Pro Tax Tips – Defeating a Net Worth Audit

There are two means of defeating a net worth audit used by our expert Canadian tax lawyers. A Canadian tax lawyer may demonstrate the CRA does not have sufficient cause to use the net worth method by arguing the taxpayer’s records are adequate for use of another tax audit method. Alternatively, a Canadian tax lawyer may assist the taxpayer and their tax accountant in performing a full analysis and challenge of the net worth audit such as by showing the specific sources of non-taxable income or errors in the tax auditor’s methodology. 

Net worth audits are incredibly complex and the added risk of gross negligence penalties means having one of our expert certified Specialist in taxation Canadian tax lawyers assisting in contesting a net worth audit is vital.