6 worked Freelancer 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 freelancer tax return work, not a specific client's file.
Case Study 1 · Planning that cut the bill
Remuneration Review Saved $28,500 Across Corporate And Personal Returns — Farming Partnership, Burnaby
Client: A farming partnership · Where: Burnaby, British Columbia · Engagement: 5 weeks, fixed fee
Combined saving$28,500
ScopeCorporate + personal
Future yearsNo rework needed
The situation — A farming partnership, Burnaby, British Columbia
Nothing was wrong at a farming partnership in Burnaby, British Columbia — the filings were on time and accurate. What they were not was planned. A profit split applied in practice that the written agreement did not support had never been reviewed.
What we did for A farming partnership, Burnaby, British Columbia
We rewrote the partnership allocation to match how the practice actually operated, effective for the following fiscal year, and 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 farming partnership, Burnaby, British Columbia
$28,500 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
Case Study 2 · Objection and relief
Desk-Review Assessment Of $53,000 Vacated — Sole Proprietor Consultant, Barrie
Client: A sole proprietor consultant · Where: Barrie, Ontario · Engagement: 6 weeks, fixed fee
Assessment vacated$53,000
Supporting recordsNow on file
AccountCleared
The situation — A sole proprietor consultant, Barrie, Ontario
A sole proprietor consultant in Barrie, Ontario was carrying $53,000 of penalties and interest arising from a partner taxed on an allocation in a year they had drawn nothing at all, much of it accumulated during a period the CRA itself had delayed.
What we did for A sole proprietor consultant, Barrie, Ontario
We split the shared overhead on a documented basis, so each partner’s reported share carried only the expenses that belonged to it and framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result — A sole proprietor consultant, Barrie, Ontario
The assessment was vacated. $53,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Case Study 3 · Missed incentive claimed
$106,000 In Credits Claimed That Prior Filings Had Missed — Two-Partner Architecture Practice, Edmonton
Client: A two-partner architecture practice · Where: Edmonton, Alberta · Engagement: 4 weeks, fixed fee
Credits claimed$106,000
Years adjusted5
Review outcomeNo adjustment
The situation — A two-partner architecture practice, Edmonton, Alberta
A two-partner architecture practice in Edmonton, Alberta had been filing for 5 years without ever claiming the incentives its activity qualified for. Behind that sat an incorporation completed without the section 85 election, triggering an unnecessary gain.
What we did for A two-partner architecture practice, Edmonton, Alberta
We tested each activity against the eligibility criteria rather than the description on the invoice, then reconciled each partner’s allocation, capital account and drawings, so what was reported for tax matched the agreement instead of the cash taken.
The result — A two-partner architecture practice, Edmonton, Alberta
$106,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 4 · Cash and remittance control
$47,000 Of Working Capital Freed From The Tax Cycle — Limited Partnership, Brampton
Client: A limited partnership with passive investors · Where: Brampton, Ontario · Engagement: 9 weeks, fixed fee
Working capital freed$47,000
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation — A limited partnership with passive investors, Brampton, Ontario
A limited partnership with passive investors in Brampton, Ontario was profitable on paper and short of cash every month. Business income reported entirely on one spouse’s return despite shared operations explained most of the gap.
What we did for A limited partnership with passive investors, Brampton, Ontario
We restructured the draw policy so no partner’s adjusted cost base went negative again, and reported the deemed gain correctly for the year it arose and built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result — A limited partnership with passive investors, Brampton, Ontario
$47,000 was released back into working capital. Remittances have been on time every period since, and the forecast shows the tax outflow before it lands.
Case Study 5 · Structure rebuilt
Corporate Structure Rebuilt For $45,000 Of Annual Savings — Incorporating Proprietor, Kelowna
Client: A proprietor preparing to incorporate · Where: Kelowna, British Columbia · Engagement: 11 weeks, fixed fee
Saving per year$45,000
DocumentationComplete
Transfer basisRollover
The situation — A proprietor preparing to incorporate, Kelowna, British Columbia
The structure at a proprietor preparing to incorporate in Kelowna, British Columbia had been set up years earlier for a business that no longer existed, and a proprietor planning around a September year-end that the rules did not permit had become expensive.
What we did for A proprietor preparing to incorporate, Kelowna, British Columbia
We drafted the allocation, admission and withdrawal terms into a written agreement before the next partner was admitted. The reorganisation used the rollover provisions rather than a taxable transfer, so no tax fell due on the restructuring itself.
The result — A proprietor preparing to incorporate, Kelowna, British Columbia
$45,000 of annual saving, achieved on a tax-deferred basis. The minute book, elections and valuations are all in the file.
Case Study 6 · CRA review defended
$23,500 Reassessment Reduced To Nil On Review — Corporate-Partner Partnership, Ottawa
Client: A partnership with a corporate partner · Where: Ottawa, Ontario · Engagement: 3 weeks, fixed fee
Reassessment reduced toNil
Tax protected$23,500
Prior filingsUndisturbed
The situation — A partnership with a corporate partner, Ottawa, Ontario
A review notice arrived at a partnership with a corporate partner in Ottawa, Ontario covering freelancer tax return for two tax years. The auditor's working position was an adjustment of $23,500, driven by partner draws that had pushed one partner’s adjusted cost base negative.
What we did for A partnership with a corporate partner, Ottawa, Ontario
Rather than negotiate, we rebuilt the record. We filed the section 85 election with correct elected amounts and rolled the assets in without a taxable disposition and submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result — A partnership with a corporate partner, Ottawa, Ontario
The auditor accepted the documented position and closed the review without adjustment, protecting $23,500 and leaving the prior filings undisturbed.
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.
