6 worked Past-Due Personal Tax Returns 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 past-due personal tax returns work, not a specific client's file.
Case Study 1 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $21,500 Saved Each Year — Pension-Splitting Retiree, Surrey
Client: A retiree splitting eligible pension income with a spouse · Where: Surrey, British Columbia · Engagement: 8 weeks, fixed fee
Annual saving$21,500
Tax on reorganisationDeferred
Elections filedOn time
The situation — A retiree splitting eligible pension income with a spouse, Surrey, British Columbia
A retiree splitting eligible pension income with a spouse in Surrey, British Columbia had outgrown the structure it started with. Years of small donation receipts claimed one at a time instead of pooled onto a single return was the immediate problem. The longer-term one was that the structure blocked the next step.
What we did for A retiree splitting eligible pension income with a spouse, Surrey, British Columbia
We mapped the current structure and modelled the target. Then we obtained the signed T2200 and rebuilt the employment-expense claim on the prescribed form with the supporting records attached to the file. The tax-deferred elections were filed on time and the supporting valuations documented.
The result — A retiree splitting eligible pension income with a spouse, Surrey, British Columbia
The reorganisation completed without triggering tax, and the new structure saves approximately $21,500 a year while removing the exposure the old one carried.
Case Study 2 · Deadline rescue
3-Week Turnaround Beat The Deadline And Saved $42,000 — Multi-Source Retiree, Ottawa
Client: A retiree drawing from three sources · Where: Ottawa, Ontario · Engagement: 3 weeks, fixed fee
Late-filing penalty avoided$42,000
Filed with15 days to spare
Next yearPapers ready
The situation — A retiree drawing from three sources, Ottawa, Ontario
A retiree drawing from three sources in Ottawa, Ontario was weeks away from the deadline for past-due personal tax returns. Behind that sat a rental property reported without any capital cost allowance analysis. The exposure if the date slipped was around $42,000.
What we did for A retiree drawing from three sources, Ottawa, Ontario
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. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — A retiree drawing from three sources, Ottawa, Ontario
Filed with 15 days to spare. $42,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 3 · Cash and remittance control
$64,000 Of Working Capital Freed From The Tax Cycle — Student Filer, Vancouver
Client: A full-time student with tuition credits and part-time earnings · Where: Vancouver, British Columbia · Engagement: 3 weeks, fixed fee
Working capital freed$64,000
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation — A full-time student with tuition credits and part-time earnings, Vancouver, British Columbia
A full-time student with tuition credits and part-time earnings in Vancouver, British Columbia was profitable on paper and short of cash every month. Employment expenses claimed with no signed T2200 from the employer to support them explained most of the gap.
What we did for A full-time student with tuition credits and part-time earnings, Vancouver, British Columbia
We carried the capital loss back against gains reported in the prior three years and generated a refund rather than a carry-forward balance. We also built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result — A full-time student with tuition credits and part-time earnings, Vancouver, British Columbia
$64,000 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 4 · Records and systems rebuilt
Books Rebuilt From Source, $14,000 In Unclaimed Input Tax Found — Commissioned Salesperson, Lethbridge
Client: A commissioned salesperson · Where: Lethbridge, Alberta · Engagement: 6 weeks, fixed fee
Unclaimed tax found$14,000
Records rebuilt21 months
ProcessDocumented
The situation — A commissioned salesperson, Lethbridge, Alberta
A commissioned salesperson in Lethbridge, Alberta could not answer basic questions about its own numbers. 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 for A commissioned salesperson, Lethbridge, Alberta
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. We then documented the process so the work does not depend on any one person remembering how it was done.
The result — A commissioned salesperson, Lethbridge, Alberta
Records rebuilt and reconciled, $14,000 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 5 · Planning that cut the bill
Remuneration Review Saved $41,000 Across Corporate And Personal Returns — First-Year Physician, Barrie
Client: A physician in their first year of practice · Where: Barrie, Ontario · Engagement: 8 weeks, fixed fee
Combined saving$41,000
ScopeCorporate + personal
Future yearsNo rework needed
The situation — A physician in their first year of practice, Barrie, Ontario
Nothing was wrong at a physician in their first year of practice in Barrie, Ontario. The filings were on time and accurate. What they were not was planned. Three years of returns filed without the slips that had been mailed to an old address had never been reviewed.
What we did for A physician in their first year of practice, Barrie, 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. 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 physician in their first year of practice, Barrie, Ontario
$41,000 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
Case Study 6 · CRA review defended
$18,500 Reassessment Reduced To Nil On Review — Self-Employed Consultant, Victoria
Client: A self-employed consultant · Where: Victoria, British Columbia · Engagement: 9 weeks, fixed fee
Reassessment reduced toNil
Tax protected$18,500
Prior filingsUndisturbed
The situation — A self-employed consultant, Victoria, British Columbia
A review notice arrived at a self-employed consultant in Victoria, British Columbia, covering past-due personal tax returns for two tax years. The auditor's working position was an adjustment of $18,500. It was driven by foreign accounts that had crossed the T1135 threshold two years earlier.
What we did for A self-employed consultant, Victoria, British Columbia
Rather than negotiate, we rebuilt the record. We pooled the carried-forward donation receipts onto the higher-income spouse’s return so the whole claim sat above the low-rate first tier. We then submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result — A self-employed consultant, Victoria, British Columbia
The auditor accepted the documented position and closed the review without adjustment, protecting $18,500 and leaving the prior filings undisturbed.
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.
