6 worked Disability Tax Credit Assistance 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 disability tax credit assistance work, not a specific client's file.
Case Study 1 · Deadline rescue
Filed On Time From A Standing Start, $122,000 Penalty Avoided — First-Time Home Buyer, Hamilton
Client: A first-time home buyer · Where: Hamilton, Ontario · Engagement: 10 weeks, fixed fee
Penalty avoided$122,000
Turnaround10 weeks
FiledOn time
The situation — A first-time home buyer, Hamilton, Ontario
A first-time home buyer in Hamilton, Ontario came to us 10 weeks before its filing deadline. The file came with a home sale never reported on the basis that the gain was exempt anyway. A late filing would have triggered a penalty of roughly $122,000 before interest.
What we did for A first-time home buyer, Hamilton, Ontario
We worked backwards from the deadline. 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. We prioritised the items that actually gated the filing and deferred everything that did not.
The result — A first-time home buyer, Hamilton, Ontario
The return was filed on time and complete. The $122,000 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, $18,000 Saved Each Year — Two-Income Landlord Household, Kelowna
Client: A two-income household with rental property · Where: Kelowna, British Columbia · Engagement: 11 weeks, fixed fee
Annual saving$18,000
Tax on reorganisationDeferred
Elections filedOn time
The situation — A two-income household with rental property, Kelowna, British Columbia
A two-income household with rental property in Kelowna, British Columbia had outgrown the structure it started with. Medical expenses claimed on a calendar-year basis when a shifted window was worth far more was the immediate problem. The longer-term one was that the structure blocked the next step.
What we did for A two-income household with rental property, Kelowna, British Columbia
We mapped the current structure and modelled the target. Then we filed the outstanding T1135 disclosures under the voluntary disclosure route before the CRA raised them. The tax-deferred elections were filed on time and the supporting valuations documented.
The result — A two-income household with rental property, Kelowna, British Columbia
The reorganisation completed without triggering tax, and the new structure saves approximately $18,000 a year while removing the exposure the old one carried.
Case Study 3 · Objection and relief
$124,000 Of Penalties And Interest Cancelled On Relief — Disability Amount Claimant, London
Client: A taxpayer claiming a dependant's transferred disability amount · Where: London, Ontario · Engagement: 3 weeks, fixed fee
Penalties and interest cancelled$124,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — A taxpayer claiming a dependant's transferred disability amount, London, Ontario
An assessment of $124,000 landed at a taxpayer claiming a dependant's transferred disability amount in London, Ontario following a desk review. It turned on years of small donation receipts claimed one at a time instead of pooled onto a single return. The auditor had not seen the records behind it.
What we did for A taxpayer claiming a dependant's transferred disability amount, London, 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 taxpayer claiming a dependant's transferred disability amount, London, Ontario
$124,000 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 $97,000 Cut From A 3-Year Backlog — Gig-Economy Driver, Calgary
Client: A gig-economy driver · Where: Calgary, Alberta · Engagement: 3 weeks, fixed fee
Balance reduced by$97,000
Backlog cleared3 years
CollectionsHalted
The situation — A gig-economy driver, Calgary, Alberta
By the time a gig-economy driver in Calgary, Alberta called, 3 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 gig-economy driver, Calgary, Alberta
We reconstructed the records year by year. We recalculated the instalments on the current year’s expected income rather than the prior year’s, which stopped the instalment interest from growing. Each filing replaced an arbitrary assessment with a real one.
The result — A gig-economy driver, Calgary, Alberta
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $97,000, and a relief application addressed part of the accumulated interest.
Case Study 5 · Missed incentive claimed
Incentive Review Recovered $91,000 Across 4 Open Years — Recently Separated Taxpayer, Kitchener
The situation — A recently separated taxpayer, Kitchener, Ontario
An incentive review at a recently separated taxpayer in Kitchener, Ontario started from a simple question: what has never been claimed? The answer ran to 4 years. It was driven by a home sale never reported on the basis that the gain was exempt anyway.
What we did for A recently separated taxpayer, Kitchener, Ontario
We obtained the signed T2200 and rebuilt the employment-expense claim on the prescribed form with the supporting records attached to the file. We documented eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result — A recently separated taxpayer, Kitchener, Ontario
The credits produced $91,000 across the open years. The tracking now in place means the following year's claim is documented as the work happens rather than reconstructed afterwards.
Case Study 6 · Scaling without breaking
Scaled To 87 Staff With $139,000 Of Working Capital Freed — Mid-Year Interprovincial Mover, Ottawa
Client: An employee who moved provinces mid-year · Where: Ottawa, Ontario · Engagement: 5 weeks, fixed fee
Headcount reached87
Working capital freed$139,000
Missed deadlinesZero
The situation — An employee who moved provinces mid-year, Ottawa, Ontario
An employee who moved provinces mid-year in Ottawa, Ontario was growing fast, with headcount reaching 87 in eighteen months. The back office had not kept up. RRSP room accumulated over eight years and never used in a high-income year was the first thing to break.
What we did for An employee who moved provinces mid-year, Ottawa, Ontario
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 built the compliance calendar for the size the business was becoming rather than the size it had been.
The result — An employee who moved provinces mid-year, Ottawa, Ontario
The business reached 87 staff with no missed remittance and no late filing. $139,000 of working capital was freed in the process.
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.
