6 worked NR74 Residency Status Assistance 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 nr74 residency status assistance work, not a specific client's file.
Case Study 1 · Cash and remittance control
$69,000 Of Working Capital Freed From The Tax Cycle — Newcomer with Foreign Property, Saskatoon
The situation — A newcomer holding foreign property, Saskatoon, Saskatchewan
A newcomer holding foreign property in Saskatoon, Saskatchewan was profitable on paper and short of cash every month. A departure year filed as an ordinary resident return, with no deemed disposition reported and no list of the properties owned on the departure date explained most of the gap.
What we did for A newcomer holding foreign property, Saskatoon, Saskatchewan
We reported the deemed disposition on the return for the year residency ended. We elected to defer the tax against acceptable security, so nothing was payable until the property was actually sold. We also built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result — A newcomer holding foreign property, Saskatoon, Saskatchewan
$69,000 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 2 · Records and systems rebuilt
33 Months Reconciled And $16,000 Of Input Tax Recovered — Long-Stay Visitor, Winnipeg
Client: A long-stay visitor to Canada · Where: Winnipeg, Manitoba · Engagement: 10 weeks, fixed fee
Months reconciled33
Input tax recovered$16,000
Close time7 days
The situation — A long-stay visitor to Canada, Winnipeg, Manitoba
Nothing reconciled at a long-stay visitor to Canada in Winnipeg, Manitoba. Every filing started with 33 months of cleanup. The file was carrying an arrival year reported from January rather than from the date residency actually began.
What we did for A long-stay visitor to Canada, Winnipeg, Manitoba
We rebuilt from source rather than correcting on top of the existing file. We corrected the foreign property reporting from the first year it was actually required, using the voluntary route before the CRA raised it. Then we set the routine that keeps it clean.
The result — A long-stay visitor to Canada, Winnipeg, Manitoba
33 months reconciled to the bank. The close now takes 7 days, and $16,000 of previously unclaimable input tax was recovered in the process.
Case Study 3 · Backlog brought current
7 Years Filed, $130,000 Removed From The Assessed Balance — Non-Resident Performer, Vancouver
Client: A non-resident performer working in Canada · Where: Vancouver, British Columbia · Engagement: 11 weeks, fixed fee
Years filed7
Assessed balance removed$130,000
CollectionsStopped
The situation — A non-resident performer working in Canada, Vancouver, British Columbia
A non-resident performer working in Canada in Vancouver, British Columbia had not filed for 7 years. The CRA had issued arbitrary assessments. The business was carrying rent remitted abroad in full by a Canadian agent who had never been told the withholding was their obligation. That came on top of a growing interest balance.
What we did for A non-resident performer working in Canada, Vancouver, British Columbia
We started with the oldest year and worked forward so each year's closing balances fed the next. We put an NR6 undertaking in place with the Canadian agent so the following year was withheld on estimated net rent rather than on gross. We filed the years in sequence rather than all at once.
The result — A non-resident performer working in Canada, Vancouver, British Columbia
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $130,000 of the estimated balance came off, with a payment arrangement covering the rest.
Case Study 4 · Cross-border exposure resolved
$124,000 Of Excess Withholding Refunded On Election — Dual-Resident Professional, Guelph
Client: A dual-resident professional · Where: Guelph, Ontario · Engagement: 9 weeks, fixed fee
Withholding refunded$124,000
ElectionFiled and accepted
Cross-border reportingConsistent
The situation — A dual-resident professional, Guelph, Ontario
A dual-resident professional in Guelph, Ontario was paying tax in two countries on one stream of income. A T1135 filed for the year of arrival, when none was required, and none filed for the years that followed had never been reviewed against the treaty.
What we did for A dual-resident professional, Guelph, Ontario
We filed the notification of disposition and obtained the clearance certificate. We released the proceeds the purchaser had been holding against a withholding calculated on the gross price. We also coordinated the timing so the credit claimed in Canada matched the tax actually paid abroad.
The result — A dual-resident professional, Guelph, Ontario
$124,000 of excess withholding was refunded and the exposure closed. Both sides of the border now report consistently, which is what keeps the credit claimable.
Case Study 5 · Planning that cut the bill
$48,000 Cut From The Annual Tax Bill — First-Year Resident, Windsor
Client: A first-year Canadian resident · Where: Windsor, Ontario · Engagement: 11 weeks, fixed fee
First-year saving$48,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation — A first-year Canadian resident, Windsor, Ontario
A first-year Canadian resident in Windsor, Ontario was compliant but paying more than it needed to. The prior year had been filed correctly. It still left more than half the year spent in Canada on visits while the returns continued to be filed as a non-resident on the table.
What we did for A first-year Canadian resident, Windsor, Ontario
We modelled the current position against the alternatives before changing anything. Then we mapped the residential ties on each side of the departure date and fixed the date residency actually ceased. We filed the emigrant return with the deemed disposition and the property list built on that date.
The result — A first-year Canadian resident, Windsor, Ontario
The change saved $48,000 in the first year and repeats annually. Nothing about the filings became more aggressive. The position is simply the one the rules already allowed.
Case Study 6 · Objection and relief
Desk-Review Assessment Of $61,000 Vacated — Inbound Corporate Assignee, Regina
The situation — An inbound corporate assignee, Regina, Saskatchewan
An inbound corporate assignee in Regina, Saskatchewan was carrying $61,000 of penalties and interest. The charges arose from registered plan withdrawals taken after departure at the flat non-resident rate with no election ever considered. Much of that amount accumulated during a period the CRA itself had delayed.
What we did for An inbound corporate assignee, Regina, Saskatchewan
We split the year at the residency date and prorated the personal credits to the days of residency. We refiled the years that had claimed the full amounts. We framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result — An inbound corporate assignee, Regina, Saskatchewan
The assessment was vacated. $61,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
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.
