6 worked Rental Income 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 rental income audit support work, not a specific client's file.
Case Study 1 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $71,000 Saved Each Year — Family Business Under Review, Barrie
Client: A family business under a related-party review · Where: Barrie, Ontario · Engagement: 10 weeks, fixed fee
Annual saving$71,000
Tax on reorganisationDeferred
Elections filedOn time
The situation — A family business under a related-party review, Barrie, Ontario
A family business under a related-party review in Barrie, Ontario had outgrown the structure it started with. A net-worth assessment built on unexplained deposits that were actually loan proceeds was the immediate problem; the longer-term one was that the structure blocked the next step.
What we did for A family business under a related-party review, Barrie, Ontario
We mapped the current structure, modelled the target, and traced each unexplained deposit to its source — loans, transfers between accounts, an insurance settlement — and reduced the net-worth assessment accordingly — with the tax-deferred elections filed on time and the supporting valuations documented.
The result — A family business under a related-party review, Barrie, Ontario
The reorganisation completed without triggering tax, and the new structure saves approximately $71,000 a year while removing the exposure the old one carried.
Case Study 2 · Missed incentive claimed
$14,500 In Credits Claimed That Prior Filings Had Missed — Importer Under Audit, Hamilton
Client: An importer under a customs and GST audit · Where: Hamilton, Ontario · Engagement: 7 weeks, fixed fee
Credits claimed$14,500
Years adjusted5
Review outcomeNo adjustment
The situation — An importer under a customs and GST audit, Hamilton, Ontario
An importer under a customs and GST audit in Hamilton, Ontario had been filing for 5 years without ever claiming the incentives its activity qualified for. Behind that sat a net-worth assessment built on unexplained deposits that were actually loan proceeds.
What we did for An importer under a customs and GST audit, Hamilton, Ontario
We tested each activity against the eligibility criteria rather than the description on the invoice, then answered each query in writing with an indexed document package, so the file showed exactly what the auditor had received and on what date.
The result — An importer under a customs and GST audit, Hamilton, Ontario
$14,500 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 3 · Planning that cut the bill
$62,000 Cut From The Annual Tax Bill — Late-Objection Taxpayer, Windsor
Client: A taxpayer whose objection window has closed · Where: Windsor, Ontario · Engagement: 11 weeks, fixed fee
First-year saving$62,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation — A taxpayer whose objection window has closed, Windsor, Ontario
A taxpayer whose objection window has closed in Windsor, Ontario was compliant but paying more than it needed to. The prior year had been filed correctly and still left a proposal letter with a 30-day response window and no supporting records assembled on the table.
What we did for A taxpayer whose objection window has closed, Windsor, Ontario
We modelled the current position against the alternatives before changing anything, then filed the Tax Court appeal inside the window and resolved the remaining adjustments before a hearing date was needed.
The result — A taxpayer whose objection window has closed, Windsor, Ontario
The change saved $62,000 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 4 · Deadline rescue
9-Week Turnaround Beat The Deadline And Saved $128,000 — Voluntary Disclosure Applicant, Ottawa
Client: A business owner considering a voluntary disclosure · Where: Ottawa, Ontario · Engagement: 9 weeks, fixed fee
Late-filing penalty avoided$128,000
Filed with7 days to spare
Next yearPapers ready
The situation — A business owner considering a voluntary disclosure, Ottawa, Ontario
With the deadline for rental income audit support weeks away, a business owner considering a voluntary disclosure in Ottawa, Ontario was carrying a confirmation letter left in a drawer until the appeal window had closed. The exposure if the date slipped was around $128,000.
What we did for A business owner considering a voluntary disclosure, Ottawa, Ontario
We assembled the contemporaneous records, filed a structured response to each proposed adjustment with the supporting documents indexed, and had the proposal withdrawn. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — A business owner considering a voluntary disclosure, Ottawa, Ontario
Filed with 7 days to spare. $128,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 5 · Backlog brought current
Collections Halted And $22,500 Cut From A 5-Year Backlog — Assessed Shareholder, Red Deer
Client: A shareholder assessed on a taxable benefit · Where: Red Deer, Alberta · Engagement: 10 weeks, fixed fee
Balance reduced by$22,500
Backlog cleared5 years
CollectionsHalted
The situation — A shareholder assessed on a taxable benefit, Red Deer, Alberta
By the time a shareholder assessed on a taxable benefit in Red Deer, Alberta called, 5 years were outstanding and the CRA had assessed on estimates. Underneath it sat an audit conducted over the phone, with nothing on file showing what had been provided or when.
What we did for A shareholder assessed on a taxable benefit, Red Deer, Alberta
We reconstructed the records year by year and filed the disclosure through the Voluntary Disclosures Program before contact, which removed the gross-negligence penalty entirely. Each filing replaced an arbitrary assessment with a real one.
The result — A shareholder assessed on a taxable benefit, Red Deer, Alberta
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $22,500, and a relief application addressed part of the accumulated interest.
Case Study 6 · CRA review defended
$90,000 Reassessment Reduced To Nil On Review — Taxpayer Relief Applicant, Mississauga
Client: A taxpayer applying for relief from penalties and interest · Where: Mississauga, Ontario · Engagement: 6 weeks, fixed fee
Reassessment reduced toNil
Tax protected$90,000
Prior filingsUndisturbed
The situation — A taxpayer applying for relief from penalties and interest, Mississauga, Ontario
A review notice arrived at a taxpayer applying for relief from penalties and interest in Mississauga, Ontario covering rental income audit support for two tax years. The auditor's working position was an adjustment of $90,000, driven by a waiver signed at the counter that kept an otherwise closed year open with no end date.
What we did for A taxpayer applying for relief from penalties and interest, Mississauga, Ontario
Rather than negotiate, we rebuilt the record. We kept the waiver narrowed to the issue actually under review and let the remaining years close on the normal reassessment period and submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result — A taxpayer applying for relief from penalties and interest, Mississauga, Ontario
The auditor accepted the documented position and closed the review without adjustment, protecting $90,000 and leaving the prior filings undisturbed.
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.
