6 worked Deceased Person Final 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 deceased person final tax return work, not a specific client's file.
Case Study 1 · Cash and remittance control
Remittance Schedule Corrected, $42,000 Refunded — Pension-Splitting Retiree, Red Deer
Client: A retiree splitting eligible pension income with a spouse · Where: Red Deer, Alberta · Engagement: 11 weeks, fixed fee
Overpayment refunded$42,000
Late remittances sinceZero
ScheduleAutomated
The situation — A retiree splitting eligible pension income with a spouse, Red Deer, Alberta
Remittances at a retiree splitting eligible pension income with a spouse in Red Deer, Alberta were consistently late by a few days. That was enough to trigger penalties every quarter. Behind it sat years of small donation receipts claimed one at a time instead of pooled onto a single return.
What we did for A retiree splitting eligible pension income with a spouse, Red Deer, Alberta
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.
The result — A retiree splitting eligible pension income with a spouse, Red Deer, Alberta
Penalties stopped from the following remittance onwards, and $42,000 of overpaid instalments was refunded.
Case Study 2 · Objection and relief
$92,000 Of Penalties And Interest Cancelled On Relief — Student Filer, Winnipeg
Client: A full-time student with tuition credits and part-time earnings · Where: Winnipeg, Manitoba · Engagement: 3 weeks, fixed fee
Penalties and interest cancelled$92,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — A full-time student with tuition credits and part-time earnings, Winnipeg, Manitoba
An assessment of $92,000 landed at a full-time student with tuition credits and part-time earnings in Winnipeg, Manitoba following a desk review. It turned on a rental property reported without any capital cost allowance analysis. The auditor had not seen the records behind it.
What we did for A full-time student with tuition credits and part-time earnings, Winnipeg, Manitoba
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 then set out the legislative basis for the position alongside the documents supporting it.
The result — A full-time student with tuition credits and part-time earnings, Winnipeg, Manitoba
$92,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 3 · Scaling without breaking
Scaled To 83 Staff With $22,000 Of Working Capital Freed — First-Year Physician, Barrie
Client: A physician in their first year of practice · Where: Barrie, Ontario · Engagement: 11 weeks, fixed fee
Headcount reached83
Working capital freed$22,000
Missed deadlinesZero
The situation — A physician in their first year of practice, Barrie, Ontario
A physician in their first year of practice in Barrie, Ontario was growing fast, with headcount reaching 83 in eighteen months. The back office had not kept up. Employment expenses claimed with no signed T2200 from the employer to support them was the first thing to break.
What we did for A physician in their first year of practice, Barrie, Ontario
We carried the capital loss back against gains reported in the prior three years and generated a refund rather than a carry-forward balance. We built the compliance calendar for the size the business was becoming rather than the size it had been.
The result — A physician in their first year of practice, Barrie, Ontario
The business reached 83 staff with no missed remittance and no late filing. $22,000 of working capital was freed in the process.
Case Study 4 · Records and systems rebuilt
31 Months Reconciled And $16,500 Of Input Tax Recovered — Employee with Foreign Accounts, Saskatoon
Client: An employee with foreign investment accounts · Where: Saskatoon, Saskatchewan · Engagement: 5 weeks, fixed fee
Months reconciled31
Input tax recovered$16,500
Close time8 days
The situation — An employee with foreign investment accounts, Saskatoon, Saskatchewan
Nothing reconciled at an employee with foreign investment accounts in Saskatoon, Saskatchewan. Every filing started with 31 months of cleanup. The file was carrying RRSP room accumulated over eight years and never used in a high-income year.
What we did for An employee with foreign investment accounts, Saskatoon, Saskatchewan
We rebuilt from source rather than correcting on top of the existing file. 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. Then we set the routine that keeps it clean.
The result — An employee with foreign investment accounts, Saskatoon, Saskatchewan
31 months reconciled to the bank. The close now takes 8 days, and $16,500 of previously unclaimable input tax was recovered in the process.
Case Study 5 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $45,000 Saved Each Year — Multi-Source Retiree, Toronto
Client: A retiree drawing from three sources · Where: Toronto, Ontario · Engagement: 8 weeks, fixed fee
Annual saving$45,000
Tax on reorganisationDeferred
Elections filedOn time
The situation — A retiree drawing from three sources, Toronto, Ontario
A retiree drawing from three sources in Toronto, Ontario 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 retiree drawing from three sources, Toronto, Ontario
We mapped the current structure and modelled the target. 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 tax-deferred elections were filed on time and the supporting valuations documented.
The result — A retiree drawing from three sources, Toronto, Ontario
The reorganisation completed without triggering tax, and the new structure saves approximately $45,000 a year while removing the exposure the old one carried.
Case Study 6 · Missed incentive claimed
$136,000 In Credits Claimed That Prior Filings Had Missed — Commissioned Salesperson, Regina
The situation — A commissioned salesperson, Regina, Saskatchewan
A commissioned salesperson in Regina, Saskatchewan had been filing for 4 years. In that time, the incentives its activity qualified for were never claimed. Behind that sat employment expenses claimed with no signed T2200 from the employer to support them.
What we did for A commissioned salesperson, Regina, Saskatchewan
We tested each activity against the eligibility criteria rather than the description on the invoice. Then 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.
The result — A commissioned salesperson, Regina, Saskatchewan
$136,000 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.
