6 worked Investment Income 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 investment income tax return work, not a specific client's file.
Case Study 1 · Cash and remittance control
Instalments Rebased, $41,000 Of Cash Returned To The Business — Pension-Splitting Retiree, Saskatoon
Client: A retiree splitting eligible pension income with a spouse · Where: Saskatoon, Saskatchewan · Engagement: 5 weeks, fixed fee
Cash returned$41,000
Instalment basisCurrent year
ReviewedQuarterly
The situation — A retiree splitting eligible pension income with a spouse, Saskatoon, Saskatchewan
A retiree splitting eligible pension income with a spouse in Saskatoon, Saskatchewan was paying instalments calculated on a prior year. That year no longer reflected the business. Three years of returns filed without the slips that had been mailed to an old address was tying up $41,000 of cash.
What we did for A retiree splitting eligible pension income with a spouse, Saskatoon, Saskatchewan
We rebased the instalments on the current-year estimate rather than the prior-year default. Alongside that, 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.
The result — A retiree splitting eligible pension income with a spouse, Saskatoon, Saskatchewan
$41,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Client: A first-time home buyer · Where: Windsor, Ontario · Engagement: 7 weeks, fixed fee
Annual saving$71,000
ReorganisationTax-neutral
StructureMatches operations
The situation — A first-time home buyer, Windsor, Ontario
The structure at a first-time home buyer in Windsor, Ontario needed fixing. The file was carrying foreign accounts that had crossed the T1135 threshold two years earlier. Every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did for A first-time home buyer, Windsor, 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 first-time home buyer, Windsor, Ontario
The structure now matches the business. Annual saving of $71,000, and the reorganisation itself was tax-neutral.
Case Study 3 · Backlog brought current
$144,000 Of Arbitrary Assessments Vacated After 5 Years — Mid-Year Interprovincial Mover, Vancouver
Client: An employee who moved provinces mid-year · Where: Vancouver, British Columbia · Engagement: 8 weeks, fixed fee
Arbitrary tax vacated$144,000
Years brought current5
Account statusCurrent
The situation — An employee who moved provinces mid-year, Vancouver, British Columbia
5 years of unfiled returns had turned into notional assessments at an employee who moved provinces mid-year in Vancouver, British Columbia. Underneath lay medical expenses claimed on a calendar-year basis when a shifted window was worth far more. Collections had already started.
What we did for An employee who moved provinces mid-year, 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 filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result — An employee who moved provinces mid-year, Vancouver, British Columbia
All 5 years were accepted as filed. $144,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 5 years.
Case Study 4 · Scaling without breaking
Second-Province Expansion Handled, $23,500 Of Cash Released — Employee with Foreign Accounts, London
Client: An employee with foreign investment accounts · Where: London, Ontario · Engagement: 11 weeks, fixed fee
Cash released$23,500
New registrationsComplete on day one
Compliance gapsNone
The situation — An employee with foreign investment accounts, London, Ontario
Revenue at an employee with foreign investment accounts in London, Ontario was up sharply and cash was tighter than ever. Underneath it sat a home sale never reported on the basis that the gain was exempt anyway.
What we did for An employee with foreign investment accounts, London, Ontario
We carried the capital loss back against gains reported in the prior three years and generated a refund rather than a carry-forward balance. Every new obligation was set up before it was triggered, not after. That covered registration, remittance frequency and provincial filing.
The result — An employee with foreign investment accounts, London, Ontario
$23,500 of cash was released from the working capital cycle. The expansion completed with every registration and filing obligation covered from day one.
Case Study 5 · Planning that cut the bill
Remuneration Review Saved $19,500 Across Corporate And Personal Returns — Self-Employed Consultant, Moncton
Client: A self-employed consultant · Where: Moncton, New Brunswick · Engagement: 8 weeks, fixed fee
Combined saving$19,500
ScopeCorporate + personal
Future yearsNo rework needed
The situation — A self-employed consultant, Moncton, New Brunswick
Nothing was wrong at a self-employed consultant in Moncton, New Brunswick. The filings were on time and accurate. What they were not was planned. A rental property reported without any capital cost allowance analysis had never been reviewed.
What we did for A self-employed consultant, Moncton, New Brunswick
We reset the medical expense claim window, transferred credits between spouses, and applied the tuition and disability amounts to the return that used them. We 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 self-employed consultant, Moncton, New Brunswick
$19,500 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
The situation — A gig-economy driver, Mississauga, Ontario
A gig-economy driver in Mississauga, Ontario was selected for review. Years of small donation receipts claimed one at a time instead of pooled onto a single return had shown up in the CRA's automated matching. The proposed adjustment on investment income tax return came to $95,000.
What we did for A gig-economy driver, Mississauga, Ontario
We recalculated the instalments on the current year’s expected income rather than the prior year’s, which stopped the instalment interest from growing. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result — A gig-economy driver, Mississauga, Ontario
The review closed with no change. $95,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
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.
