6 Independent Contractor Tax Return tax and accounting engagements in full — what the client came to us with, what we did, and what it was worth. Each one is specific to independent contractor tax return work, not a general example.
Case Study 1 · Deadline rescue
Filed On Time From A Standing Start, $17,000 Penalty Avoided — Recently Separated Taxpayer, Kitchener
A recently separated taxpayer in Kitchener, Ontario came to us 8 weeks before its filing deadline with foreign accounts that had crossed the T1135 threshold two years earlier. A late filing would have triggered a penalty of roughly $17,000 before interest.
What we did
We worked backwards from the deadline. We reset the medical expense claim window, transferred credits between spouses, and applied the tuition and disability amounts to the return that used them, prioritising the items that actually gated the filing and deferring everything that did not.
The result
The return was filed on time and complete. The $17,000 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Case Study 2 · Missed incentive claimed
$101,000 Credit Claim Filed And Accepted Without Adjustment — Gig-Economy Driver, Edmonton
Client: A gig-economy driver · Where: Edmonton, Alberta · Engagement: 10 weeks, fixed fee
Claim value$101,000
AcceptedWithout adjustment
RepeatableAnnually
The situation
A gig-economy driver in Edmonton, Alberta assumed the credits did not apply to a business its size. Three years of returns filed without the slips that had been mailed to an old address meant they had applied all along.
What we did
We identified the qualifying activity, built the documentation to support it, and 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
$101,000 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 · Records and systems rebuilt
Books Rebuilt From Source, $18,500 In Unclaimed Input Tax Found — Two-Income Household with Rental, Victoria
Client: A two-income household with rental property · Where: Victoria, British Columbia · Engagement: 4 weeks, fixed fee
Unclaimed tax found$18,500
Records rebuilt9 months
ProcessDocumented
The situation
A two-income household with rental property in Victoria, British Columbia could not answer basic questions about its own numbers, because 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
We filed the outstanding T1135 disclosures under the voluntary disclosure route before the CRA raised them, then documented the process so the work does not depend on any one person remembering how it was done.
The result
Records rebuilt and reconciled, $18,500 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 4 · Objection and relief
$68,000 Of Penalties And Interest Cancelled On Relief — First-Time Home Buyer, Winnipeg
Client: A first-time home buyer · Where: Winnipeg, Manitoba · Engagement: 11 weeks, fixed fee
Penalties and interest cancelled$68,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation
An assessment of $68,000 landed at a first-time home buyer in Winnipeg, Manitoba following a desk review. The auditor had not seen the records behind three years of returns filed without the slips that had been mailed to an old address.
What we did
We pulled the full slip history from the CRA record, refiled the affected years by adjustment request, and recovered the credits that had been missed, then set out the legislative basis for the position alongside the documents supporting it.
The result
$68,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 5 · CRA review defended
Audit Defence Closed In 4 Weeks, $57,000 Cleared — Taxpayer with US-Source Dividends, Moncton
Client: A taxpayer with US-source dividends · Where: Moncton, New Brunswick · Engagement: 4 weeks, fixed fee
Proposed tax cleared$57,000
Review duration4 weeks
OutcomeNo change
The situation
A taxpayer with US-source dividends in Moncton, New Brunswick was selected for review after a rental property reported without any capital cost allowance analysis showed up in the CRA's automated matching. The proposed adjustment on independent contractor tax return came to $57,000.
What we did
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 figure in the response traced to a source record the auditor could verify without asking a second question.
The result
The review closed with no change. $57,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 6 · Planning that cut the bill
Remuneration Review Saved $11,500 Across Corporate And Personal Returns — Retiree Drawing From Three, Surrey
Client: A retiree drawing from three sources · Where: Surrey, British Columbia · Engagement: 6 weeks, fixed fee
Combined saving$11,500
ScopeCorporate + personal
Future yearsNo rework needed
The situation
Nothing was wrong at a retiree drawing from three sources in Surrey, British Columbia — the filings were on time and accurate. What they were not was planned. Foreign accounts that had crossed the T1135 threshold two years earlier had never been reviewed.
What we did
We carried the capital loss back against gains reported in the prior three years and generated a refund rather than a carry-forward balance, 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
$11,500 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
Reviewed for the 2025 tax year by Udit Gupta, Certified Tax Accountant. Figures describe representative engagements of this type; outcomes depend on your own facts. Client names and identifying details are omitted for confidentiality.
