6 worked Personal Tax Audit Support 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 personal tax audit support work, not a specific client's file.
Case Study 1 · Scaling without breaking
Scaled To 43 Staff With $25,000 Of Working Capital Freed — Commissioned Salesperson, Burnaby
Client: A commissioned salesperson · Where: Burnaby, British Columbia · Engagement: 4 weeks, fixed fee
Headcount reached43
Working capital freed$25,000
Missed deadlinesZero
The situation — A commissioned salesperson, Burnaby, British Columbia
A commissioned salesperson in Burnaby, British Columbia was growing fast, with headcount reaching 43 in eighteen months. The back office had not kept up. A rental property reported without any capital cost allowance analysis was the first thing to break.
What we did for A commissioned salesperson, Burnaby, 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 built the compliance calendar for the size the business was becoming rather than the size it had been.
The result — A commissioned salesperson, Burnaby, British Columbia
The business reached 43 staff with no missed remittance and no late filing. $25,000 of working capital was freed in the process.
Case Study 2 · Cash and remittance control
Remittance Schedule Corrected, $25,000 Refunded — First-Year Physician, Red Deer
Client: A physician in their first year of practice · Where: Red Deer, Alberta · Engagement: 6 weeks, fixed fee
Overpayment refunded$25,000
Late remittances sinceZero
ScheduleAutomated
The situation — A physician in their first year of practice, Red Deer, Alberta
Remittances at a physician in their first year of practice in Red Deer, Alberta were consistently late by a few days. That was enough to trigger penalties every quarter. Behind it sat RRSP room accumulated over eight years and never used in a high-income year.
What we did for A physician in their first year of practice, Red Deer, Alberta
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. Then we moved the remittance dates into a scheduled process rather than a monthly decision.
The result — A physician in their first year of practice, Red Deer, Alberta
Penalties stopped from the following remittance onwards, and $25,000 of overpaid instalments was refunded.
Case Study 3 · Backlog brought current
$120,000 Of Arbitrary Assessments Vacated After 4 Years — Self-Employed Consultant, Barrie
The situation — A self-employed consultant, Barrie, Ontario
4 years of unfiled returns had turned into notional assessments at a self-employed consultant in Barrie, Ontario. Underneath lay foreign accounts that had crossed the T1135 threshold two years earlier. Collections had already started.
What we did for A self-employed consultant, Barrie, Ontario
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 filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result — A self-employed consultant, Barrie, Ontario
All 4 years were accepted as filed. $120,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 4 years.
Case Study 4 · Planning that cut the bill
$21,000 Saved By Correcting What Prior Filings Had Missed — Employee with Foreign Accounts, Toronto
Client: An employee with foreign investment accounts · Where: Toronto, Ontario · Engagement: 10 weeks, fixed fee
Saving identified$21,000
RecurringYes
Positions documentedAll
The situation — An employee with foreign investment accounts, Toronto, Ontario
An employee with foreign investment accounts in Toronto, Ontario asked for a second opinion on personal tax audit support. That followed three years of rising tax. The review found a home sale never reported on the basis that the gain was exempt anyway.
What we did for An employee with foreign investment accounts, Toronto, Ontario
We built the comparison first: current structure against two alternatives. Then we filed the outstanding T1135 disclosures under the voluntary disclosure route before the CRA raised them.
The result — An employee with foreign investment accounts, Toronto, Ontario
First-year saving of $21,000, with the same benefit recurring. Every position taken is documented and supported in the file.
Client: A retiree splitting eligible pension income with a spouse · Where: Edmonton, Alberta · Engagement: 9 weeks, fixed fee
Annual saving$25,500
ReorganisationTax-neutral
StructureMatches operations
The situation — A retiree splitting eligible pension income with a spouse, Edmonton, Alberta
The structure at a retiree splitting eligible pension income with a spouse in Edmonton, Alberta needed fixing. The file was carrying years of small donation receipts claimed one at a time instead of pooled onto a single return. Every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did for A retiree splitting eligible pension income with a spouse, Edmonton, Alberta
We worked with the client's lawyer. Together, we obtained the signed T2200 and rebuilt the employment-expense claim on the prescribed form with the supporting records attached to the file. We also prepared the elections, resolutions and valuations the structure needed to stand up.
The result — A retiree splitting eligible pension income with a spouse, Edmonton, Alberta
The structure now matches the business. Annual saving of $25,500, and the reorganisation itself was tax-neutral.
Case Study 6 · Objection and relief
$51,000 Of Penalties And Interest Cancelled On Relief — Multi-Source Retiree, Surrey
Client: A retiree drawing from three sources · Where: Surrey, British Columbia · Engagement: 8 weeks, fixed fee
Penalties and interest cancelled$51,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — A retiree drawing from three sources, Surrey, British Columbia
An assessment of $51,000 landed at a retiree drawing from three sources in Surrey, British Columbia following a desk review. It turned on employment expenses claimed with no signed T2200 from the employer to support them. The auditor had not seen the records behind it.
What we did for A retiree drawing from three sources, Surrey, British Columbia
We reset the medical expense claim window, transferred credits between spouses, and applied the tuition and disability amounts to the return that used them. We then set out the legislative basis for the position alongside the documents supporting it.
The result — A retiree drawing from three sources, Surrey, British Columbia
$51,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
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.
