LOPRESTI LAW

Have you filed a tax return and then later discovered that it was incomplete or incorrect? Have you fallen behind your tax filings? If you wait until the Canada Revenue Agency (the “CRA”) requests an audit or takes enforcement action against you, it will likely be too late to qualify under the CRA’s Voluntary Disclosures Program (the “VDP”).  If the Canada Revenue accepts a taxpayer’s disclosure under the VDP, then the taxpayer will not be prosecuted criminally for any of the errors or omissions made and the CRA would also provide penalty and some interest relief for the amounts being corrected or reported. The extent of the penalty and interest relief that is granted under the VDP will depend on the circumstances of each taxpayer’s case.

 

Please Note: the CRA has recently made changes to its VDP.  

 

The CRA has published revised guidelines IC00-1R6, dated December 15, 2017, which outlines the changes the CRA has made to the VDP. The new guidelines apply to all voluntary disclosures that were submitted to the CRA on or after March 1, 2018. 

 

One of the more significant changes to the VDP is that the CRA has established two different streams of voluntary disclosure, one stream is called the General Program and the other stream, the Limited Program. When a taxpayer makes a voluntary disclosure he or she has to disclose the material facts relating to the disclosure and provide whatever tax filings are required to rectify the taxpayer’s past errors or omissions. After reviewing the pertinent facts surrounding the disclosure, the CRA then makes a determination of whether the taxpayer qualifies for the VDP and if so, which stream the taxpayer’s voluntary disclosure would fall under.

 

Consult LoPresti Law to find out more information about the CRA’s Voluntary Disclosures Program and whether the circumstances of your case would qualify under the VDP. We would also be pleased to work with your accountant to guide you through the process. If you do not have an accountant, LoPresti Law has worked with many experienced accountants and can recommend one that best suits your needs.