CRA is making more use of indirect tax audit techniques, including net worth tax audits. However the broader use of this technically complex tax audit method has resulted in lower audit standards, probably due to improper tax auditor training. The challenge of proposed net worth audit results requires a detailed analysis of both the work done by the CRA tax auditor and the client books and records. Our tax law firm has found fundamental errors in CRA working papers including double counting of shareholder loan amounts and of inter bank transfers.
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