6 worked RRSP Deduction Review 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 rrsp deduction review work, not a specific client's file.
Case Study 1 · Planning that cut the bill
$19,500 Cut From The Annual Tax Bill — Student Filer, Red Deer
Client: A full-time student with tuition credits and part-time earnings · Where: Red Deer, Alberta · Engagement: 8 weeks, fixed fee
First-year saving$19,500
RepeatsAnnually
Filing positionUnchanged in risk
The situation — A full-time student with tuition credits and part-time earnings, Red Deer, Alberta
A full-time student with tuition credits and part-time earnings in Red Deer, Alberta was compliant but paying more than it needed to. The prior year had been filed correctly. It still left years of small donation receipts claimed one at a time instead of pooled onto a single return on the table.
What we did for A full-time student with tuition credits and part-time earnings, Red Deer, 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, Red Deer, Alberta
The change saved $19,500 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 2 · Deadline rescue
Filed On Time From A Standing Start, $43,000 Penalty Avoided — Recently Separated Taxpayer, Regina
The situation — A recently separated taxpayer, Regina, Saskatchewan
A recently separated taxpayer in Regina, Saskatchewan came to us 5 weeks before its filing deadline. The file came with three years of returns filed without the slips that had been mailed to an old address. A late filing would have triggered a penalty of roughly $43,000 before interest.
What we did for A recently separated taxpayer, Regina, Saskatchewan
We worked backwards from the deadline. 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 prioritised the items that actually gated the filing and deferred everything that did not.
The result — A recently separated taxpayer, Regina, Saskatchewan
The return was filed on time and complete. The $43,000 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Case Study 3 · Backlog brought current
Collections Halted And $46,000 Cut From A 3-Year Backlog — Disability Amount Claimant, Burnaby
Client: A taxpayer claiming a dependant's transferred disability amount · Where: Burnaby, British Columbia · Engagement: 7 weeks, fixed fee
Balance reduced by$46,000
Backlog cleared3 years
CollectionsHalted
The situation — A taxpayer claiming a dependant's transferred disability amount, Burnaby, British Columbia
By the time a taxpayer claiming a dependant's transferred disability amount in Burnaby, British Columbia called, 3 years were outstanding. The CRA had assessed on estimates. Underneath it sat a rental property reported without any capital cost allowance analysis.
What we did for A taxpayer claiming a dependant's transferred disability amount, Burnaby, British Columbia
We reconstructed the records year by year. We recalculated the instalments on the current year’s expected income rather than the prior year’s, which stopped the instalment interest from growing. Each filing replaced an arbitrary assessment with a real one.
The result — A taxpayer claiming a dependant's transferred disability amount, Burnaby, British Columbia
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $46,000, and a relief application addressed part of the accumulated interest.
Case Study 4 · CRA review defended
$15,500 Reassessment Reduced To Nil On Review — Multi-Source Retiree, Saskatoon
Client: A retiree drawing from three sources · Where: Saskatoon, Saskatchewan · Engagement: 6 weeks, fixed fee
Reassessment reduced toNil
Tax protected$15,500
Prior filingsUndisturbed
The situation — A retiree drawing from three sources, Saskatoon, Saskatchewan
A review notice arrived at a retiree drawing from three sources in Saskatoon, Saskatchewan, covering RRSP deduction review for two tax years. The auditor's working position was an adjustment of $15,500. It was driven by foreign accounts that had crossed the T1135 threshold two years earlier.
What we did for A retiree drawing from three sources, Saskatoon, Saskatchewan
Rather than negotiate, we rebuilt the record. We filed the outstanding T1135 disclosures under the voluntary disclosure route before the CRA raised them. We then submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result — A retiree drawing from three sources, Saskatoon, Saskatchewan
The auditor accepted the documented position and closed the review without adjustment, protecting $15,500 and leaving the prior filings undisturbed.
Client: A retiree splitting eligible pension income with a spouse · Where: Surrey, British Columbia · Engagement: 9 weeks, fixed fee
Overpayment refunded$108,000
Late remittances sinceZero
ScheduleAutomated
The situation — A retiree splitting eligible pension income with a spouse, Surrey, British Columbia
Remittances at a retiree splitting eligible pension income with a spouse in Surrey, British Columbia were consistently late by a few days. That was enough to trigger penalties every quarter. Behind it sat employment expenses claimed with no signed T2200 from the employer to support them.
What we did for A retiree splitting eligible pension income with a spouse, Surrey, British Columbia
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. Then we moved the remittance dates into a scheduled process rather than a monthly decision.
The result — A retiree splitting eligible pension income with a spouse, Surrey, British Columbia
Penalties stopped from the following remittance onwards, and $108,000 of overpaid instalments was refunded.
Case Study 6 · Objection and relief
Notice Of Objection Allowed In Full, $41,000 Reversed — First-Time Home Buyer, Winnipeg
Client: A first-time home buyer · Where: Winnipeg, Manitoba · Engagement: 4 weeks, fixed fee
Amount reversed$41,000
ObjectionAllowed in full
Account balanceNil
The situation — A first-time home buyer, Winnipeg, Manitoba
A first-time home buyer in Winnipeg, Manitoba had been reassessed for $41,000. 23 days were left on the objection deadline. The reassessment rested on medical expenses claimed on a calendar-year basis when a shifted window was worth far more.
What we did for A first-time home buyer, Winnipeg, Manitoba
We filed the objection inside the deadline with a complete submission rather than a placeholder. Alongside it, 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 first-time home buyer, Winnipeg, Manitoba
The appeals officer allowed the objection in full. $41,000 was reversed and the account returned to a nil balance.
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.
