6 worked T4 Tax Return Filing 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 t4 tax return filing work, not a specific client's file.
Case Study 1 · Records and systems rebuilt
Books Rebuilt From Source, $10,000 In Unclaimed Input Tax Found — Disability Amount Claimant, Ottawa
Client: A taxpayer claiming a dependant's transferred disability amount · Where: Ottawa, Ontario · Engagement: 4 weeks, fixed fee
Unclaimed tax found$10,000
Records rebuilt9 months
ProcessDocumented
The situation — A taxpayer claiming a dependant's transferred disability amount, Ottawa, Ontario
A taxpayer claiming a dependant's transferred disability amount in Ottawa, Ontario could not answer basic questions about its own numbers. RRSP room accumulated over eight years and never used in a high-income year sat between the bank statements and the ledger.
What we did for A taxpayer claiming a dependant's transferred disability amount, Ottawa, Ontario
We filed the outstanding T1135 disclosures under the voluntary disclosure route before the CRA raised them. We then documented the process so the work does not depend on any one person remembering how it was done.
The result — A taxpayer claiming a dependant's transferred disability amount, Ottawa, Ontario
Records rebuilt and reconciled, $10,000 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 2 · Scaling without breaking
Scaled To 66 Staff With $150,000 Of Working Capital Freed — Recently Separated Taxpayer, Guelph
The situation — A recently separated taxpayer, Guelph, Ontario
A recently separated taxpayer in Guelph, Ontario was growing fast, with headcount reaching 66 in eighteen months. The back office had not kept up. Years of small donation receipts claimed one at a time instead of pooled onto a single return was the first thing to break.
What we did for A recently separated taxpayer, Guelph, 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 built the compliance calendar for the size the business was becoming rather than the size it had been.
The result — A recently separated taxpayer, Guelph, Ontario
The business reached 66 staff with no missed remittance and no late filing. $150,000 of working capital was freed in the process.
Case Study 3 · Objection and relief
Desk-Review Assessment Of $14,500 Vacated — US-Dividend Investor, Kitchener
Client: A taxpayer with US-source dividends · Where: Kitchener, Ontario · Engagement: 9 weeks, fixed fee
Assessment vacated$14,500
Supporting recordsNow on file
AccountCleared
The situation — A taxpayer with US-source dividends, Kitchener, Ontario
A taxpayer with US-source dividends in Kitchener, Ontario was carrying $14,500 of penalties and interest. The charges arose from medical expenses claimed on a calendar-year basis when a shifted window was worth far more. Much of that amount accumulated during a period the CRA itself had delayed.
What we did for A taxpayer with US-source dividends, Kitchener, Ontario
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. We framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result — A taxpayer with US-source dividends, Kitchener, Ontario
The assessment was vacated. $14,500 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Case Study 4 · Cash and remittance control
$76,000 Of Working Capital Freed From The Tax Cycle — Two-Income Landlord Household, Surrey
Client: A two-income household with rental property · Where: Surrey, British Columbia · Engagement: 9 weeks, fixed fee
Working capital freed$76,000
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation — A two-income household with rental property, Surrey, British Columbia
A two-income household with rental property in Surrey, British Columbia was profitable on paper and short of cash every month. Foreign accounts that had crossed the T1135 threshold two years earlier explained most of the gap.
What we did for A two-income household with rental property, Surrey, 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 also built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result — A two-income household with rental property, Surrey, British Columbia
$76,000 was released back into working capital. Remittances have been on time every period since, and the forecast shows the tax outflow before it lands.
Case Study 5 · CRA review defended
$30,500 Proposed Adjustment Withdrawn In Full — Gig-Economy Driver, Calgary
Client: A gig-economy driver · Where: Calgary, Alberta · Engagement: 7 weeks, fixed fee
Adjustment withdrawn$30,500
File closed in7 weeks
Penalties assessedNone
The situation — A gig-economy driver, Calgary, Alberta
A gig-economy driver in Calgary, Alberta received a proposal letter opening a review of T4 tax return filing. The CRA had identified employment expenses claimed with no signed T2200 from the employer to support them. It proposed an adjustment of $30,500, with 30 days to respond.
What we did for A gig-economy driver, Calgary, Alberta
We treated the response as an evidence exercise rather than an argument. We recalculated the instalments on the current year’s expected income rather than the prior year’s, which stopped the instalment interest from growing. We then indexed every supporting document against the specific line the auditor had questioned.
The result — A gig-economy driver, Calgary, Alberta
The proposed adjustment was withdrawn in full — all $30,500 of it. The file closed in 7 weeks with no change to the assessed amounts and no penalty.
Case Study 6 · Backlog brought current
7 Years Filed, $76,000 Removed From The Assessed Balance — Mid-Year Interprovincial Mover, Windsor
Client: An employee who moved provinces mid-year · Where: Windsor, Ontario · Engagement: 5 weeks, fixed fee
Years filed7
Assessed balance removed$76,000
CollectionsStopped
The situation — An employee who moved provinces mid-year, Windsor, Ontario
An employee who moved provinces mid-year in Windsor, Ontario had not filed for 7 years. The CRA had issued arbitrary assessments. The business was carrying a rental property reported without any capital cost allowance analysis. That came on top of a growing interest balance.
What we did for An employee who moved provinces mid-year, Windsor, Ontario
We started with the oldest year and worked forward so each year's closing balances fed the next. 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. We filed the years in sequence rather than all at once.
The result — An employee who moved provinces mid-year, Windsor, Ontario
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $76,000 of the estimated balance came off, with a payment arrangement covering the rest.
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.
