Voluntary Disclosures Program allows taxpayers to come forward and correct inaccurate or incomplete information or to disclose information they have not reported during previous dealings with the Canada Revenue Agency (CRA). Taxpayers may avoid being penalized or prosecuted, if they make a valid disclosure.
The Requirements for Voluntary Disclosure
The following conditions must exist for an individual or Corporation to use the Voluntary Disclosure Program (VDP):
- The disclosure must be voluntary. If you are already being investigated by CRA, it is too late. You must initiate the disclosure and contact the CRA before they contact you!
- The disclosure must be complete and accurate.
- The disclosure needs to involve a penalty. If no penalty exists, declare and file as usual.
- Disclosure must be information that is over one year old or, if less than one year, not simply employed as an attempt to use this program to file late and avoid penalty.
CRA has provided the voluntary disclosure program as a form of assistance to help those that have undisclosed information regarding their Canadian taxes, to come forward and work with the tax department to clear up these matters. Although this appears to be a good thing you really want to make sure that you have all of your tax information in proper order. CRA is not in the habit of advising you as to what your possible tax advantages are but an NLCA Associate is certainly able and willing to do so.
Please feel free to fill in the form on the top right hand side here to arrange for a FREE no obligation consultation.