6 worked Ten-Years-Late Tax 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 ten-years-late tax filing work, not a specific client's file.
Case Study 1 · Records and systems rebuilt
11 Months Reconciled And $11,000 Of Input Tax Recovered — Recently Separated Taxpayer, Mississauga
The situation — A recently separated taxpayer, Mississauga, Ontario
Nothing reconciled at a recently separated taxpayer in Mississauga, Ontario. Every filing started with 11 months of cleanup. The file was carrying medical expenses claimed on a calendar-year basis when a shifted window was worth far more.
What we did for A recently separated taxpayer, Mississauga, Ontario
We rebuilt from source rather than correcting on top of the existing file. 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 we set the routine that keeps it clean.
The result — A recently separated taxpayer, Mississauga, Ontario
11 months reconciled to the bank. The close now takes 6 days, and $11,000 of previously unclaimable input tax was recovered in the process.
Case Study 2 · Missed incentive claimed
$16,000 Credit Claim Filed And Accepted Without Adjustment — Student Filer, Calgary
Client: A full-time student with tuition credits and part-time earnings · Where: Calgary, Alberta · Engagement: 9 weeks, fixed fee
Claim value$16,000
AcceptedWithout adjustment
RepeatableAnnually
The situation — A full-time student with tuition credits and part-time earnings, Calgary, Alberta
A full-time student with tuition credits and part-time earnings in Calgary, Alberta assumed the credits did not apply to a business its size. RRSP room accumulated over eight years and never used in a high-income year meant they had applied all along.
What we did for A full-time student with tuition credits and part-time earnings, Calgary, Alberta
We identified the qualifying activity and built the documentation to support it. Then 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.
The result — A full-time student with tuition credits and part-time earnings, Calgary, Alberta
$16,000 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
Case Study 3 · Deadline rescue
11-Week Turnaround Beat The Deadline And Saved $126,000 — Multi-Source Retiree, Lethbridge
Client: A retiree drawing from three sources · Where: Lethbridge, Alberta · Engagement: 11 weeks, fixed fee
Late-filing penalty avoided$126,000
Filed with15 days to spare
Next yearPapers ready
The situation — A retiree drawing from three sources, Lethbridge, Alberta
A retiree drawing from three sources in Lethbridge, Alberta was weeks away from the deadline for ten-years-late tax filing. Behind that sat a home sale never reported on the basis that the gain was exempt anyway. The exposure if the date slipped was around $126,000.
What we did for A retiree drawing from three sources, Lethbridge, Alberta
We carried the capital loss back against gains reported in the prior three years and generated a refund rather than a carry-forward balance. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — A retiree drawing from three sources, Lethbridge, Alberta
Filed with 15 days to spare. $126,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Client: A taxpayer claiming a dependant's transferred disability amount · Where: Kelowna, British Columbia · Engagement: 7 weeks, fixed fee
Proposed tax cleared$113,000
Review duration7 weeks
OutcomeNo change
The situation — A taxpayer claiming a dependant's transferred disability amount, Kelowna, British Columbia
A taxpayer claiming a dependant's transferred disability amount in Kelowna, British Columbia was selected for review. Employment expenses claimed with no signed T2200 from the employer to support them had shown up in the CRA's automated matching. The proposed adjustment on ten-years-late tax filing came to $113,000.
What we did for A taxpayer claiming a dependant's transferred disability amount, Kelowna, British Columbia
We obtained the signed T2200 and rebuilt the employment-expense claim on the prescribed form with the supporting records attached to the file. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result — A taxpayer claiming a dependant's transferred disability amount, Kelowna, British Columbia
The review closed with no change. $113,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 5 · Objection and relief
Notice Of Objection Allowed In Full, $69,000 Reversed — First-Time Home Buyer, Moncton
Client: A first-time home buyer · Where: Moncton, New Brunswick · Engagement: 4 weeks, fixed fee
Amount reversed$69,000
ObjectionAllowed in full
Account balanceNil
The situation — A first-time home buyer, Moncton, New Brunswick
A first-time home buyer in Moncton, New Brunswick had been reassessed for $69,000. 24 days were left on the objection deadline. The reassessment rested on a rental property reported without any capital cost allowance analysis.
What we did for A first-time home buyer, Moncton, New Brunswick
We filed the objection inside the deadline with a complete submission rather than a placeholder. Alongside it, we filed the outstanding T1135 disclosures under the voluntary disclosure route before the CRA raised them.
The result — A first-time home buyer, Moncton, New Brunswick
The appeals officer allowed the objection in full. $69,000 was reversed and the account returned to a nil balance.
Case Study 6 · Scaling without breaking
Scaled To 70 Staff With $130,000 Of Working Capital Freed — Pension-Splitting Retiree, Victoria
Client: A retiree splitting eligible pension income with a spouse · Where: Victoria, British Columbia · Engagement: 10 weeks, fixed fee
Headcount reached70
Working capital freed$130,000
Missed deadlinesZero
The situation — A retiree splitting eligible pension income with a spouse, Victoria, British Columbia
A retiree splitting eligible pension income with a spouse in Victoria, British Columbia was growing fast, with headcount reaching 70 in eighteen months. The back office had not kept up. Foreign accounts that had crossed the T1135 threshold two years earlier was the first thing to break.
What we did for A retiree splitting eligible pension income with a spouse, Victoria, British Columbia
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 built the compliance calendar for the size the business was becoming rather than the size it had been.
The result — A retiree splitting eligible pension income with a spouse, Victoria, British Columbia
The business reached 70 staff with no missed remittance and no late filing. $130,000 of working capital was freed in the process.
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.
