CRA Plans for High Net Worth Individuals Audits

by Lake
(Prince George, BC Canada)

In the Deloitte May 12, 2011 free newsletter Weekly Tax Highlights, there is a link to an article by Lorn Kutner titled The CRA places more scrutiny on high net worth individuals from their Privately Speaking - Tax Insight newsletter.

This article explains that "tax administration is going global".

CRA will be "focusing on individual taxpayers with a net worth of more than $50 million and/or with a complex structure of related entities". Experienced auditors are being assigned.

A 21 page questionnaire is being sent to interested parties looking for information organizational charts, personal banking or investment holdings, associations with private trusts, unlisted companies, joint ventures or partnerships.

Some are also being asked for the corporate minute book and BOD meeting minutes, correspondence with legal and accounting firms, as well as tax planning documents.

Deloitte's explains that "managing a tax controversy is as much an art as it is a science ... you should not be concerned if your affairs are properly executed and adequately documented."

To read the complete article, go to www.deloite.com >Global> Canada> Services> Private company services> Privately Speaking - Tax Insights> May 2011> The CRA places more scrutiny on high net worth individuals