The net worth assessment audit method relies on the theory that when a taxpayer has income in a year, they can either invest it or spend it. When an auditor adds up all non-deductible expenditures (mostly personal living costs) to the taxpayer’s change in net-worth and compare the net-worth at the start and the end of the tax year, an increase in net-worth can be deemed to be taxable income. Using this method, CRA may assume facts that can be to the taxpayer’s disadvantage.
Faris CPA has successfully challenged this type of assessment, removing significant tax liabilities for taxpayers. Call us today at for a free and confidential Initial Consultation about any accounting or tax matters. As an experienced, certified, licensed, and expert tax accounting firm we help our clients handle all tax and accounting issues. Give us a call today at 1 844 340 5771.