» Tax Consulting and Related Services »
June 13, 2024

Service Areas

Net Worth Assessments

The CCRA sometimes uses an auditing technique called a net worth assessment to detect unreported income. Basically, this involves determining the increase in a person's net worth over a period of time, and then examining the person's sources of income and expenses to determine whether the income that is reported can reasonably account for the change in net worth. The CCRA is making increased use this auditing technique, and assessments can sometimes be made in error.

When asked to undertake a defence of a client who is subject to a net worth assessment, we

  • meet with the client to determine the true facts;
  • review the CCRA's working papers to determine any obvious errors;
  • negotiate with the CCRA to obtain a reasonable settlement of the amount in dispute, which may involve filing a notice of objection and discussing the matter with the appeals division; and
  • involve legal counsel to assist us where the amounts involved are large, or where criminal allegations are made.

We normally undertake this work only on a full retainer basis.