6 worked Emigrant and Departure 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 emigrant and departure tax return work, not a specific client's file.
Case Study 1 · Cross-border exposure resolved
$82,000 Of Double Taxation Removed On Treaty Position — Non-Resident Director, Moncton
Client: A non-resident director of a Canadian corporation · Where: Moncton, New Brunswick · Engagement: 5 weeks, fixed fee
Double tax removed$82,000
DisclosureBrought current
Penalty exposureEliminated
The situation — A non-resident director of a Canadian corporation, Moncton, New Brunswick
A non-resident director of a Canadian corporation in Moncton, New Brunswick had US-side activity that the Canadian filings had never addressed. A T1135 filed for the year of arrival, when none was required, and none filed for the years that followed meant the same income was being taxed twice.
What we did for A non-resident director of a Canadian corporation, Moncton, New Brunswick
We established the residency and source position first, then filed the section 216 returns for the open years so the rent was taxed on a net basis after allowable expenses, and recovered the excess withholding as a refund so the Canadian and foreign filings finally told the same story.
The result — A non-resident director of a Canadian corporation, Moncton, New Brunswick
$82,000 of double taxation was removed, the disclosure obligations were brought current, and the penalty exposure was eliminated through the voluntary route.
Case Study 2 · Objection and relief
Notice Of Objection Allowed In Full, $31,500 Reversed — Non-Resident Residential Landlord, Surrey
Client: A non-resident residential landlord · Where: Surrey, British Columbia · Engagement: 11 weeks, fixed fee
Amount reversed$31,500
ObjectionAllowed in full
Account balanceNil
The situation — A non-resident residential landlord, Surrey, British Columbia
A non-resident residential landlord in Surrey, British Columbia had been reassessed for $31,500 and had 8 days left on the objection deadline. The reassessment rested on personal credits claimed in full for a year of part-year residency, as though the taxpayer had been resident from January.
What we did for A non-resident residential landlord, Surrey, British Columbia
We filed the objection inside the deadline with a complete submission rather than a placeholder, and mapped the residential ties on each side of the departure date, fixed the date residency actually ceased, and filed the emigrant return with the deemed disposition and the property list built on that date.
The result — A non-resident residential landlord, Surrey, British Columbia
The appeals officer allowed the objection in full. $31,500 was reversed and the account returned to a nil balance.
Case Study 3 · CRA review defended
$41,000 Proposed Adjustment Withdrawn In Full — Non-Resident Pensioner, Kelowna
Client: A non-resident pension recipient · Where: Kelowna, British Columbia · Engagement: 10 weeks, fixed fee
Adjustment withdrawn$41,000
File closed in10 weeks
Penalties assessedNone
The situation — A non-resident pension recipient, Kelowna, British Columbia
A non-resident pension recipient in Kelowna, British Columbia received a proposal letter opening a review of emigrant and departure tax return. The CRA had identified rent remitted abroad in full by a Canadian agent who had never been told the withholding was their obligation and proposed an adjustment of $41,000, with 30 days to respond.
What we did for A non-resident pension recipient, Kelowna, British Columbia
We treated the response as an evidence exercise rather than an argument. We applied for the withholding waiver before the next payment cycle and set up the T4A-NR reporting so the withholding stopped exceeding the tax that was actually owed, then indexed every supporting document against the specific line the auditor had questioned.
The result — A non-resident pension recipient, Kelowna, British Columbia
The proposed adjustment was withdrawn in full — all $41,000 of it. The file closed in 10 weeks with no change to the assessed amounts and no penalty.
Case Study 4 · Deadline rescue
Filed On Time From A Standing Start, $19,500 Penalty Avoided — Inbound Corporate Assignee, Saskatoon
The situation — An inbound corporate assignee, Saskatoon, Saskatchewan
An inbound corporate assignee in Saskatoon, Saskatchewan came to us 10 weeks before its filing deadline with a house in Canada still available for occupation and a spouse still resident, while the returns were filed as a non-resident. A late filing would have triggered a penalty of roughly $19,500 before interest.
What we did for An inbound corporate assignee, Saskatoon, Saskatchewan
We worked backwards from the deadline. We counted the days of presence in Canada year by year, established that the deemed residence rule had been triggered, and brought the world-income returns current for the affected years, prioritising the items that actually gated the filing and deferring everything that did not.
The result — An inbound corporate assignee, Saskatoon, Saskatchewan
The return was filed on time and complete. The $19,500 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Case Study 5 · Missed incentive claimed
$95,000 Credit Claim Filed And Accepted Without Adjustment — Non-Resident Shareholder, Lethbridge
Client: A non-resident shareholder drawing dividends · Where: Lethbridge, Alberta · Engagement: 6 weeks, fixed fee
Claim value$95,000
AcceptedWithout adjustment
RepeatableAnnually
The situation — A non-resident shareholder drawing dividends, Lethbridge, Alberta
A non-resident shareholder drawing dividends in Lethbridge, Alberta assumed the credits did not apply to a business its size. A treaty tie-breaker position asserted on the return with no analysis behind it meant they had applied all along.
What we did for A non-resident shareholder drawing dividends, Lethbridge, Alberta
We identified the qualifying activity, built the documentation to support it, and corrected the foreign property reporting from the first year it was actually required, using the voluntary route before the CRA raised it.
The result — A non-resident shareholder drawing dividends, Lethbridge, Alberta
$95,000 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
Case Study 6 · Records and systems rebuilt
18 Months Reconciled And $13,500 Of Input Tax Recovered — First-Year Resident, Burnaby
Client: A first-year Canadian resident · Where: Burnaby, British Columbia · Engagement: 7 weeks, fixed fee
Months reconciled18
Input tax recovered$13,500
Close time6 days
The situation — A first-year Canadian resident, Burnaby, British Columbia
A first-year Canadian resident in Burnaby, British Columbia was carrying a treaty tie-breaker position asserted on the return with no analysis behind it. Nothing reconciled, and every filing started with 18 months of cleanup.
What we did for A first-year Canadian resident, Burnaby, British Columbia
We rebuilt from source rather than correcting on top of the existing file. We filed the section 217 election so the Canadian pension and benefit income was taxed under the ordinary rate structure rather than at the flat withholding rate, after running the calculation both ways, then set the routine that keeps it clean.
The result — A first-year Canadian resident, Burnaby, British Columbia
18 months reconciled to the bank. The close now takes 6 days, and $13,500 of previously unclaimable input tax was recovered in the process.
Reviewed for the 2025 tax year by Udit Gupta, Founder and Tax Accountant. 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.
