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Got a fancy new car? Doing a major renovation to your home? Eating at a lavish new restaurant? Why not let all your friends know what you’re doing by posting this to your social media accounts?

It’s second nature to so many Canadians nowadays to post pics and updates of their daily lives to social media. Generally you’re hoping your friends are following you; secretly you’re hoping they’re envious of the exquisite lifestyle you’re trying to portray. But your friends and followers may not be the only ones peering into your life, the Canada Revenue Agency (CRA) may be checking you out as well.

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It’s called: Indirect Verification of Income and it’s an audit technique employed by the CRA. If your lifestyle and reported income don’t match up the CRA may decide to look into your affairs to see what’s actually going on.

So, for example, if you’re driving a luxury car, living in a high-income neighbourhood, sending your kids to private schools, and vacationing in Hawaii’s finest beachfront hotels but only reporting $45,000 of income on your tax return per year then you’re probably a great target for an audit by the CRA.