Unfiled Tax Returns
A taxpayer who makes a voluntary disclosure or tax amnesty Canada application...
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Income Tax Voluntary Disclosure Application
Procedures for Filing
Formal written retainer to ensure privilege and confidentiality
The new rules in effect since 2018 normally require the tax returns to be submitted with the voluntary disclosure application
We formally retain accountant on your behalf to maintain solicitor-client privilege
Under the new rules in effect since 2018 generally speaking tax returns need to be submitted along with the voluntary disclosure application.
Planning to file a Voluntary Disclosure Application ?
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The Voluntary Disclosure Program, also known as Canadian tax amnesty, allows taxpayers with unfiled Canadian income tax returns or unreported income to correct incomplete or inaccurate information, or disclose information that has not been reported in previous dealings with the CRA (Canada Revenue Agency). Taxpayers can avoid being prosecuted or penalized by making a valid voluntary disclosure.
Tax problems ?
Fix the following through the Voluntary Disclosure Program
Unreported or unfiled GST/HST
CRA does not prosecute VDP applicants
There is no sinister "tax man" or "tax police" in dark glasses waiting to pounce on you and throw you in jail for tax evasion or not filing tax returns if you do a VDP Application. CRA does not prosecute VDP applicants. The purpose of the Canada tax amnesty program is to encourage Canadian taxpayers to voluntarily comply with their income tax obligations. Prosecution would be contrary to the goals of the VD program and contrary to the published guidelines (binding on CRA) that make it clear there will be no prosecution.
The latest published statistics shows that during 2012-2013, 71 income tax and GST/HST investigations were referred to the Public Prosecution Service of Canada (PPSC) for prosecution, compared to 120 cases in the previous year. As a result of referrals to the PPSC (current and previous years), 128 cases resulted in convictions for tax evasion or fraud in 2012-2013. 15,133 Voluntary Disclosures were processed in 2012-2013, while 14,624 Voluntary Disclosures were processed in 2013-2014.
These prosecutions were for taxpayers who were caught evading taxes, or who were sent requests and demands to file tax returns and ignored the demands. The prosecutions are NOT as a result of submitted VDP applications.
Income Tax Voluntary Disclosure Application Conditions to be met
Must be Initiated by YOU
To qualify under the program, you must initiate the voluntary disclosure or Canada tax amnesty application. If CRA has begun audit or enforcement action, or has demanded that returns be filed, the disclosure is not considered to be voluntary and full penalties will be applied. A computer generated request for a return may not always disqualify you from benefiting from the program.
Must include enough details
The disclosure must generally include tax returns with sufficient detail to allow facts to the verified.
Pay the total amount or Make acceptable payment arrangements
Under the new rules in effect since 2018 payment in full of the estimated taxes owing should be included with the voluntary disclosure application. Alternatively satisfactory payment arrangements may be an option.
Our experienced Canadian tax lawyers will work with you and the CRA collections officer to enter into a suitable payment arrangement or will refer you to a trustee in bankruptcy.
Your Voluntary Disclosure Application
When is it Valid?
- CRA determines that the disclosure is voluntary;
- The disclosure involves a penalty;
- CRA determines that the disclosure is complete;
- The disclosure must include information that is:
- At least one year past due, or
- If less than one year past due, not initiated simply to avoid the late filing or instalment penalties.
No-Names Disclosure
No names disclosures are no longer available under the new rules applicable since 2018.
Income Tax Voluntary Disclosure Application
When Incomplete ?
If the disclosure is incomplete, the disclosed information will be considered to be voluntary. However, the taxpayer will be subject to civil penalties or prosecution relating to any substantial undisclosed amounts. You are only required to make your reasonable best efforts to supply all necessary information
Planning to file a Voluntary Disclosure Application ?
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The Voluntary Disclosure Program, also known as Canadian tax amnesty, allows taxpayers with unfiled Canadian income tax returns or unreported income to correct incomplete or inaccurate information.