Published: September 3, 2020
A net worth audit is an indirect audit tool available to CRA and used when the tax auditor thinks that the books and records or a taxpayer are incomplete and not all income has been reported. It looks at the change in net assets between the audit opening year and closing year and is increased by personal expenditures.
Disclaimer:
"This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."
