6 worked Charitable Donation Tax Review 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 charitable donation tax review work, not a specific client's file.
Client: A taxpayer claiming a dependant's transferred disability amount. Where: Calgary, Alberta. Engagement: 3 weeks, fixed fee.
Proposed tax cleared$129,000
Review duration3 weeks
OutcomeNo change
Case 1: the situation
A taxpayer claiming a dependant's transferred disability amount in Calgary, Alberta was selected for review. Employment expenses claimed with no signed T2200 from the employer to support them had shown up in the CRA's automated matching. The proposed adjustment on charitable donation tax review came to $129,000.
Case 1: what we did
We recalculated the instalments on the current year’s expected income rather than the prior year’s, which stopped the instalment interest from growing. Every figure in the response traced to a source record the auditor could verify without asking a second question.
Case 1: the result
The review closed with no change. $129,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 2 · Planning that cut the bill
$47,000 Cut From The Annual Tax Bill — Two-Income Landlord Household, Winnipeg
Client: A two-income household with rental property. Where: Winnipeg, Manitoba. Engagement: 7 weeks, fixed fee.
First-year saving$47,000
RepeatsAnnually
Filing positionUnchanged in risk
Case 2: the situation
A two-income household with rental property in Winnipeg, Manitoba was compliant but paying more than it needed to. The prior year had been filed correctly. It still left a rental property reported without any capital cost allowance analysis on the table.
Case 2: what we did
We modelled the current position against the alternatives before changing anything. 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.
Case 2: the result
The change saved $47,000 in the first year and repeats annually. Nothing about the filings became more aggressive. The position is simply the one the rules already allowed.
Case Study 3 · Records and systems rebuilt
29 Months Reconciled And $16,500 Of Input Tax Recovered — First-Time Home Buyer, London
Client: A first-time home buyer. Where: London, Ontario. Engagement: 5 weeks, fixed fee.
Months reconciled29
Input tax recovered$16,500
Close time10 days
Case 3: the situation
Nothing reconciled at a first-time home buyer in London, Ontario. Every filing started with 29 months of cleanup. The file was carrying a home sale never reported on the basis that the gain was exempt anyway.
Case 3: what we did
We rebuilt from source rather than correcting on top of the existing file. 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 we set the routine that keeps it clean.
Case 3: the result
29 months reconciled to the bank. The close now takes 10 days, and $16,500 of previously unclaimable input tax was recovered in the process.
Case Study 4 · Cash and remittance control
Remittance Schedule Corrected, $114,000 Refunded — US-Dividend Investor, Red Deer
Client: A taxpayer with US-source dividends. Where: Red Deer, Alberta. Engagement: 11 weeks, fixed fee.
Overpayment refunded$114,000
Late remittances sinceZero
ScheduleAutomated
Case 4: the situation
Remittances at a taxpayer with US-source dividends in Red Deer, Alberta were consistently late by a few days. That was enough to trigger penalties every quarter. Behind it sat three years of returns filed without the slips that had been mailed to an old address.
Case 4: what we did
We obtained the signed T2200 and rebuilt the employment-expense claim on the prescribed form with the supporting records attached to the file. Then we moved the remittance dates into a scheduled process rather than a monthly decision.
Case 4: the result
Penalties stopped from the following remittance onwards, and $114,000 of overpaid instalments was refunded.
Case Study 5 · Deadline rescue
Filed On Time From A Standing Start, $132,000 Penalty Avoided — Mid-Year Interprovincial Mover, Kelowna
Client: An employee who moved provinces mid-year. Where: Kelowna, British Columbia. Engagement: 7 weeks, fixed fee.
Penalty avoided$132,000
Turnaround7 weeks
FiledOn time
Case 5: the situation
An employee who moved provinces mid-year in Kelowna, British Columbia came to us 7 weeks before its filing deadline. The file came with RRSP room accumulated over eight years and never used in a high-income year. A late filing would have triggered a penalty of roughly $132,000 before interest.
Case 5: what we did
We worked backwards from the deadline. We filed the outstanding T1135 disclosures under the voluntary disclosure route before the CRA raised them. We prioritised the items that actually gated the filing and deferred everything that did not.
Case 5: the result
The return was filed on time and complete. The $132,000 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Client: A recently separated taxpayer. Where: Vancouver, British Columbia. Engagement: 6 weeks, fixed fee.
Annual saving$44,000
ReorganisationTax-neutral
StructureMatches operations
Case 6: the situation
The structure at a recently separated taxpayer in Vancouver, British Columbia needed fixing. The file was carrying years of small donation receipts claimed one at a time instead of pooled onto a single return. Every option for fixing it ran through a reorganisation that had to be done without triggering tax.
Case 6: what we did
We worked with the client's lawyer. Together, 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 also prepared the elections, resolutions and valuations the structure needed to stand up.
Case 6: the result
The structure now matches the business. Annual saving of $44,000, and the reorganisation itself was tax-neutral.
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.
