6 worked T1 Adjustment Request 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 t1 adjustment request work, not a specific client's file.
Case Study 1 · Records and systems rebuilt
33 Months Reconciled And $7,200 Of Input Tax Recovered — Mid-Year Interprovincial Mover, Kitchener
Client: An employee who moved provinces mid-year · Where: Kitchener, Ontario · Engagement: 11 weeks, fixed fee
Months reconciled33
Input tax recovered$7,200
Close time8 days
The situation — An employee who moved provinces mid-year, Kitchener, Ontario
An employee who moved provinces mid-year in Kitchener, Ontario was carrying a home sale never reported on the basis that the gain was exempt anyway. Nothing reconciled, and every filing started with 33 months of cleanup.
What we did for An employee who moved provinces mid-year, Kitchener, Ontario
We rebuilt from source rather than correcting on top of the existing file. 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 set the routine that keeps it clean.
The result — An employee who moved provinces mid-year, Kitchener, Ontario
33 months reconciled to the bank. The close now takes 8 days, and $7,200 of previously unclaimable input tax was recovered in the process.
Case Study 2 · Backlog brought current
Collections Halted And $140,000 Cut From A 3-Year Backlog — First-Time Home Buyer, Kelowna
Client: A first-time home buyer · Where: Kelowna, British Columbia · Engagement: 4 weeks, fixed fee
Balance reduced by$140,000
Backlog cleared3 years
CollectionsHalted
The situation — A first-time home buyer, Kelowna, British Columbia
By the time a first-time home buyer in Kelowna, British Columbia called, 3 years were outstanding and the CRA had assessed on estimates. Underneath it sat a rental property reported without any capital cost allowance analysis.
What we did for A first-time home buyer, Kelowna, British Columbia
We reconstructed the records year by year and reported the disposition and filed the principal residence designation for the year of sale, closing the late-designation exposure before the CRA raised it. Each filing replaced an arbitrary assessment with a real one.
The result — A first-time home buyer, Kelowna, British Columbia
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $140,000, and a relief application addressed part of the accumulated interest.
Case Study 3 · Scaling without breaking
Growth Handled Without A Missed Filing, $121,000 Freed — Disability Amount Claimant, Mississauga
Client: A taxpayer claiming a dependant's transferred disability amount · Where: Mississauga, Ontario · Engagement: 9 weeks, fixed fee
Cash freed$121,000
Compliance failuresNone
ReportingMonthly
The situation — A taxpayer claiming a dependant's transferred disability amount, Mississauga, Ontario
A taxpayer claiming a dependant's transferred disability amount in Mississauga, Ontario was opening in a second province — different filing obligations, a different payroll regime, and employment expenses claimed with no signed T2200 from the employer to support them already in the file.
What we did for A taxpayer claiming a dependant's transferred disability amount, Mississauga, Ontario
We filed the outstanding T1135 disclosures under the voluntary disclosure route before the CRA raised them and put monthly reporting in place so the owner could see the cash effect of growth while there was still time to act on it.
The result — A taxpayer claiming a dependant's transferred disability amount, Mississauga, Ontario
Growth was absorbed without a compliance failure. $121,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 4 · Deadline rescue
Filed On Time From A Standing Start, $32,500 Penalty Avoided — Recently Separated Taxpayer, Halifax
Client: A recently separated taxpayer · Where: Halifax, Nova Scotia · Engagement: 7 weeks, fixed fee
Penalty avoided$32,500
Turnaround7 weeks
FiledOn time
The situation — A recently separated taxpayer, Halifax, Nova Scotia
A recently separated taxpayer in Halifax, Nova Scotia came to us 7 weeks before its filing deadline with foreign accounts that had crossed the T1135 threshold two years earlier. A late filing would have triggered a penalty of roughly $32,500 before interest.
What we did for A recently separated taxpayer, Halifax, Nova Scotia
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, prioritising the items that actually gated the filing and deferring everything that did not.
The result — A recently separated taxpayer, Halifax, Nova Scotia
The return was filed on time and complete. The $32,500 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Case Study 5 · Objection and relief
$84,000 Of Penalties And Interest Cancelled On Relief — US-Dividend Investor, Red Deer
Client: A taxpayer with US-source dividends · Where: Red Deer, Alberta · Engagement: 3 weeks, fixed fee
Penalties and interest cancelled$84,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — A taxpayer with US-source dividends, Red Deer, Alberta
An assessment of $84,000 landed at a taxpayer with US-source dividends in Red Deer, Alberta following a desk review. The auditor had not seen the records behind medical expenses claimed on a calendar-year basis when a shifted window was worth far more.
What we did for A taxpayer with US-source dividends, Red Deer, Alberta
We reset the medical expense claim window, transferred credits between spouses, and applied the tuition and disability amounts to the return that used them, then set out the legislative basis for the position alongside the documents supporting it.
The result — A taxpayer with US-source dividends, Red Deer, Alberta
$84,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 6 · Planning that cut the bill
$11,500 Cut From The Annual Tax Bill — Two-Income Landlord Household, Guelph
Client: A two-income household with rental property · Where: Guelph, Ontario · Engagement: 8 weeks, fixed fee
First-year saving$11,500
RepeatsAnnually
Filing positionUnchanged in risk
The situation — A two-income household with rental property, Guelph, Ontario
A two-income household with rental property in Guelph, Ontario was compliant but paying more than it needed to. The prior year had been filed correctly and 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 two-income household with rental property, Guelph, Ontario
We modelled the current position against the alternatives before changing anything, then pulled the full slip history from the CRA record, refiled the affected years by adjustment request, and recovered the credits that had been missed.
The result — A two-income household with rental property, Guelph, Ontario
The change saved $11,500 in the first year and repeats annually. Nothing about the filings became more aggressive; the position is simply the one the rules already allowed.
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.
