CRA cracks down on the wealthy

Revenue Canada is busy sending out questionnaires to wealthy individuals who might be eligible for the related party initiative, but not all Canadians will benefit from the program.

PriceWaterhouseCooper’s private wealth group has put together a list of questions business owners can ask themselves to determine if they’ll be caught up in the dragnet.

Read: Keep your wealthy clients

If one or more of the following questions apply to your clients, suggest they call their tax lawyer, stat:

• Do you operate a business or hold assets in a tax haven with banking secrecy laws?
• Do you have a stake in an off-shore business that transfers property via trusts or partnerships at below-market value?
• Do you or a relative have a direct or indirect interest in a large family group, including through trusts or partnerships?
• Are assets you normally use for personal employment owned by a corporation, trust, or partnership?
• Have you had dealings with foreign tax authorities that could result in an exchange of information with Revenue Canada under existing tax treaties?

Read: Land wealthy clients

John Lorinc is a freelance journalist based in Toronto.

This article was originally published on capitalmagazine.ca.