6 worked Pension Income Splitting 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 pension income splitting work, not a specific client's file.
Case Study 1 · Objection and relief
Notice Of Objection Allowed In Full, $107,000 Reversed — US-Dividend Investor, Kelowna
Client: A taxpayer with US-source dividends · Where: Kelowna, British Columbia · Engagement: 7 weeks, fixed fee
Amount reversed$107,000
ObjectionAllowed in full
Account balanceNil
The situation — A taxpayer with US-source dividends, Kelowna, British Columbia
A taxpayer with US-source dividends in Kelowna, British Columbia had been reassessed for $107,000. 16 days were left on the objection deadline. The reassessment rested on RRSP room accumulated over eight years and never used in a high-income year.
What we did for A taxpayer with US-source dividends, Kelowna, British Columbia
We filed the objection inside the deadline with a complete submission rather than a placeholder. Alongside it, we filed the outstanding T1135 disclosures under the voluntary disclosure route before the CRA raised them.
The result — A taxpayer with US-source dividends, Kelowna, British Columbia
The appeals officer allowed the objection in full. $107,000 was reversed and the account returned to a nil balance.
Case Study 2 · Planning that cut the bill
$33,000 Cut From The Annual Tax Bill — Student Filer, Lethbridge
Client: A full-time student with tuition credits and part-time earnings · Where: Lethbridge, Alberta · Engagement: 8 weeks, fixed fee
First-year saving$33,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation — A full-time student with tuition credits and part-time earnings, Lethbridge, Alberta
A full-time student with tuition credits and part-time earnings in Lethbridge, Alberta was compliant but paying more than it needed to. The prior year had been filed correctly. It still left foreign accounts that had crossed the T1135 threshold two years earlier on the table.
What we did for A full-time student with tuition credits and part-time earnings, Lethbridge, Alberta
We modelled the current position against the alternatives before changing anything. 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 result — A full-time student with tuition credits and part-time earnings, Lethbridge, Alberta
The change saved $33,000 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 3 · Cash and remittance control
Instalments Rebased, $46,000 Of Cash Returned To The Business — Disability Amount Claimant, Calgary
Client: A taxpayer claiming a dependant's transferred disability amount · Where: Calgary, Alberta · Engagement: 10 weeks, fixed fee
Cash returned$46,000
Instalment basisCurrent year
ReviewedQuarterly
The situation — A taxpayer claiming a dependant's transferred disability amount, Calgary, Alberta
A taxpayer claiming a dependant's transferred disability amount in Calgary, Alberta was paying instalments calculated on a prior year. That year no longer reflected the business. A home sale never reported on the basis that the gain was exempt anyway was tying up $46,000 of cash.
What we did for A taxpayer claiming a dependant's transferred disability amount, Calgary, Alberta
We rebased the instalments on the current-year estimate rather than the prior-year default. Alongside that, we reset the medical expense claim window, transferred credits between spouses, and applied the tuition and disability amounts to the return that used them.
The result — A taxpayer claiming a dependant's transferred disability amount, Calgary, Alberta
$46,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 4 · Missed incentive claimed
$12,500 Credit Claim Filed And Accepted Without Adjustment — Pension-Splitting Retiree, Mississauga
Client: A retiree splitting eligible pension income with a spouse · Where: Mississauga, Ontario · Engagement: 6 weeks, fixed fee
Claim value$12,500
AcceptedWithout adjustment
RepeatableAnnually
The situation — A retiree splitting eligible pension income with a spouse, Mississauga, Ontario
A retiree splitting eligible pension income with a spouse in Mississauga, Ontario assumed the credits did not apply to a business its size. Years of small donation receipts claimed one at a time instead of pooled onto a single return meant they had applied all along.
What we did for A retiree splitting eligible pension income with a spouse, Mississauga, Ontario
We identified the qualifying activity and built the documentation to support it. Then 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 result — A retiree splitting eligible pension income with a spouse, Mississauga, Ontario
$12,500 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
Case Study 5 · CRA review defended
$100,000 Reassessment Reduced To Nil On Review — Mid-Year Interprovincial Mover, Ottawa
Client: An employee who moved provinces mid-year · Where: Ottawa, Ontario · Engagement: 3 weeks, fixed fee
Reassessment reduced toNil
Tax protected$100,000
Prior filingsUndisturbed
The situation — An employee who moved provinces mid-year, Ottawa, Ontario
A review notice arrived at an employee who moved provinces mid-year in Ottawa, Ontario, covering pension income splitting for two tax years. The auditor's working position was an adjustment of $100,000. It was driven by employment expenses claimed with no signed T2200 from the employer to support them.
What we did for An employee who moved provinces mid-year, Ottawa, Ontario
Rather than negotiate, we rebuilt the record. 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 then submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result — An employee who moved provinces mid-year, Ottawa, Ontario
The auditor accepted the documented position and closed the review without adjustment, protecting $100,000 and leaving the prior filings undisturbed.
Case Study 6 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $50,000 Saved Each Year — Self-Employed Consultant, Hamilton
The situation — A self-employed consultant, Hamilton, Ontario
A self-employed consultant in Hamilton, Ontario had outgrown the structure it started with. Three years of returns filed without the slips that had been mailed to an old address was the immediate problem. The longer-term one was that the structure blocked the next step.
What we did for A self-employed consultant, Hamilton, Ontario
We mapped the current structure and modelled the target. Then we carried the capital loss back against gains reported in the prior three years and generated a refund rather than a carry-forward balance. The tax-deferred elections were filed on time and the supporting valuations documented.
The result — A self-employed consultant, Hamilton, Ontario
The reorganisation completed without triggering tax, and the new structure saves approximately $50,000 a year while removing the exposure the old one carried.
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.
