6 worked Cryptocurrency 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 cryptocurrency tax return work, not a specific client's file.
Case Study 1 · Deadline rescue
Filed On Time From A Standing Start, $20,500 Penalty Avoided — Mid-Year Interprovincial Mover, Brampton
Client: An employee who moved provinces mid-year · Where: Brampton, Ontario · Engagement: 11 weeks, fixed fee
Penalty avoided$20,500
Turnaround11 weeks
FiledOn time
The situation — An employee who moved provinces mid-year, Brampton, Ontario
An employee who moved provinces mid-year in Brampton, Ontario came to us 11 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 $20,500 before interest.
What we did for An employee who moved provinces mid-year, Brampton, Ontario
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.
The result — An employee who moved provinces mid-year, Brampton, Ontario
The return was filed on time and complete. The $20,500 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Case Study 2 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $32,000 Saved Each Year — Gig-Economy Driver, Surrey
Client: A gig-economy driver · Where: Surrey, British Columbia · Engagement: 4 weeks, fixed fee
Annual saving$32,000
Tax on reorganisationDeferred
Elections filedOn time
The situation — A gig-economy driver, Surrey, British Columbia
A gig-economy driver in Surrey, British Columbia had outgrown the structure it started with. Three years of returns filed without the slips that had been mailed to an old address was the immediate problem. The longer-term one was that the structure blocked the next step.
What we did for A gig-economy driver, Surrey, British Columbia
We mapped the current structure and modelled the target. Then we carried the capital loss back against gains reported in the prior three years and generated a refund rather than a carry-forward balance. The tax-deferred elections were filed on time and the supporting valuations documented.
The result — A gig-economy driver, Surrey, British Columbia
The reorganisation completed without triggering tax, and the new structure saves approximately $32,000 a year while removing the exposure the old one carried.
Case Study 3 · Objection and relief
$57,000 Of Penalties And Interest Cancelled On Relief — Two-Income Landlord Household, Mississauga
Client: A two-income household with rental property · Where: Mississauga, Ontario · Engagement: 9 weeks, fixed fee
Penalties and interest cancelled$57,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — A two-income household with rental property, Mississauga, Ontario
An assessment of $57,000 landed at a two-income household with rental property in Mississauga, Ontario following a desk review. It turned on a home sale never reported on the basis that the gain was exempt anyway. The auditor had not seen the records behind it.
What we did for A two-income household with rental property, Mississauga, Ontario
We reset the medical expense claim window, transferred credits between spouses, and applied the tuition and disability amounts to the return that used them. We then set out the legislative basis for the position alongside the documents supporting it.
The result — A two-income household with rental property, Mississauga, Ontario
$57,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 4 · Backlog brought current
Collections Halted And $33,500 Cut From A 6-Year Backlog — US-Dividend Investor, Guelph
Client: A taxpayer with US-source dividends · Where: Guelph, Ontario · Engagement: 6 weeks, fixed fee
Balance reduced by$33,500
Backlog cleared6 years
CollectionsHalted
The situation — A taxpayer with US-source dividends, Guelph, Ontario
By the time a taxpayer with US-source dividends in Guelph, Ontario called, 6 years were outstanding. The CRA had assessed on estimates. Underneath it sat a rental property reported without any capital cost allowance analysis.
What we did for A taxpayer with US-source dividends, Guelph, Ontario
We reconstructed the records year by year. 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. Each filing replaced an arbitrary assessment with a real one.
The result — A taxpayer with US-source dividends, Guelph, Ontario
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $33,500, and a relief application addressed part of the accumulated interest.
Case Study 5 · Missed incentive claimed
$38,500 Credit Claim Filed And Accepted Without Adjustment — Recently Separated Taxpayer, Victoria
Client: A recently separated taxpayer · Where: Victoria, British Columbia · Engagement: 4 weeks, fixed fee
Claim value$38,500
AcceptedWithout adjustment
RepeatableAnnually
The situation — A recently separated taxpayer, Victoria, British Columbia
A recently separated taxpayer in Victoria, British Columbia assumed the credits did not apply to a business its size. Three years of returns filed without the slips that had been mailed to an old address meant they had applied all along.
What we did for A recently separated taxpayer, Victoria, British Columbia
We identified the qualifying activity and built the documentation to support it. Then 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 result — A recently separated taxpayer, Victoria, British Columbia
$38,500 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
Case Study 6 · Scaling without breaking
Second-Province Expansion Handled, $125,000 Of Cash Released — Disability Amount Claimant, Burnaby
Client: A taxpayer claiming a dependant's transferred disability amount · Where: Burnaby, British Columbia · Engagement: 6 weeks, fixed fee
Cash released$125,000
New registrationsComplete on day one
Compliance gapsNone
The situation — A taxpayer claiming a dependant's transferred disability amount, Burnaby, British Columbia
Revenue at a taxpayer claiming a dependant's transferred disability amount in Burnaby, British Columbia was up sharply and cash was tighter than ever. Underneath it sat foreign accounts that had crossed the T1135 threshold two years earlier.
What we did for A taxpayer claiming a dependant's transferred disability amount, Burnaby, British Columbia
We obtained the signed T2200 and rebuilt the employment-expense claim on the prescribed form with the supporting records attached to the file. Every new obligation was set up before it was triggered, not after. That covered registration, remittance frequency and provincial filing.
The result — A taxpayer claiming a dependant's transferred disability amount, Burnaby, British Columbia
$125,000 of cash was released from the working capital cycle. The expansion completed with every registration and filing obligation covered from day one.
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.
