Voluntary Disclosure Program; CRA that can either save you or destroy you!

TORONTO - Jan. 15, 2019 - PRLog -- The CRA, as a policy matter, warns those individuals who have unreported incomes in the previously filed returns. If you approach CRA for the correction before they come to you, there will be a relief from criminal prosecution and penalties. We have seen people scared of their tax situations. But there is no need to be worried about because Chartered Professional Tax Accountants and Tax Lawyers can confront such situations prudently and guide us to make the best tax decisions.

In some exceptional cases; if you are unable to pay your taxes or penalties, the CRA may waive some penalties but that depends on the sole discretion of the CRA.

Voluntary Disclosure Program (VDP) is a CRA's administrative program that promotes compliance with Canada's tax laws by encouraging taxpayers to come forward voluntarily and correct all previous errors and omissions in their tax affairs. The VDP application has 02-streams i.e. Income tax stream and GST/HST stream. The VDP application acceptance criteria are the same in both streams. The new VDP introduces 02-tracks program for voluntary tax disclosures in each stream. There will be a Limited program that has the element of intentional conduct, but it will provide relief from criminal prosecution and penalty is restricted with no interest relief. On the other hand, there will be a General program that has the element of unintentional conduct and there is a full penalty but partial interest relief.

Following are the income tax and GST/HST Disclosures that can made on case to case basis:

Income Tax Disclosures

1.       Expenses claimed not eligible

2.       Failure to remit source deductions

3.       Failure to fill information returns i.e. T4/T5

4.       Underreporting of income

GST/HST Disclosures

1.       Undisclosed tax liabilities

2.       Improperly claimed ITCs

3.       Refunds or rebates

4.       Unpaid tax or net tax from previous reporting period to CRA

5.       Disclosures may also relate to Incomplete info on a return & failure to file information return i.e. T4/T5

Taxpayers will have 90 days' time limit for providing information and documentation for the disclosures so that the application is not rejected and the Effective Date of Disclosure (EDD) is the day when the CRA has received the completed application submitted by your authorized Canadian tax lawyer.

Not reporting income to CRA is a form of tax evasion which is a serious crime. This can result in extremely large fines making re-payment very difficult. Failure to report income may result in several different penalty categories with CRA. The CRA can also pursue charges against a taxpayer which can result in imprisonment.

The plot in a nutshell, the VDP provides taxpayers with a potential avenue to reduce or eliminate penalties and some interest which might otherwise be assessed by the CRA and avoid prosecution in respect of under-reported or unreported income and other tax errors and omissions. The effective use of this program will save you more and you can live a respectable life otherwise unreported incomes may destroy you. Choice is yours!

GTA has professional tax accountants, who have immense experience in all the financial services in Toronto & Mississauga. Contact us +1 (416) 900 3826 (tel:4169003826)
visit us at https://www.gtaaccounting.ca/tax-accountant-toronto/