I just finished examinations for discovery of a Canada Revenue Agency (CRA) auditor (I was on my best behaviour). My client had a lot of income attributed to him for tax purposes, the evidence of which is almost nil. What was most interesting is CRA attributing to my client the money to pay taxes in the total income. In other words, if CRA says that you have $50,000 in hidden income, they say that you must pay taxes on the income and they increase the amount of the income by the taxes you should have paid and readjust the tax figure upward. Or at least that's what I think they did because the auditor, to his credit, honestly stated that she could not tell me the logic of the policy or the calculator, simply that it was the policy of CRA.