6 worked T5018 Subcontractor Reporting 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 t5018 subcontractor reporting work, not a specific client's file.
Case Study 1 · Backlog brought current
Collections Halted And $122,000 Cut From A 4-Year Backlog — Stock-Option Tech Team, Lethbridge
Client: A growing tech team with stock options · Where: Lethbridge, Alberta · Engagement: 6 weeks, fixed fee
Balance reduced by$122,000
Backlog cleared4 years
CollectionsHalted
The situation — A growing tech team with stock options, Lethbridge, Alberta
By the time a growing tech team with stock options in Lethbridge, Alberta called, 4 years were outstanding and the CRA had assessed on estimates. Underneath it sat a bonus accrued to bring the year-end tax bill down and still unpaid more than a year later.
What we did for A growing tech team with stock options, Lethbridge, Alberta
We reconstructed the records year by year and corrected the CPP and EI withholding for the balance of the year and set the employee up to recover the over-deduction on the personal return. Each filing replaced an arbitrary assessment with a real one.
The result — A growing tech team with stock options, Lethbridge, Alberta
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $122,000, and a relief application addressed part of the accumulated interest.
Case Study 2 · Sale and succession
Intergenerational Transfer Completed With $220,000 Deferred — Multi-Province Driver Fleet, Victoria
Client: A logistics operator with drivers in three provinces · Where: Victoria, British Columbia · Engagement: 8 weeks, fixed fee
Tax deferred$220,000
TransferCompleted
RecordsReview-ready
The situation — A logistics operator with drivers in three provinces, Victoria, British Columbia
A generational transfer at a logistics operator with drivers in three provinces in Victoria, British Columbia had been discussed for years without a plan. Passive assets sitting inside the operating company, disqualifying the shares meant the transfer as contemplated would have been fully taxable.
What we did for A logistics operator with drivers in three provinces, Victoria, British Columbia
We reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips, sequencing the steps so each one was complete and documented before the next depended on it.
The result — A logistics operator with drivers in three provinces, Victoria, British Columbia
$220,000 of tax was deferred through the transfer, and the successor generation took over a corporation whose records stood up to review.
Case Study 3 · Missed incentive claimed
Incentive Review Recovered $28,000 Across 6 Open Years — Part-Time Program Employer, London
Client: A charity with part-time program staff · Where: London, Ontario · Engagement: 8 weeks, fixed fee
Recovered$28,000
Open years claimed6
Ongoing trackingIn place
The situation — A charity with part-time program staff, London, Ontario
An incentive review at a charity with part-time program staff in London, Ontario started from a simple question: what has never been claimed? The answer ran to 6 years, driven by T4s that did not agree to the payroll register or the general ledger.
What we did for A charity with part-time program staff, London, Ontario
We reviewed each contractor against the CRA’s control and integration tests, converted those who met the employment tests, and priced the transition before it was forced by a ruling, documenting eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result — A charity with part-time program staff, London, Ontario
The credits produced $28,000 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 4 · CRA review defended
$55,000 Proposed Adjustment Withdrawn In Full — Mixed-Crew Construction Firm, Ottawa
Client: A construction firm with union and non-union crews · Where: Ottawa, Ontario · Engagement: 4 weeks, fixed fee
Adjustment withdrawn$55,000
File closed in4 weeks
Penalties assessedNone
The situation — A construction firm with union and non-union crews, Ottawa, Ontario
A construction firm with union and non-union crews in Ottawa, Ontario received a proposal letter opening a review of t5018 subcontractor reporting. The CRA had identified company vehicles used personally with no logbook and no taxable benefit reported and proposed an adjustment of $55,000, with 30 days to respond.
What we did for A construction firm with union and non-union crews, Ottawa, Ontario
We treated the response as an evidence exercise rather than an argument. We wrote each pay code against its income tax, CPP and EI treatment, so a new benefit could not reach the payroll without a decision on how it was withheld, then indexed every supporting document against the specific line the auditor had questioned.
The result — A construction firm with union and non-union crews, Ottawa, Ontario
The proposed adjustment was withdrawn in full — all $55,000 of it. The file closed in 4 weeks with no change to the assessed amounts and no penalty.
Case Study 5 · Scaling without breaking
Scaled To 38 Staff With $58,000 Of Working Capital Freed — Seasonal Landscaping Employer, Toronto
Client: A landscaping company with seasonal staff · Where: Toronto, Ontario · Engagement: 4 weeks, fixed fee
Headcount reached38
Working capital freed$58,000
Missed deadlinesZero
The situation — A landscaping company with seasonal staff, Toronto, Ontario
A landscaping company with seasonal staff in Toronto, Ontario was growing fast — headcount to 38 in eighteen months — and the back office had not kept up. T4 slips filed weeks after the deadline with no relief request made on the per-slip penalty was the first thing to break.
What we did for A landscaping company with seasonal staff, Toronto, Ontario
We filed the outstanding slips and summary and requested relief on the per-slip penalty with the reasons documented in writing, and built the compliance calendar for the size the business was becoming rather than the size it had been.
The result — A landscaping company with seasonal staff, Toronto, Ontario
The business reached 38 staff with no missed remittance and no late filing. $58,000 of working capital was freed in the process.
Case Study 6 · Planning that cut the bill
$57,000 Saved By Correcting What Prior Filings Had Missed — Higher-Frequency Remitter, Windsor
Client: An employer whose remittance frequency moved up a threshold · Where: Windsor, Ontario · Engagement: 9 weeks, fixed fee
Saving identified$57,000
RecurringYes
Positions documentedAll
The situation — An employer whose remittance frequency moved up a threshold, Windsor, Ontario
An employer whose remittance frequency moved up a threshold in Windsor, Ontario asked for a second opinion on t5018 subcontractor reporting after three years of rising tax. The review found T4s that did not agree to the payroll register or the general ledger.
What we did for An employer whose remittance frequency moved up a threshold, Windsor, Ontario
We built the comparison first — current structure against two alternatives — and then paid the accrued bonus inside the 179-day window and kept the deduction in the year it was accrued.
The result — An employer whose remittance frequency moved up a threshold, Windsor, Ontario
First-year saving of $57,000, with the same benefit recurring. Every position taken is documented and supported in the file.
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.
