Family and Caregiver Tax Credit Review Case Studies
6 worked Family and Caregiver Tax Credit Review 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 family and caregiver tax credit review work, not a specific client's file.
Case Study 1 · Planning that cut the bill
$71,000 Saved By Correcting What Prior Filings Had Missed — Multi-Source Retiree, Barrie
Client: A retiree drawing from three sources · Where: Barrie, Ontario · Engagement: 7 weeks, fixed fee
Saving identified$71,000
RecurringYes
Positions documentedAll
The situation — A retiree drawing from three sources, Barrie, Ontario
A retiree drawing from three sources in Barrie, Ontario asked for a second opinion on family and caregiver tax credit review. That followed three years of rising tax. The review found a rental property reported without any capital cost allowance analysis.
What we did for A retiree drawing from three sources, Barrie, Ontario
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 — A retiree drawing from three sources, Barrie, Ontario
First-year saving of $71,000, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 2 · CRA review defended
$138,000 Reassessment Reduced To Nil On Review — Mid-Year Interprovincial Mover, London
Client: An employee who moved provinces mid-year · Where: London, Ontario · Engagement: 3 weeks, fixed fee
Reassessment reduced toNil
Tax protected$138,000
Prior filingsUndisturbed
The situation — An employee who moved provinces mid-year, London, Ontario
A review notice arrived at an employee who moved provinces mid-year in London, Ontario, covering family and caregiver tax credit review for two tax years. The auditor's working position was an adjustment of $138,000. It was driven by a home sale never reported on the basis that the gain was exempt anyway.
What we did for An employee who moved provinces mid-year, London, Ontario
Rather than negotiate, we rebuilt the record. 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 then submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result — An employee who moved provinces mid-year, London, Ontario
The auditor accepted the documented position and closed the review without adjustment, protecting $138,000 and leaving the prior filings undisturbed.
Case Study 3 · Scaling without breaking
Growth Handled Without A Missed Filing, $48,000 Freed — First-Year Physician, Vancouver
Client: A physician in their first year of practice · Where: Vancouver, British Columbia · Engagement: 4 weeks, fixed fee
Cash freed$48,000
Compliance failuresNone
ReportingMonthly
The situation — A physician in their first year of practice, Vancouver, British Columbia
A physician in their first year of practice in Vancouver, British Columbia was opening in a second province. That meant different filing obligations and a different payroll regime. Three years of returns filed without the slips that had been mailed to an old address already sat in the file.
What we did for A physician in their first year of practice, Vancouver, 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. We then put monthly reporting in place. That let the owner see the cash effect of growth while there was still time to act on it.
The result — A physician in their first year of practice, Vancouver, British Columbia
Growth was absorbed without a compliance failure. $48,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 4 · Missed incentive claimed
$46,000 Credit Claim Filed And Accepted Without Adjustment — Recently Separated Taxpayer, Victoria
Client: A recently separated taxpayer · Where: Victoria, British Columbia · Engagement: 9 weeks, fixed fee
Claim value$46,000
AcceptedWithout adjustment
RepeatableAnnually
The situation — A recently separated taxpayer, Victoria, British Columbia
A recently separated taxpayer in Victoria, British Columbia assumed the credits did not apply to a business its size. RRSP room accumulated over eight years and never used in a high-income year meant they had applied all along.
What we did for A recently separated taxpayer, Victoria, British Columbia
We identified the qualifying activity and built the documentation to support it. Then we reset the medical expense claim window, transferred credits between spouses, and applied the tuition and disability amounts to the return that used them.
The result — A recently separated taxpayer, Victoria, British Columbia
$46,000 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
Case Study 5 · Backlog brought current
Collections Halted And $26,500 Cut From A 5-Year Backlog — Pension-Splitting Retiree, Surrey
Client: A retiree splitting eligible pension income with a spouse · Where: Surrey, British Columbia · Engagement: 10 weeks, fixed fee
Balance reduced by$26,500
Backlog cleared5 years
CollectionsHalted
The situation — A retiree splitting eligible pension income with a spouse, Surrey, British Columbia
By the time a retiree splitting eligible pension income with a spouse in Surrey, British Columbia called, 5 years were outstanding. The CRA had assessed on estimates. Underneath 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, Surrey, British Columbia
We reconstructed the records year by year. We obtained the signed T2200 and rebuilt the employment-expense claim on the prescribed form with the supporting records attached to the file. Each filing replaced an arbitrary assessment with a real one.
The result — A retiree splitting eligible pension income with a spouse, Surrey, British Columbia
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $26,500, and a relief application addressed part of the accumulated interest.
Case Study 6 · Objection and relief
Notice Of Objection Allowed In Full, $61,000 Reversed — Gig-Economy Driver, Lethbridge
Client: A gig-economy driver · Where: Lethbridge, Alberta · Engagement: 5 weeks, fixed fee
Amount reversed$61,000
ObjectionAllowed in full
Account balanceNil
The situation — A gig-economy driver, Lethbridge, Alberta
A gig-economy driver in Lethbridge, Alberta had been reassessed for $61,000. 12 days were left on the objection deadline. The reassessment rested on medical expenses claimed on a calendar-year basis when a shifted window was worth far more.
What we did for A gig-economy driver, Lethbridge, Alberta
We filed the objection inside the deadline with a complete submission rather than a placeholder. Alongside it, we filed the outstanding T1135 disclosures under the voluntary disclosure route before the CRA raised them.
The result — A gig-economy driver, Lethbridge, Alberta
The appeals officer allowed the objection in full. $61,000 was reversed and the account returned to a nil balance.
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.
