6 worked Limited Partnership Tax Filing 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 limited partnership tax filing work, not a specific client's file.
Case Study 1 · Objection and relief
$91,000 Of Penalties And Interest Cancelled On Relief — Family-Staffed Proprietorship, Ottawa
Client: A proprietor whose spouse works in the business · Where: Ottawa, Ontario · Engagement: 8 weeks, fixed fee
Penalties and interest cancelled$91,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — A proprietor whose spouse works in the business, Ottawa, Ontario
An assessment of $91,000 landed at a proprietor whose spouse works in the business in Ottawa, Ontario following a desk review. It turned on business income reported entirely on one spouse’s return despite shared operations. The auditor had not seen the records behind it.
What we did for A proprietor whose spouse works in the business, Ottawa, Ontario
We filed the section 85 election with correct elected amounts and rolled the assets in without a taxable disposition. We then set out the legislative basis for the position alongside the documents supporting it.
The result — A proprietor whose spouse works in the business, Ottawa, Ontario
$91,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 2 · Backlog brought current
$133,000 Of Arbitrary Assessments Vacated After 3 Years — Spousal Retail Partnership, Halifax
Client: A husband-and-wife retail partnership · Where: Halifax, Nova Scotia · Engagement: 8 weeks, fixed fee
Arbitrary tax vacated$133,000
Years brought current3
Account statusCurrent
The situation — A husband-and-wife retail partnership, Halifax, Nova Scotia
3 years of unfiled returns had turned into notional assessments at a husband-and-wife retail partnership in Halifax, Nova Scotia. Underneath lay a partnership that crossed the T5013 threshold two years before anyone noticed. Collections had already started.
What we did for A husband-and-wife retail partnership, Halifax, Nova Scotia
We rewrote the partnership allocation to match how the practice actually operated, effective for the following fiscal year. We then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result — A husband-and-wife retail partnership, Halifax, Nova Scotia
All 3 years were accepted as filed. $133,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 3 years.
Case Study 3 · Missed incentive claimed
Incentive Review Recovered $45,000 Across 6 Open Years — Three-Partner Medical Clinic, Brampton
Client: A three-partner medical clinic · Where: Brampton, Ontario · Engagement: 5 weeks, fixed fee
Recovered$45,000
Open years claimed6
Ongoing trackingIn place
The situation — A three-partner medical clinic, Brampton, Ontario
An incentive review at a three-partner medical clinic in Brampton, Ontario started from a simple question: what has never been claimed? The answer ran to 6 years. It was driven by business income reported entirely on one spouse’s return despite shared operations.
What we did for A three-partner medical clinic, 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. We documented eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result — A three-partner medical clinic, Brampton, Ontario
The credits produced $45,000 across the open years. The tracking now in place means the following year's claim is documented as the work happens rather than reconstructed afterwards.
Case Study 4 · Scaling without breaking
Second-Province Expansion Handled, $131,000 Of Cash Released — Unincorporated Trades Business, Victoria
Client: An unincorporated trades business · Where: Victoria, British Columbia · Engagement: 3 weeks, fixed fee
Cash released$131,000
New registrationsComplete on day one
Compliance gapsNone
The situation — An unincorporated trades business, Victoria, British Columbia
Revenue at an unincorporated trades business in Victoria, British Columbia was up sharply and cash was tighter than ever. Underneath it sat a profit split applied in practice that the written agreement did not support.
What we did for An unincorporated trades business, Victoria, British Columbia
We filed the outstanding T5013 returns with full partner allocations and requested penalty relief on the basis of the first-time nature of the failure. Every new obligation was set up before it was triggered, not after. That covered registration, remittance frequency and provincial filing.
The result — An unincorporated trades business, Victoria, British Columbia
$131,000 of cash was released from the working capital cycle. The expansion completed with every registration and filing obligation covered from day one.
Client: A freelance developer · Where: Kelowna, British Columbia · Engagement: 8 weeks, fixed fee
Overpayment refunded$142,000
Late remittances sinceZero
ScheduleAutomated
The situation — A freelance developer, Kelowna, British Columbia
Remittances at a freelance developer in Kelowna, British Columbia were consistently late by a few days. That was enough to trigger penalties every quarter. Behind it sat three partners operating on a handshake, with no written agreement covering allocations or a departure.
What we did for A freelance developer, Kelowna, British Columbia
We split the shared overhead on a documented basis, so each partner’s reported share carried only the expenses that belonged to it. Then we moved the remittance dates into a scheduled process rather than a monthly decision.
The result — A freelance developer, Kelowna, British Columbia
Penalties stopped from the following remittance onwards, and $142,000 of overpaid instalments was refunded.
Case Study 6 · Deadline rescue
Filed On Time From A Standing Start, $45,000 Penalty Avoided — Food-Truck Proprietorship, Calgary
Client: A food-truck sole proprietorship · Where: Calgary, Alberta · Engagement: 11 weeks, fixed fee
Penalty avoided$45,000
Turnaround11 weeks
FiledOn time
The situation — A food-truck sole proprietorship, Calgary, Alberta
A food-truck sole proprietorship in Calgary, Alberta came to us 11 weeks before its filing deadline. The file came with an incorporation completed without the section 85 election, triggering an unnecessary gain. A late filing would have triggered a penalty of roughly $45,000 before interest.
What we did for A food-truck sole proprietorship, Calgary, Alberta
We worked backwards from the deadline. We drafted the allocation, admission and withdrawal terms into a written agreement before the next partner was admitted. We prioritised the items that actually gated the filing and deferred everything that did not.
The result — A food-truck sole proprietorship, Calgary, Alberta
The return was filed on time and complete. The $45,000 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
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.
