ARQ Net-Worth / Indirect Audit — Montreal CPA Firm Near You: Rebuild Lifestyle Proof

An ARQ Net-Worth or Indirect Audit (Vérification indirecte du revenu) is one of the most demanding and intrusive audits performed by Revenu Québec. When your declared income appears inconsistent with your spending, asset growth, or lifestyle, ARQ applies the “net-worth method” to reconstruct income indirectly—using bank statements, mortgage data, and personal expenditures. Mackisen CPA Montreal provides expert representation to rebuild your financial story with accuracy, transparency, and legal compliance, protecting you from unfair reassessments.

Legal Foundation

Law: Tax Administration Act (Québec) ss.1014–1017 (indirect audit methods and presumptions of income).
Jurisprudence: Giguère v. Canada (1992 FCA) — confirmed the validity of net-worth assessments but required auditors to respect procedural fairness and reasonable assumptions.

Why You Need a CPA for an Indirect Audit

An indirect audit doesn’t start with your books—it starts with your lifestyle. ARQ compares declared income to your home purchases, vehicles, vacations, and personal expenses. Even legitimate sources of funds, like gifts or inheritances, can be misinterpreted as undeclared income if you don’t provide immediate proof. Mackisen CPA Montreal reconstructs your net worth using verified documentation, ensuring every dollar is traced to a lawful source.

Learning insight: ARQ doesn’t just audit money—it audits behavior. A CPA translates your financial reality into verifiable proof.

What Mackisen CPA’s Net-Worth Audit Defense Includes

• Full reconstruction of income and expenses for the audit period.

• Tracing of all bank deposits, e-transfers, and asset acquisitions.

• Proof of non-taxable sources (inheritances, loans, insurance, gifts).

• Preparation of detailed lifestyle and personal-expenditure statements.

• Legal analysis to challenge unreasonable ARQ assumptions.

• Submission of CPA-certified reconciliation reports to auditors.

Learning insight: When ARQ guesses, you lose. When you document, you win.

Common Triggers for ARQ Net-Worth Audits

• Asset purchases (home, car, or investment) exceeding reported income.

• Frequent large bank deposits or unexplained transfers.

• Lifestyle patterns inconsistent with declared tax levels.

• Information from third parties, such as mortgage lenders or notaries.

• Anonymous complaints or data cross-matching under Revenu Québec’s AI risk-detection system.

Mackisen CPA Montreal identifies potential discrepancies early and eliminates assumptions before they become audit conclusions.

How Mackisen CPA Manages Net-Worth and Indirect Audits

1. Conducts an initial forensic review of all personal and business accounts.

2. Reconciles income, savings, and expenses over multiple years.

3. Categorizes every deposit and withdrawal by taxable or non-taxable source.

4. Submits evidence (loan agreements, inheritance letters, sale contracts) to ARQ.

5. Drafts professional objection responses if the auditor’s report inflates taxable income.

Learning insight: ARQ can assume—but a CPA can prove. Facts defeat formulas every time.

Benefits of Professional Representation

• Replaces estimated income with verified calculations.

• Prevents double taxation on legitimate savings or loans.

• Avoids gross-negligence penalties based on presumed income.

• Protects both personal and family financial privacy.

• Ensures audit conclusions align with legal evidence, not speculation.

Learning insight: An indirect audit is a financial mirror—without a CPA, it distorts your reflection. With a CPA, it shows the truth.

SEO Optimization and Learning Value

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Learning insight: The ARQ algorithm measures lifestyle risk; Mackisen CPA measures legal proof. One guesses—one guarantees.

Real Client Success

• A Montreal family avoided a $210,000 reassessment when Mackisen CPA proved home renovations were financed by a parental gift, not undeclared income.

• A self-employed consultant cleared an ARQ indirect audit after our CPA team demonstrated non-taxable loan proceeds from a relative.

• A retail entrepreneur overturned an $80,000 “lifestyle discrepancy” after Mackisen CPA reconstructed every personal and business transfer across three years.

Why Mackisen CPA Montreal

Mackisen CPA Montreal’s audit-defense team combines forensic accounting, tax-law expertise, and data analytics to protect clients in lifestyle-based audits. With over 35 years of combined CRA and ARQ experience, our firm has resolved dozens of indirect audits with full taxpayer exoneration.

Learning insight: Audits built on assumptions collapse under evidence. Mackisen CPA builds evidence so solid it ends the argument.