6 worked Employee Stock Option Tax Reporting 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 employee stock option tax reporting work, not a specific client's file.
Case Study 1 · Backlog brought current
Collections Halted And $141,000 Cut From A 3-Year Backlog — Multi-Source Retiree, Edmonton
Client: A retiree drawing from three sources · Where: Edmonton, Alberta · Engagement: 9 weeks, fixed fee
Balance reduced by$141,000
Backlog cleared3 years
CollectionsHalted
The situation — A retiree drawing from three sources, Edmonton, Alberta
By the time a retiree drawing from three sources in Edmonton, 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 retiree drawing from three sources, Edmonton, Alberta
We reconstructed the records year by year. We carried the capital loss back against gains reported in the prior three years and generated a refund rather than a carry-forward balance. Each filing replaced an arbitrary assessment with a real one.
The result — A retiree drawing from three sources, Edmonton, Alberta
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $141,000, and a relief application addressed part of the accumulated interest.
Case Study 2 · Missed incentive claimed
$33,500 Credit Claim Filed And Accepted Without Adjustment — First-Time Home Buyer, Red Deer
Client: A first-time home buyer · Where: Red Deer, Alberta · Engagement: 7 weeks, fixed fee
Claim value$33,500
AcceptedWithout adjustment
RepeatableAnnually
The situation — A first-time home buyer, Red Deer, Alberta
A first-time home buyer in Red Deer, Alberta assumed the credits did not apply to a business its size. A home sale never reported on the basis that the gain was exempt anyway meant they had applied all along.
What we did for A first-time home buyer, Red Deer, Alberta
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 first-time home buyer, Red Deer, Alberta
$33,500 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
Case Study 3 · Scaling without breaking
Second-Province Expansion Handled, $115,000 Of Cash Released — Employee with Foreign Accounts, Ottawa
Client: An employee with foreign investment accounts · Where: Ottawa, Ontario · Engagement: 9 weeks, fixed fee
Cash released$115,000
New registrationsComplete on day one
Compliance gapsNone
The situation — An employee with foreign investment accounts, Ottawa, Ontario
Revenue at an employee with foreign investment accounts in Ottawa, Ontario was up sharply and cash was tighter than ever. Underneath it sat three years of returns filed without the slips that had been mailed to an old address.
What we did for An employee with foreign investment accounts, 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. Every new obligation was set up before it was triggered, not after. That covered registration, remittance frequency and provincial filing.
The result — An employee with foreign investment accounts, Ottawa, Ontario
$115,000 of cash was released from the working capital cycle. The expansion completed with every registration and filing obligation covered from day one.
Case Study 4 · CRA review defended
$86,000 Reassessment Reduced To Nil On Review — Gig-Economy Driver, Victoria
Client: A gig-economy driver · Where: Victoria, British Columbia · Engagement: 8 weeks, fixed fee
Reassessment reduced toNil
Tax protected$86,000
Prior filingsUndisturbed
The situation — A gig-economy driver, Victoria, British Columbia
A review notice arrived at a gig-economy driver in Victoria, British Columbia, covering employee stock option tax reporting for two tax years. The auditor's working position was an adjustment of $86,000. It was driven by RRSP room accumulated over eight years and never used in a high-income year.
What we did for A gig-economy driver, Victoria, British Columbia
Rather than negotiate, we rebuilt the record. 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 submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result — A gig-economy driver, Victoria, British Columbia
The auditor accepted the documented position and closed the review without adjustment, protecting $86,000 and leaving the prior filings undisturbed.
Case Study 5 · Planning that cut the bill
Remuneration Review Saved $25,000 Across Corporate And Personal Returns — First-Year Physician, Winnipeg
Client: A physician in their first year of practice · Where: Winnipeg, Manitoba · Engagement: 5 weeks, fixed fee
Combined saving$25,000
ScopeCorporate + personal
Future yearsNo rework needed
The situation — A physician in their first year of practice, Winnipeg, Manitoba
Nothing was wrong at a physician in their first year of practice in Winnipeg, Manitoba. The filings were on time and accurate. What they were not was planned. Years of small donation receipts claimed one at a time instead of pooled onto a single return had never been reviewed.
What we did for A physician in their first year of practice, Winnipeg, Manitoba
We obtained the signed T2200 and rebuilt the employment-expense claim on the prescribed form with the supporting records attached to the file. We ran the numbers across both the corporate and personal returns, so the saving was real rather than deferred into someone else's hands.
The result — A physician in their first year of practice, Winnipeg, Manitoba
$25,000 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
Case Study 6 · Records and systems rebuilt
Books Rebuilt From Source, $13,500 In Unclaimed Input Tax Found — US-Dividend Investor, Windsor
Client: A taxpayer with US-source dividends · Where: Windsor, Ontario · Engagement: 7 weeks, fixed fee
Unclaimed tax found$13,500
Records rebuilt11 months
ProcessDocumented
The situation — A taxpayer with US-source dividends, Windsor, Ontario
A taxpayer with US-source dividends in Windsor, Ontario could not answer basic questions about its own numbers. Medical expenses claimed on a calendar-year basis when a shifted window was worth far more sat between the bank statements and the ledger.
What we did for A taxpayer with US-source dividends, Windsor, Ontario
We filed the outstanding T1135 disclosures under the voluntary disclosure route before the CRA raised them. We then documented the process so the work does not depend on any one person remembering how it was done.
The result — A taxpayer with US-source dividends, Windsor, Ontario
Records rebuilt and reconciled, $13,500 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
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.
