6. Don’t file tax returns – CRA has a whole department dedicated to finding people who have not filed… so expect special attention from CRA!!
7. Not reporting cash payments – CRA has an underground economy division who enjoy doing “Net Worth Audits”. Here they reverse-engineer your income based on your assets!!!
8. Deduct everything possible – certain expenses (meals, entertainment, memberships, and donations) are looked at closely and based on industry averages!!
9. Report losses on Passive Income –especially on rental property income. CRA likes to take the position that all expenses are improvements and not deductible!
10. File Poor and Live Rich – Report very little income but have a lot of “STUFF”. Remember the CRA “Snitch” Line? Jealous neighbors and friends can use it!!
Are you Audit Proof?