming the incentives its activity qualified for. Behind that sat three years of returns filed without the slips that had been mailed to an old address.
What we did
We tested each activity against the eligibility criteria rather than the description on the invoice, then filed the outstanding T1135 disclosures under the voluntary disclosure route before the CRA raised them.
The result
$82,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 2 · Deadline rescue
$112,000 Late-Filing Penalty Cancelled On Relief Application — Employee with Foreign Investment, Saskatoon
Client: An employee with foreign investment accounts · Where: Saskatoon, Saskatchewan · Engagement: 7 weeks, fixed fee
Penalty cancelled$112,000
Relief applicationGranted
ReturnAccepted as filed
The situation
An employee with foreign investment accounts in Saskatoon, Saskatchewan had already missed one deadline and was about to miss a second. Behind it sat three years of returns filed without the slips that had been mailed to an old address, and a penalty of $112,000 was accruing.
What we did
We split the work into what had to happen before the deadline and what could follow it, then pulled the full slip history from the CRA record, refiled the affected years by adjustment request, and recovered the credits that had been missed.
The result
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $112,000 of the penalty already assessed on the earlier year.
Case Study 3 · CRA review defended
$128,000 Proposed Adjustment Withdrawn In Full — Gig-Economy Driver, London
A gig-economy driver in London, Ontario received a proposal letter opening a review of bankruptcy tax return assistance. The CRA had identified foreign accounts that had crossed the T1135 threshold two years earlier and proposed an adjustment of $128,000, with 30 days to respond.
What we did
We treated the response as an evidence exercise rather than an argument. We reset the medical expense claim window, transferred credits between spouses, and applied the tuition and disability amounts to the return that used them, then indexed every supporting document against the specific line the auditor had questioned.
The result
The proposed adjustment was withdrawn in full — all $128,000 of it. The file closed in 8 weeks with no change to the assessed amounts and no penalty.
Case Study 4 · Objection and relief
$115,000 Of Penalties And Interest Cancelled On Relief — Physician in Their First, Burnaby
Client: A physician in their first year of practice · Where: Burnaby, British Columbia · Engagement: 11 weeks, fixed fee
Penalties and interest cancelled$115,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation
An assessment of $115,000 landed at a physician in their first year of practice in Burnaby, British Columbia following a desk review. The auditor had not seen the records behind RRSP room accumulated over eight years and never used in a high-income year.
What we did
We carried the capital loss back against gains reported in the prior three years and generated a refund rather than a carry-forward balance, then set out the legislative basis for the position alongside the documents supporting it.
The result
$115,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 5 · Records and systems rebuilt
15 Months Reconciled And $7,500 Of Input Tax Recovered — Taxpayer with US-Source Dividends, Brampton
Client: A taxpayer with US-source dividends · Where: Brampton, Ontario · Engagement: 8 weeks, fixed fee
Months reconciled15
Input tax recovered$7,500
Close time10 days
The situation
A taxpayer with US-source dividends in Brampton, Ontario was carrying a rental property reported without any capital cost allowance analysis. Nothing reconciled, and every filing started with 15 months of cleanup.
What we did
We rebuilt from source rather than correcting on top of the existing file. We filed the outstanding T1135 disclosures under the voluntary disclosure route before the CRA raised them, then set the routine that keeps it clean.
The result
15 months reconciled to the bank. The close now takes 10 days, and $7,500 of previously unclaimable input tax was recovered in the process.
Case Study 6 · Structure rebuilt
Holding Structure Added, $10,500 Saved Annually — Self-Employed Consultant, Regina
A self-employed consultant in Regina, Saskatchewan was carrying medical expenses claimed on a calendar-year basis when a shifted window was worth far more, and every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did
Working with the client's lawyer, 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 and prepared the elections, resolutions and valuations the structure needed to stand up.
The result
The structure now matches the business. Annual saving of $10,500, and the reorganisation itself was tax-neutral.
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.
