Groupe Dupuis Paquin

Net Worth - Wealth Index

Albeit arbitrary, the "net worth increase" method is a tax assessment technique recognized by courts. However, it should be used as a last resort by the tax authorities due to its many flaws and inaccuracies.

This method is used primarily when a taxpayer has failed to file income tax returns, produces a patently false tax return or refuses to comply with the requirement to provide the information necessary to establish the reliability of his/her tax return. It is based on an often incorrect assumption that the enrichment of a taxpayer over a given period is entirely due to its taxable income, (some or all of which was not reported). Therefore, the taxpayer must exercise his burden of proof to show that all or part of his/her net worth increase between these two dates comes from income not subject to tax.

At DUPUIS PAQUIN, we ensure that the use of the net worth assessment method is justified and that its arbitrary use remains within the limits specified by court.

To learn more about this service, see the "Net Worth / Wealth Index" section on the website of our sister company JURIFISC.

In this practice area, our team meets your needs in several ways, including:

  • Simulation of the "net worth increase" of business managers, professionals and the self-employed;
  • Review of tax authorities questionnaires used to establish a "net worth increase";
  • Support for taxpayers facing audits using the "net worth assessment";
  • Representation of business managers, professionals and the self-employed with tax authorities;
  • Negotiation of assessments based on the "net worth assessment" method;
  • Filing an objection to net worth assessments with the Chief of Appeals for tax authorities;
  • Appealing the decisions rendered by the Chief of Appeals for tax authorities confirming "net worth assessments".