Tax assessments based on your net worth: be prepared

24-Jul-2015 #Globalwealth Source: The Globe and Mail

Canada Revenue Agency (CRA) has the right to assess tax based on some amount of income that they think makes sense based on your net worth, costs of living and reported income. The change in net worth will be calculated from the beginning of a period to the end. Then an estimate of your cost of living expenses will be made, and this amount will be added to the difference in net worth calculated in the first step. The sum of these amounts is assumed to be your income for that period.

Read Full Article..