6 worked Commission Employee Tax Return 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 commission employee tax return work, not a specific client's file.
Case Study 1 · Objection and relief
Desk-Review Assessment Of $43,000 Vacated — Two-Income Landlord Household, Kelowna
Client: A two-income household with rental property · Where: Kelowna, British Columbia · Engagement: 4 weeks, fixed fee
Assessment vacated$43,000
Supporting recordsNow on file
AccountCleared
The situation — A two-income household with rental property, Kelowna, British Columbia
A two-income household with rental property in Kelowna, British Columbia was carrying $43,000 of penalties and interest. The charges arose from RRSP room accumulated over eight years and never used in a high-income year. Much of that amount accumulated during a period the CRA itself had delayed.
What we did for A two-income household with rental property, Kelowna, British Columbia
We filed the outstanding T1135 disclosures under the voluntary disclosure route before the CRA raised them. We framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result — A two-income household with rental property, Kelowna, British Columbia
The assessment was vacated. $43,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Case Study 2 · CRA review defended
Audit Defence Closed In 4 Weeks, $122,000 Cleared — US-Dividend Investor, Regina
Client: A taxpayer with US-source dividends · Where: Regina, Saskatchewan · Engagement: 4 weeks, fixed fee
Proposed tax cleared$122,000
Review duration4 weeks
OutcomeNo change
The situation — A taxpayer with US-source dividends, Regina, Saskatchewan
A taxpayer with US-source dividends in Regina, Saskatchewan was selected for review. A rental property reported without any capital cost allowance analysis had shown up in the CRA's automated matching. The proposed adjustment on commission employee tax return came to $122,000.
What we did for A taxpayer with US-source dividends, Regina, Saskatchewan
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. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result — A taxpayer with US-source dividends, Regina, Saskatchewan
The review closed with no change. $122,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 3 · Deadline rescue
3-Week Turnaround Beat The Deadline And Saved $109,000 — Recently Separated Taxpayer, Hamilton
The situation — A recently separated taxpayer, Hamilton, Ontario
A recently separated taxpayer in Hamilton, Ontario was weeks away from the deadline for commission employee tax return. Behind that sat medical expenses claimed on a calendar-year basis when a shifted window was worth far more. The exposure if the date slipped was around $109,000.
What we did for A recently separated taxpayer, Hamilton, 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. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — A recently separated taxpayer, Hamilton, Ontario
Filed with 13 days to spare. $109,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 4 · Missed incentive claimed
$145,000 Credit Claim Filed And Accepted Without Adjustment — Disability Amount Claimant, Toronto
Client: A taxpayer claiming a dependant's transferred disability amount · Where: Toronto, Ontario · Engagement: 6 weeks, fixed fee
Claim value$145,000
AcceptedWithout adjustment
RepeatableAnnually
The situation — A taxpayer claiming a dependant's transferred disability amount, Toronto, Ontario
A taxpayer claiming a dependant's transferred disability amount in Toronto, Ontario assumed the credits did not apply to a business its size. Foreign accounts that had crossed the T1135 threshold two years earlier meant they had applied all along.
What we did for A taxpayer claiming a dependant's transferred disability amount, Toronto, Ontario
We identified the qualifying activity and built the documentation to support 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 taxpayer claiming a dependant's transferred disability amount, Toronto, Ontario
$145,000 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
Case Study 5 · Records and systems rebuilt
Month-End Close Cut From 6 Weeks To 9 Days — First-Time Home Buyer, Victoria
Client: A first-time home buyer · Where: Victoria, British Columbia · Engagement: 5 weeks, fixed fee
Close time before6 weeks
Close time after9 days
Year-endReview, not rebuild
The situation — A first-time home buyer, Victoria, British Columbia
The accounting file at a first-time home buyer in Victoria, British Columbia had a weak foundation. It was built on employment expenses claimed with no signed T2200 from the employer to support them. The year-end had taken 6 weeks each of the last three years.
What we did for A first-time home buyer, Victoria, British Columbia
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. We also moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result — A first-time home buyer, Victoria, British Columbia
The file reconciles. Month-end closes in 9 days instead of 6 weeks, and the year-end is a review rather than a reconstruction.
Case Study 6 · Cash and remittance control
$16,000 Of Working Capital Freed From The Tax Cycle — Mid-Year Interprovincial Mover, Saskatoon
Client: An employee who moved provinces mid-year · Where: Saskatoon, Saskatchewan · Engagement: 7 weeks, fixed fee
Working capital freed$16,000
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation — An employee who moved provinces mid-year, Saskatoon, Saskatchewan
An employee who moved provinces mid-year in Saskatoon, Saskatchewan was profitable on paper and short of cash every month. Years of small donation receipts claimed one at a time instead of pooled onto a single return explained most of the gap.
What we did for An employee who moved provinces mid-year, Saskatoon, Saskatchewan
We obtained the signed T2200 and rebuilt the employment-expense claim on the prescribed form with the supporting records attached to the file. We also built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result — An employee who moved provinces mid-year, Saskatoon, Saskatchewan
$16,000 was released back into working capital. Remittances have been on time every period since, and the forecast shows the tax outflow before it lands.
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.
