6 worked Cross-Border Estate and Trust Tax 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 cross-border estate and trust tax work, not a specific client's file.
Case Study 1 · Cross-border exposure resolved
$136,000 Of Excess Withholding Refunded On Election — US LLC Shareholder, Moncton
Client: A shareholder of a US LLC. Where: Moncton, New Brunswick. Engagement: 7 weeks, fixed fee.
Withholding refunded$136,000
ElectionFiled and accepted
Cross-border reportingConsistent
Case 1: the situation
A shareholder of a US LLC in Moncton, New Brunswick was paying tax in two countries on one stream of income. A US LLC taxed as a corporation in Canada, producing double tax on the same income had never been reviewed against the treaty.
Case 1: what we did
We restructured the US holding so the Canadian and US characterisations aligned, ending the double taxation going forward. We also coordinated the timing so the credit claimed in Canada matched the tax actually paid abroad.
Case 1: the result
$136,000 of excess withholding was refunded and the exposure closed. Both sides of the border now report consistently, which is what keeps the credit claimable.
Client: A contractor working on both sides of the border. Where: Barrie, Ontario. Engagement: 7 weeks, fixed fee.
Penalty cancelled$85,000
Relief applicationGranted
ReturnAccepted as filed
Case 2: the situation
A contractor working on both sides of the border in Barrie, Ontario had already missed one deadline and was about to miss a second. Behind it sat 25% withholding on gross Canadian rent where a section 216 election would have taxed only the net. A penalty of $85,000 was accruing.
Case 2: what we did
We split the work into what had to happen before the deadline and what could follow it. Then we registered the payer for a non-resident withholding account, remitted the Regulation 105 amounts due, and applied for waivers covering the rest of the contract.
Case 2: the result
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $85,000 of the penalty already assessed on the earlier year.
Case Study 3 · Sale and succession
Intergenerational Transfer Completed With $260,000 Deferred — US Pension Recipient, Kelowna
Client: A Canadian resident receiving US pension income. Where: Kelowna, British Columbia. Engagement: 5 weeks, fixed fee.
Tax deferred$260,000
TransferCompleted
RecordsReview-ready
Case 3: the situation
A generational transfer at a Canadian resident receiving US pension income in Kelowna, British Columbia had been discussed for years without a plan. No valuation on file to support the price the parties had agreed meant the transfer as contemplated would have been fully taxable.
Case 3: what we did
We aligned the Canadian and US reporting of the same income so the foreign tax credit claim carried support on both returns. We sequenced the steps so each one was complete and documented before the next depended on it.
Case 3: the result
$260,000 of tax was deferred through the transfer, and the successor generation took over a corporation whose records stood up to review.
Case Study 4 · Planning that cut the bill
$31,000 Saved By Correcting What Prior Filings Had Missed — US Citizen in Canada, Guelph
Client: A US citizen living in Canada. Where: Guelph, Ontario. Engagement: 6 weeks, fixed fee.
Saving identified$31,000
RecurringYes
Positions documentedAll
Case 4: the situation
A US citizen living in Canada in Guelph, Ontario asked for a second opinion on cross-border estate and trust tax. That followed three years of rising tax. The review found US tax paid but no foreign tax credit claimed on the Canadian return.
Case 4: what we did
We built the comparison first: current structure against two alternatives. Then we filed the section 216 election with the supporting rental statements and recovered the excess withholding as a refund.
Case 4: the result
First-year saving of $31,000, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 5 · Objection and relief
Notice Of Objection Allowed In Full, $56,000 Reversed — Arizona Snowbird, Lethbridge
Client: A snowbird spending winters in Arizona. Where: Lethbridge, Alberta. Engagement: 8 weeks, fixed fee.
Amount reversed$56,000
ObjectionAllowed in full
Account balanceNil
Case 5: the situation
A snowbird spending winters in Arizona in Lethbridge, Alberta had been reassessed for $56,000. 13 days were left on the objection deadline. The reassessment rested on invoices paid to a non-resident consultant working on site in Canada with no Regulation 105 withholding taken.
Case 5: what we did
We filed the objection inside the deadline with a complete submission rather than a placeholder. Alongside it, we applied the treaty rate to the dividend withholding, filed the NR4 return, and remitted the shortfall before the CRA assessed the payer for it.
Case 5: the result
The appeals officer allowed the objection in full. $56,000 was reversed and the account returned to a nil balance.
Case Study 6 · Missed incentive claimed
$109,000 In Credits Claimed That Prior Filings Had Missed — US Retirement Account Holder, Toronto
Client: A dual citizen with a US retirement account. Where: Toronto, Ontario. Engagement: 5 weeks, fixed fee.
Credits claimed$109,000
Years adjusted5
Review outcomeNo adjustment
Case 6: the situation
A dual citizen with a US retirement account in Toronto, Ontario had been filing for 5 years. In that time, the incentives its activity qualified for were never claimed. Behind that sat dividends paid to a non-resident shareholder with nothing withheld, leaving the payer holding the liability.
Case 6: what we did
We tested each activity against the eligibility criteria rather than the description on the invoice. Then we filed the outstanding T1135 disclosures through the Voluntary Disclosures Program, which eliminated the penalty exposure entirely.
Case 6: the result
$109,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
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.
