6 worked Employment Expense 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 employment expense tax return work, not a specific client's file.
Case Study 1 · Structure rebuilt
Holding Structure Added, $23,000 Saved Annually — Commissioned Salesperson, Toronto
The situation — A commissioned salesperson, Toronto, Ontario
The structure at a commissioned salesperson in Toronto, Ontario needed fixing. The file was carrying years of small donation receipts claimed one at a time instead of pooled onto a single return. Every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did for A commissioned salesperson, Toronto, Ontario
We worked with the client's lawyer. Together, we obtained the signed T2200 and rebuilt the employment-expense claim on the prescribed form with the supporting records attached to the file. We also prepared the elections, resolutions and valuations the structure needed to stand up.
The result — A commissioned salesperson, Toronto, Ontario
The structure now matches the business. Annual saving of $23,000, and the reorganisation itself was tax-neutral.
Case Study 2 · Scaling without breaking
Second-Province Expansion Handled, $17,500 Of Cash Released — Student Filer, Windsor
Client: A full-time student with tuition credits and part-time earnings · Where: Windsor, Ontario · Engagement: 5 weeks, fixed fee
Cash released$17,500
New registrationsComplete on day one
Compliance gapsNone
The situation — A full-time student with tuition credits and part-time earnings, Windsor, Ontario
Revenue at a full-time student with tuition credits and part-time earnings in Windsor, Ontario was up sharply and cash was tighter than ever. Underneath it sat employment expenses claimed with no signed T2200 from the employer to support them.
What we did for A full-time student with tuition credits and part-time earnings, Windsor, 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. Every new obligation was set up before it was triggered, not after. That covered registration, remittance frequency and provincial filing.
The result — A full-time student with tuition credits and part-time earnings, Windsor, Ontario
$17,500 of cash was released from the working capital cycle. The expansion completed with every registration and filing obligation covered from day one.
Client: A retiree drawing from three sources · Where: Burnaby, British Columbia · Engagement: 11 weeks, fixed fee
Overpayment refunded$138,000
Late remittances sinceZero
ScheduleAutomated
The situation — A retiree drawing from three sources, Burnaby, British Columbia
Remittances at a retiree drawing from three sources in Burnaby, British Columbia were consistently late by a few days. That was enough to trigger penalties every quarter. Behind it sat three years of returns filed without the slips that had been mailed to an old address.
What we did for A retiree drawing from three sources, Burnaby, British Columbia
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. Then we moved the remittance dates into a scheduled process rather than a monthly decision.
The result — A retiree drawing from three sources, Burnaby, British Columbia
Penalties stopped from the following remittance onwards, and $138,000 of overpaid instalments was refunded.
Case Study 4 · Backlog brought current
6 Years Filed, $127,000 Removed From The Assessed Balance — Pension-Splitting Retiree, Winnipeg
Client: A retiree splitting eligible pension income with a spouse · Where: Winnipeg, Manitoba · Engagement: 10 weeks, fixed fee
Years filed6
Assessed balance removed$127,000
CollectionsStopped
The situation — A retiree splitting eligible pension income with a spouse, Winnipeg, Manitoba
A retiree splitting eligible pension income with a spouse in Winnipeg, Manitoba had not filed for 6 years. The CRA had issued arbitrary assessments. The business was carrying medical expenses claimed on a calendar-year basis when a shifted window was worth far more. That came on top of a growing interest balance.
What we did for A retiree splitting eligible pension income with a spouse, Winnipeg, Manitoba
We started with the oldest year and worked forward so each year's closing balances fed the next. We recalculated the instalments on the current year’s expected income rather than the prior year’s, which stopped the instalment interest from growing. We filed the years in sequence rather than all at once.
The result — A retiree splitting eligible pension income with a spouse, Winnipeg, Manitoba
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $127,000 of the estimated balance came off, with a payment arrangement covering the rest.
Case Study 5 · Planning that cut the bill
$73,000 Saved By Correcting What Prior Filings Had Missed — Employee with Foreign Accounts, Calgary
Client: An employee with foreign investment accounts · Where: Calgary, Alberta · Engagement: 3 weeks, fixed fee
Saving identified$73,000
RecurringYes
Positions documentedAll
The situation — An employee with foreign investment accounts, Calgary, Alberta
An employee with foreign investment accounts in Calgary, Alberta asked for a second opinion on employment expense tax return. That followed three years of rising tax. The review found a rental property reported without any capital cost allowance analysis.
What we did for An employee with foreign investment accounts, Calgary, Alberta
We built the comparison first: current structure against two alternatives. 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 result — An employee with foreign investment accounts, Calgary, Alberta
First-year saving of $73,000, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 6 · Records and systems rebuilt
Books Rebuilt From Source, $15,500 In Unclaimed Input Tax Found — Self-Employed Consultant, Moncton
Client: A self-employed consultant · Where: Moncton, New Brunswick · Engagement: 6 weeks, fixed fee
Unclaimed tax found$15,500
Records rebuilt13 months
ProcessDocumented
The situation — A self-employed consultant, Moncton, New Brunswick
A self-employed consultant in Moncton, New Brunswick could not answer basic questions about its own numbers. RRSP room accumulated over eight years and never used in a high-income year sat between the bank statements and the ledger.
What we did for A self-employed consultant, Moncton, New Brunswick
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 then documented the process so the work does not depend on any one person remembering how it was done.
The result — A self-employed consultant, Moncton, New Brunswick
Records rebuilt and reconciled, $15,500 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.
