CRA Audits

Net Worth Audits

A Net Worth Audit is a detailed examination conducted by the Canada Revenue Agency (CRA) to verify the accuracy of a taxpayer’s reported income by comparing increases in their net worth against declared earnings.

Net Worth Defense

Net worth audits involve a thorough review of financial records, bank accounts, property holdings, and lifestyle expenses. These audits are complex and invasive. As tax lawyers, we ensure your rights are protected and that your responses to the CRA are strategically managed to minimize risk and exposure.

Advising clients on their rights and obligations during the audit
Assisting with document collection and preparation of accurate disclosures
Challenging CRA’s assumptions and calculations where appropriate
Negotiating with CRA auditors to limit assessments and penalties
Representing clients in Notices of Objection and appeals to the Tax Court of Canada
Advising on potential criminal investigations and voluntary disclosures, if necessary

Audit Triggers

Net worth audits are often triggered by:

• Large asset purchases relative to reported income

• Significant lifestyle changes

• Cash-intensive businesses

• Third-party information discrepancies

Defend Against Lifestyle Audits

If you are facing a CRA net worth audit or believe one may be forthcoming, early legal advice is critical. Contact us for a confidential consultation to protect your interests.