6 worked FATCA Form 8938 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 fatca form 8938 assistance work, not a specific client's file.
Case Study 1 · Cash and remittance control
Instalments Rebased, $18,000 Of Cash Returned To The Business — Non-Resident Landlord, Saskatoon
Client: A non-resident owning Canadian rental property · Where: Saskatoon, Saskatchewan · Engagement: 11 weeks, fixed fee
Cash returned$18,000
Instalment basisCurrent year
ReviewedQuarterly
The situation — A non-resident owning Canadian rental property, Saskatoon, Saskatchewan
A non-resident owning Canadian rental property in Saskatoon, Saskatchewan was paying instalments calculated on a prior year. That year no longer reflected the business. Foreign accounts that had passed the $100,000 T1135 threshold three years earlier was tying up $18,000 of cash.
What we did for A non-resident owning Canadian rental property, Saskatoon, Saskatchewan
We rebased the instalments on the current-year estimate rather than the prior-year default. Alongside that, we filed the outstanding T1135 disclosures through the Voluntary Disclosures Program, which eliminated the penalty exposure entirely.
The result — A non-resident owning Canadian rental property, Saskatoon, Saskatchewan
$18,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 2 · Missed incentive claimed
$68,000 Credit Claim Filed And Accepted Without Adjustment — Cross-Border Contractor, Windsor
Client: A contractor working on both sides of the border · Where: Windsor, Ontario · Engagement: 4 weeks, fixed fee
Claim value$68,000
AcceptedWithout adjustment
RepeatableAnnually
The situation — A contractor working on both sides of the border, Windsor, Ontario
A contractor working on both sides of the border in Windsor, Ontario assumed the credits did not apply to a business its size. A departure year filed as a normal resident return with no deemed disposition reported meant they had applied all along.
What we did for A contractor working on both sides of the border, Windsor, Ontario
We identified the qualifying activity and built the documentation to support it. Then we applied the treaty rate to the dividend withholding, filed the NR4 return, and remitted the shortfall before the CRA assessed the payer for it.
The result — A contractor working on both sides of the border, Windsor, Ontario
$68,000 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
Case Study 3 · Sale and succession
Share Sale Restructured, $410,000 Less Tax On Closing — US Retirement Account Holder, Vancouver
Client: A dual citizen with a US retirement account · Where: Vancouver, British Columbia · Engagement: 4 weeks, fixed fee
Tax saved on closing$410,000
PriceAs agreed
Post-closing adjustmentsNone
The situation — A dual citizen with a US retirement account, Vancouver, British Columbia
A dual citizen with a US retirement account in Vancouver, British Columbia was preparing to sell. Due diligence surfaced a single shareholder holding every share, with no room to multiply the exemption. That would have reduced the price or killed the deal outright.
What we did for A dual citizen with a US retirement account, Vancouver, British Columbia
We cleaned up the historical file. We filed the section 216 election with the supporting rental statements and recovered the excess withholding as a refund. Then we prepared the due-diligence package the buyer's advisers actually asked for.
The result — A dual citizen with a US retirement account, Vancouver, British Columbia
The deal closed at the agreed price. $410,000 of tax was saved against the structure originally proposed, with no post-closing adjustment.
Case Study 4 · Deadline rescue
$121,000 Late-Filing Penalty Cancelled On Relief Application — Florida Property Owner, London
Client: A family with a Florida vacation property · Where: London, Ontario · Engagement: 10 weeks, fixed fee
Penalty cancelled$121,000
Relief applicationGranted
ReturnAccepted as filed
The situation — A family with a Florida vacation property, London, Ontario
A family with a Florida vacation property in London, Ontario had already missed one deadline and was about to miss a second. Behind it sat a US LLC taxed as a corporation in Canada, producing double tax on the same income. A penalty of $121,000 was accruing.
What we did for A family with a Florida vacation property, London, Ontario
We split the work into what had to happen before the deadline and what could follow it. Then we aligned the Canadian and US reporting of the same income so the foreign tax credit claim carried support on both returns.
The result — A family with a Florida vacation property, London, Ontario
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $121,000 of the penalty already assessed on the earlier year.
Case Study 5 · Scaling without breaking
Growth Handled Without A Missed Filing, $104,000 Freed — Mid-Year Emigrant, Moncton
Client: An emigrant who left Canada mid-year · Where: Moncton, New Brunswick · Engagement: 10 weeks, fixed fee
Cash freed$104,000
Compliance failuresNone
ReportingMonthly
The situation — An emigrant who left Canada mid-year, Moncton, New Brunswick
An emigrant who left Canada mid-year in Moncton, New Brunswick was opening in a second province. That meant different filing obligations and a different payroll regime. US tax paid but no foreign tax credit claimed on the Canadian return already sat in the file.
What we did for An emigrant who left Canada mid-year, Moncton, New Brunswick
We registered the payer for a non-resident withholding account, remitted the Regulation 105 amounts due, and applied for waivers covering the rest of the contract. 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 — An emigrant who left Canada mid-year, Moncton, New Brunswick
Growth was absorbed without a compliance failure. $104,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 6 · CRA review defended
$87,000 Reassessment Reduced To Nil On Review — US Pension Recipient, Mississauga
Client: A Canadian resident receiving US pension income · Where: Mississauga, Ontario · Engagement: 11 weeks, fixed fee
Reassessment reduced toNil
Tax protected$87,000
Prior filingsUndisturbed
The situation — A Canadian resident receiving US pension income, Mississauga, Ontario
A review notice arrived at a Canadian resident receiving US pension income in Mississauga, Ontario, covering FATCA form 8938 assistance for two tax years. The auditor's working position was an adjustment of $87,000. It was driven by winters spent in the United States with the day count kept casually and no residency position documented anywhere.
What we did for A Canadian resident receiving US pension income, Mississauga, Ontario
Rather than negotiate, we rebuilt the record. We restructured the US holding so the Canadian and US characterisations aligned, ending the double taxation going forward. We then submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result — A Canadian resident receiving US pension income, Mississauga, Ontario
The auditor accepted the documented position and closed the review without adjustment, protecting $87,000 and leaving the prior filings undisturbed.
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.
