6 NR4 Information 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 nr4 information return work, not a general example.
Case Study 1 · Sale and succession
$365,000 Sheltered By The Lifetime Capital Gains Exemption — Retail Chain Across Two, Burnaby
Client: A retail chain across two provinces · Where: Burnaby, British Columbia · Engagement: 5 weeks, fixed fee
Gain sheltered$365,000
ClosingOn schedule
Share qualificationMet
The situation
A retail chain across two provinces in Burnaby, British Columbia had an offer on the table and 10 months to close. The shares did not qualify for the capital gains exemption, and a shareholder loan balance that would have been picked up as income on closing was part of the reason.
What we did
We purified the corporation so the shares met the qualifying tests, then reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s well ahead of the closing date.
The result
The sale closed on schedule with $365,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 2 · Backlog brought current
Collections Halted And $31,000 Cut From A 4-Year Backlog — Growing Tech Team, Moncton
Client: A growing tech team with stock options · Where: Moncton, New Brunswick · Engagement: 9 weeks, fixed fee
Balance reduced by$31,000
Backlog cleared4 years
CollectionsHalted
The situation
By the time a growing tech team with stock options in Moncton, New Brunswick called, 4 years were outstanding and the CRA had assessed on estimates. Underneath it sat T4s that did not agree to the payroll register or the general ledger.
What we did
We reconstructed the records year by year and reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips. Each filing replaced an arbitrary assessment with a real one.
The result
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $31,000, and a relief application addressed part of the accumulated interest.
Case Study 3 · Structure rebuilt
Corporate Structure Rebuilt For $42,000 Of Annual Savings — Security Services Contractor, Vancouver
Client: A security services contractor · Where: Vancouver, British Columbia · Engagement: 9 weeks, fixed fee
Saving per year$42,000
DocumentationComplete
Transfer basisRollover
The situation
The structure at a security services contractor in Vancouver, British Columbia had been set up years earlier for a business that no longer existed, and long-term contractors who met every test for employment had become expensive.
What we did
We moved the account to the correct remitter frequency, caught up the arrears, and filed a taxpayer relief request that cancelled the bulk of the penalty. The reorganisation used the rollover provisions rather than a taxable transfer, so no tax fell due on the restructuring itself.
The result
$42,000 of annual saving, achieved on a tax-deferred basis. The minute book, elections and valuations are all in the file.
Case Study 4 · Objection and relief
$100,000 Of Penalties And Interest Cancelled On Relief — Landscaping Company with Seasonal, Halifax
Client: A landscaping company with seasonal staff · Where: Halifax, Nova Scotia · Engagement: 3 weeks, fixed fee
Penalties and interest cancelled$100,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation
An assessment of $100,000 landed at a landscaping company with seasonal staff in Halifax, Nova Scotia following a desk review. The auditor had not seen the records behind a director facing a personal assessment for unremitted source deductions.
What we did
We reviewed each contractor against the CRA’s control and integration tests, converted those who met the employment tests, and priced the transition before it was forced by a ruling, then set out the legislative basis for the position alongside the documents supporting it.
The result
$100,000 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 · Deadline rescue
$117,000 Late-Filing Penalty Cancelled On Relief Application — Dental Practice, Red Deer
Client: A dental practice · Where: Red Deer, Alberta · Engagement: 6 weeks, fixed fee
Penalty cancelled$117,000
Relief applicationGranted
ReturnAccepted as filed
The situation
A dental practice in Red Deer, Alberta had already missed one deadline and was about to miss a second. Behind it sat company vehicles used personally with no logbook and no taxable benefit reported, and a penalty of $117,000 was accruing.
What we did
We split the work into what had to happen before the deadline and what could follow it, then reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s.
The result
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $117,000 of the penalty already assessed on the earlier year.
Case Study 6 · Records and systems rebuilt
9 Months Reconciled And $6,000 Of Input Tax Recovered — Logistics Operator with Drivers, Lethbridge
Client: A logistics operator with drivers in three provinces · Where: Lethbridge, Alberta · Engagement: 10 weeks, fixed fee
Months reconciled9
Input tax recovered$6,000
Close time9 days
The situation
A logistics operator with drivers in three provinces in Lethbridge, Alberta was carrying remittances still going out monthly after the business had moved to the accelerated threshold. Nothing reconciled, and every filing started with 9 months of cleanup.
What we did
We rebuilt from source rather than correcting on top of the existing file. We reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips, then set the routine that keeps it clean.
The result
9 months reconciled to the bank. The close now takes 9 days, and $6,000 of previously unclaimable input tax was recovered in the process.
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.
