Moore Stephens
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Increased Tax Scrutiny for Canada’s High Net Worth: Issues for Wealth Management

The Canada Revenue Agency (CRA) has recently strengthened its monitoring program for High Wealth Tax (HWT) groups. This program targets individuals with a net worth of $50 million or more, representing a significant portion of Canada’s private wealth.

In 2023-2024, the CRA conducted over 700 tax audits, generating a total tax impact of $1.8 billion. The number of groups identified within this population has doubled over the past five years, now reaching more than 2,500. This program reflects a strategic priority: combating aggressive tax planning and tax evasion. This intensification of controls is part of a worldwide trend towards tighter monitoring of high net worth individuals.

To enhance its detection and compliance capabilities, the CRA relies on strategic partnerships and advanced technologies. In particular, the agency has developed sophisticated data analysis tools and strengthened its international collaborations to better identify complex tax planning schemes. This modernization of control methods goes hand in hand with an increase in resources dedicated to auditing high-asset files, demonstrating the CRA’s determination to ensure greater tax fairness.

Why Do you Need a Family Office?

A family office is your trusted ally in a tax audit. Here’s why:

  • It provides you with tax experts who have a perfect command of the regulations and can ensure that your tax returns are compliant;
  • It intelligently structures your assets to minimize risk, whether in investments or real estate;
  • It maintains rigorous documentation of your financial activities and responds effectively to requests from the tax authorities;
  • It defends your interests by connecting you to the best specialists for complex issues.

In short, the Family Office and your wealth management advisor relieve you of administrative stress while protecting your interests, thanks to expert management of your assets. This multidisciplinary team keeps a constant watch on your tax and wealth situation, enabling you to anticipate potential challenges and rapidly adapt your strategies in line with changing regulations. Their in-depth expertise and personalized approach guarantee ongoing optimization of your assets, while complying with current tax regulations.

Trust our firm and our portfolio managers to secure your assets

Navigating this complex tax landscape requires expertise. Our integrated, personalized approach ensures that your assets are not only protected, but also positioned for growth.

Contact us today to arrange a confidential consultation and discover how our personalized management services can help you optimize your financial situation. Our team of experts is here to answer your questions and help you protect your wealth.

More questions? We have the answer.

What Is Private Wealth Management?

A family office is often compared to an orchestra conductor, coordinating various aspects of wealth management to ensure the prosperity and continuity of family assets. It’s a set of personalized advisory services designed to optimize, develop and protect all your financial, real estate and professional assets. It encompasses several key aspects:

  • Wealth management : providing you with tools to ensure that your investments are aligned with your objectives;
  • Accounting, tax and legal advice: tax optimization, estate planning;
  • Family governance: maintaining family harmony, financial education of family members;
  • Concierge services: assistance with administrative and day-to-day tasks;
  • Philanthropy: helping you give back to society while maximizing tax benefits.

This comprehensive, personalized approach ensures that your wealth grows, while preserving it for future generations. A family office acts as your strategic partner in making the best financial decisions for your personal and professional goals.

How Much Does a Wealth Management Advisor (Family Office) Cost?

The cost of a family office can vary considerably depending on a number of factors, including the complexity of the services offered and the size of the corporate structure.

Our family office takes a transparent and flexible approach to billing. Unlike traditional models that charge a percentage of assets under management, we have opted for monthly billing based on the work to be done and the mandates entrusted to us by the family. Costs are adjusted according to the specific needs entrusted to us by the family. Our model therefore offers greater predictability and cost management for our customers. It also ensures that our customers only pay for the services they really need, while benefiting from personalized, efficient wealth management.

What Does a Wealth Manager (Family Office) Do?

The work of an asset manager revolves around several essential missions:

  • Analysis and evaluation;
  • Complete asset assessment;
  • Assessment of current financial situation;
  • Identification of the customer’s objectives and risk tolerance;
  • Consulting and strategy;
  • Development of customized management strategies;
  • Recommendation of suitable investment solutions;
  • Tax and legal optimization of assets;
  • Support and follow-up;
  • Active management of investments;
  • Regular adjustment of strategies according to market trends;
  • Personalized follow-up and periodic reporting ;
  • Protection and transmission;
  • Setting up heritage protection solutions;
  • Retirement planning;
  • Organizing transmission to future generations.

The wealth manager acts as a true financial orchestra conductor, coordinating different experts (tax specialists, notaries, accountants) to optimize the overall management of your assets.

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