"How can you manage such a vehicle on your reported $13,000 Euro income you have reported for the last 3 years?"
The CRA (Canada Revenue Agency) has started using neighbourhood land values to target people for audits, if the owners don't have a matching income to afford their $2m house.
See number 8 here:
https://gowlingwlg.com/en/insights-resources/articles/2013/top-ten-cra-audit-flags/
I am not sure how they can sort through all the odd cases, though. Inheritance, job loss, or mustachianism could all throw off the "usual" income/asset balance.
It's the 80/20 rule, though-- 80% or more of the time, the home was bought with foreign assets and there is foreign income supporting the household.
The taxes at $20,000/yr on a $15k/yr income? That's a red flag, even if the home is inherited.
It's pretty easy to look into the the 20% cases and realize what you have immediately -- e.g., a senior now retired or a person who used to make a lot and is now on disability, inheritances, etc.
What they are trying to find -- Wife and kid(s) move to new country to get kids in high school, to live in a nice green area of the world with little pollution, get local graduation diploma and apply to local prestige university as residents. Get citizenship / passports after about 5 years from the start of this, (security against chaotic political climate at home) meanwhile husband is working overseas, has lots of overseas assets. So far nothing wrong with this and fully AOK all around as they did all the proper applications.
BUT
Maybe (likely! 80% rule?) Family does not report family net world income, only Cdn sourced income and therefore receives a lot of subsidies, breaks on taxes, free base healthcare and payouts from the government. They pay extremely little tax to the country they are living in, and don't really help support the local economy tax-wise other than buying things and driving up home prices. The father now has moved back to original country, but Canada considers him to be substantially tied to and a deemed resident to Canada because his whole family is permanently residing there, therefore he needs to send in a tax return, too showing his income, taxes paid elsewhere to figure out net taxes owing to Canada.
Family meanwhile living in a $2m home and can easily afford the taxes each year, the nice car(s), etc all on a declared income of $15k for a household of 3 persons.
IMO, everyone who lives in a region should pay for their regional benefits through taxes, according to their actual incomes, up to a maximum. Libraries, rec centres, roads, parks, schools, public landscaping, healthcare are all heavily subsidized by the government here, through taxes.
This is why I am hugely in favor of sales taxes (consumption taxes excluding essential items) and lower income taxes. Pay as you go, according to what you can afford to actually spend. It is an indirect tax on having huge assets, but only if/as you choose to spend.
Monthly sales tax rebates of a set amount per person will reduce the impact of sales taxes lower income situations, contrary to conventional arguments that sales taxes hit lower income people more.