The CRA uses a variety of audit methods to determine if a taxpayer is not disclosing portions of their income. These methods include analyzing the deposits and withdrawals in a taxpayer’s bank accounts, calculating the increase in their net worth or making assumptions about their cash sales. These audit methods are crude and often result in CRA reassessing taxpayers exorbitant amounts. With hard work and diligence, we can often reduce these reassessments significantly and sometimes have CRA withdraw them entirely.
