While postal code based audits are not new, CRA’s formalization of the project is. CRA will be targeting several wealthy neighbourhoods to try to ensure that all income by high net worth individuals has been properly reported. CRA has specifically not released what neighbourhoods will be subject to tax auditor scrutiny. Anyone who has unreported income or unreported offshore assets can avail themselves of the CRA voluntary disclosure program to avoid tax prosecution and tax penalties.
CRA Announces Postal Code Tax Audit Project
Rotfleisch & Samulovitch P.C.
Contributor
Rotfleisch Samulovitch PC is one of Canada's premier boutique tax law firms. Its website, taxpage.com, has a large database of original Canadian tax articles. Founding tax lawyer David J Rotfleisch, JD, CA, CPA, frequently appears in print, radio and television. Their tax lawyers deal with CRA auditors and collectors on a daily basis and carry out tax planning as well.
While postal code based audits are not new, CRA’s formalization of the project is. CRA will be targeting several wealthy neighbourhoods to try to ensure that all income by high net worth individuals has been properly reported.