6 T1 Adjustment tax and accounting engagements in full — what the client came to us with, what we did, and what it was worth. Each one is specific to t1 adjustment work, not a general example.
Case Study 1 · CRA review defended
$51,000 Proposed Adjustment Withdrawn In Full — Contractor Facing a Proposed, Calgary
Client: A contractor facing a proposed reassessment · Where: Calgary, Alberta · Engagement: 10 weeks, fixed fee
Adjustment withdrawn$51,000
File closed in10 weeks
Penalties assessedNone
The situation
A contractor facing a proposed reassessment in Calgary, Alberta received a proposal letter opening a review of t1 adjustment. The CRA had identified a net-worth assessment built on unexplained deposits that were actually loan proceeds and proposed an adjustment of $51,000, with 30 days to respond.
What we did
We treated the response as an evidence exercise rather than an argument. We filed the disclosure through the Voluntary Disclosures Program before contact, which removed the gross-negligence penalty entirely, then indexed every supporting document against the specific line the auditor had questioned.
The result
The proposed adjustment was withdrawn in full — all $51,000 of it. The file closed in 10 weeks with no change to the assessed amounts and no penalty.
Case Study 2 · Backlog brought current
4 Years Filed, $64,000 Removed From The Assessed Balance — Importer Under a Customs, Regina
Client: An importer under a customs and GST audit · Where: Regina, Saskatchewan · Engagement: 5 weeks, fixed fee
Years filed4
Assessed balance removed$64,000
CollectionsStopped
The situation
An importer under a customs and GST audit in Regina, Saskatchewan had not filed for 4 years. The CRA had issued arbitrary assessments, and the business was carrying six years of unfiled corporate and personal returns and an active collections file on top of a growing interest balance.
What we did
We started with the oldest year and worked forward so each year's closing balances fed the next. We brought every outstanding return current, then negotiated a payment arrangement that stopped the collections action, filing the years in sequence rather than all at once.
The result
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $64,000 of the estimated balance came off, with a payment arrangement covering the rest.
Case Study 3 · Deadline rescue
Filed On Time From A Standing Start, $44,000 Penalty Avoided — Taxpayer with Frozen Bank, Mississauga
Client: A taxpayer with frozen bank accounts · Where: Mississauga, Ontario · Engagement: 5 weeks, fixed fee
Penalty avoided$44,000
Turnaround5 weeks
FiledOn time
The situation
A taxpayer with frozen bank accounts in Mississauga, Ontario came to us 5 weeks before its filing deadline with a proposal letter with a 30-day response window and no supporting records assembled. A late filing would have triggered a penalty of roughly $44,000 before interest.
What we did
We worked backwards from the deadline. We assembled the contemporaneous records, filed a structured response to each proposed adjustment with the supporting documents indexed, and had the proposal withdrawn, prioritising the items that actually gated the filing and deferring everything that did not.
The result
The return was filed on time and complete. The $44,000 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Case Study 4 · Planning that cut the bill
$15,500 Cut From The Annual Tax Bill — Professional Under a Lifestyle, Red Deer
Client: A professional under a lifestyle audit · Where: Red Deer, Alberta · Engagement: 10 weeks, fixed fee
First-year saving$15,500
RepeatsAnnually
Filing positionUnchanged in risk
The situation
A professional under a lifestyle audit in Red Deer, Alberta was compliant but paying more than it needed to. The prior year had been filed correctly and still left an objection deadline that had passed with no extension applied for on the table.
What we did
We modelled the current position against the alternatives before changing anything, then traced each unexplained deposit to its source — loans, transfers between accounts, an insurance settlement — and reduced the net-worth assessment accordingly.
The result
The change saved $15,500 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 5 · Missed incentive claimed
Incentive Review Recovered $17,500 Across 4 Open Years — Corporation Under a GST/HST, Ottawa
Client: A corporation under a GST/HST review · Where: Ottawa, Ontario · Engagement: 8 weeks, fixed fee
Recovered$17,500
Open years claimed4
Ongoing trackingIn place
The situation
An incentive review at a corporation under a GST/HST review in Ottawa, Ontario started from a simple question: what has never been claimed? The answer ran to 4 years, driven by a net-worth assessment built on unexplained deposits that were actually loan proceeds.
What we did
We filed the disclosure through the Voluntary Disclosures Program before contact, which removed the gross-negligence penalty entirely, documenting eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result
The credits produced $17,500 across the open years, and the tracking now in place means the following year's claim is documented as the work happens rather than reconstructed afterwards.
Case Study 6 · Structure rebuilt
Holding Structure Added, $22,500 Saved Annually — Taxpayer with Eight Years, Windsor
Client: A taxpayer with eight years of unfiled returns · Where: Windsor, Ontario · Engagement: 7 weeks, fixed fee
Annual saving$22,500
ReorganisationTax-neutral
StructureMatches operations
The situation
A taxpayer with eight years of unfiled returns in Windsor, Ontario was carrying a net-worth assessment built on unexplained deposits that were actually loan proceeds, and every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did
Working with the client's lawyer, we brought every outstanding return current, then negotiated a payment arrangement that stopped the collections action and prepared the elections, resolutions and valuations the structure needed to stand up.
The result
The structure now matches the business. Annual saving of $22,500, and the reorganisation itself was tax-neutral.
Reviewed for the 2025 tax year by Udit Gupta, Certified Tax Accountant. Figures describe representative engagements of this type; outcomes depend on your own facts. Client names and identifying details are omitted for confidentiality.
