6 worked Pension Income Tax Return 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 tax return work, not a specific client's file.
Case Study 1 · Missed incentive claimed
$67,000 In Credits Claimed That Prior Filings Had Missed — Two-Income Landlord Household, Kitchener
Client: A two-income household with rental property · Where: Kitchener, Ontario · Engagement: 7 weeks, fixed fee
Credits claimed$67,000
Years adjusted6
Review outcomeNo adjustment
The situation — A two-income household with rental property, Kitchener, Ontario
A two-income household with rental property in Kitchener, Ontario had been filing for 6 years without ever claiming the incentives its activity qualified for. Behind that sat medical expenses claimed on a calendar-year basis when a shifted window was worth far more.
What we did for A two-income household with rental property, Kitchener, Ontario
We tested each activity against the eligibility criteria rather than the description on the invoice, then pooled the carried-forward donation receipts onto the higher-income spouse’s return so the whole claim sat above the low-rate first tier.
The result — A two-income household with rental property, Kitchener, Ontario
$67,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 2 · Deadline rescue
$105,000 Late-Filing Penalty Cancelled On Relief Application — Student Filer, Vancouver
Client: A full-time student with tuition credits and part-time earnings · Where: Vancouver, British Columbia · Engagement: 10 weeks, fixed fee
Penalty cancelled$105,000
Relief applicationGranted
ReturnAccepted as filed
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 had already missed one deadline and was about to miss a second. Behind it sat foreign accounts that had crossed the T1135 threshold two years earlier, and a penalty of $105,000 was accruing.
What we did for A full-time student with tuition credits and part-time earnings, Vancouver, British Columbia
We split the work into what had to happen before the deadline and what could follow it, then recalculated the instalments on the current year’s expected income rather than the prior year’s, which stopped the instalment interest from growing.
The result — A full-time student with tuition credits and part-time earnings, Vancouver, British Columbia
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $105,000 of the penalty already assessed on the earlier year.
Case Study 3 · CRA review defended
Audit Defence Closed In 6 Weeks, $122,000 Cleared — First-Time Home Buyer, Brampton
Client: A first-time home buyer · Where: Brampton, Ontario · Engagement: 6 weeks, fixed fee
Proposed tax cleared$122,000
Review duration6 weeks
OutcomeNo change
The situation — A first-time home buyer, Brampton, Ontario
A first-time home buyer in Brampton, Ontario was selected for review after RRSP room accumulated over eight years and never used in a high-income year showed up in the CRA's automated matching. The proposed adjustment on pension income tax return came to $122,000.
What we did for A first-time home buyer, Brampton, Ontario
We reset the medical expense claim window, transferred credits between spouses, and applied the tuition and disability amounts to the return that used them. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result — A first-time home buyer, Brampton, Ontario
The review closed with no change. $122,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 4 · Objection and relief
$119,000 Of Penalties And Interest Cancelled On Relief — Self-Employed Consultant, Toronto
The situation — A self-employed consultant, Toronto, Ontario
An assessment of $119,000 landed at a self-employed consultant in Toronto, Ontario following a desk review. The auditor had not seen the records behind a rental property reported without any capital cost allowance analysis.
What we did for A self-employed consultant, Toronto, Ontario
We filed the outstanding T1135 disclosures under the voluntary disclosure route before the CRA raised them, then set out the legislative basis for the position alongside the documents supporting it.
The result — A self-employed consultant, Toronto, Ontario
$119,000 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 · Records and systems rebuilt
15 Months Reconciled And $3,900 Of Input Tax Recovered — US-Dividend Investor, London
Client: A taxpayer with US-source dividends · Where: London, Ontario · Engagement: 5 weeks, fixed fee
Months reconciled15
Input tax recovered$3,900
Close time8 days
The situation — A taxpayer with US-source dividends, London, Ontario
A taxpayer with US-source dividends in London, Ontario was carrying medical expenses claimed on a calendar-year basis when a shifted window was worth far more. Nothing reconciled, and every filing started with 15 months of cleanup.
What we did for A taxpayer with US-source dividends, London, Ontario
We rebuilt from source rather than correcting on top of the existing file. We obtained the signed T2200 and rebuilt the employment-expense claim on the prescribed form with the supporting records attached to the file, then set the routine that keeps it clean.
The result — A taxpayer with US-source dividends, London, Ontario
15 months reconciled to the bank. The close now takes 8 days, and $3,900 of previously unclaimable input tax was recovered in the process.
Case Study 6 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $26,500 Saved Each Year — Multi-Source Retiree, Guelph
Client: A retiree drawing from three sources · Where: Guelph, Ontario · Engagement: 4 weeks, fixed fee
Annual saving$26,500
Tax on reorganisationDeferred
Elections filedOn time
The situation — A retiree drawing from three sources, Guelph, Ontario
A retiree drawing from three sources in Guelph, 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 retiree drawing from three sources, Guelph, Ontario
We mapped the current structure, modelled the target, and pulled the full slip history from the CRA record, refiled the affected years by adjustment request, and recovered the credits that had been missed — with the tax-deferred elections filed on time and the supporting valuations documented.
The result — A retiree drawing from three sources, Guelph, Ontario
The reorganisation completed without triggering tax, and the new structure saves approximately $26,500 a year while removing the exposure the old one carried.
Reviewed for the 2025 tax year by Udit Gupta, Founder and Tax Accountant. 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.
