Bad News From Canada Revenue Agency (if you have been naughty with your taxes…)
For many years CRA has had a “voluntary disclosure program” for taxpayers to ‘come clean’ if they have not included taxable items in their tax returns. The problem may have resulted from an oversight, like forgetting about a capital gain or from a belief that income earned in outside the country is not taxable in Canada.
Under the voluntary disclosure program “VDP”, CRA was willing to waive late filing and gross negligence penalties and provide relief on interest charges. Their rationale was that CRA did not have to incur costs of investigation or prosecution of the offenders.
In June 2017, CRA proposed to make significant changes to the VDP process which significantly narrows the eligibility for relief. These changes are effective for VDP submissions AFTER February 28, 2018. So, if you have any concerns that your tax returns filed in a previous year are incomplete, please contact us as soon as possible to help you reduce your exposure to serious consequences.
Jerry Paskowitz is a Partner with Sloan Partners with over 30 years’ experience in all tax and financial matters. Get in touch with Jerry by email or phone (416-649-7702) for an appointment to discuss tax savings opportunities and financial strategy for your business.