What is the Voluntary Disclosure Program?
Have you ever encountered a situation where you have had issues when you have done your own taxes? Perhaps you left a few things out on your income tax return or perhaps you’ve made mistakes when filing one year. Instead of being put in a situation where you are unable to fix these mistakes and essentially right your wrongs, the Canada Revenue Agency (CRA) now offers a second chance for you to correct them.
The Voluntary Disclosure Program allows individuals to correct any intentional or unintentional mistakes that they have made on their tax returns in order to redeem themselves and be able to know that their tax returns are now legal. With the ability to sufficiently complete your taxes, you can become one of the many Canadians that pay their taxes in full.
With that being said, there are certain conditions that you need to be aware of before you decide to use the Voluntary Disclosure Program to your advantage. The main condition is that your choice for complete disclosure must be voluntary, meaning that you couldn’t have received information about the CRA taking action against you. Also, the tax information that you neglected to put into your return must be at least a year overdue and the information also has to be 100% complete.
Once you have submitted your disclosure you will be responsible for paying back the total amount of money that you owe to the CRA. If you find that you are unable to do so, the total amount remaining will continue to gather interest until the CRA is given the total amount owed. You will receive a letter in the mail approximately 2 weeks after your disclosure submission has been received and there will be further information about what your next steps should be in the process.
One of the largest benefits associated with the Voluntary Disclosure Program is that absolutely anyone can do it, whether it is an employer, corporation, or even a trust. Also, if you are uncomfortable with disclosing the information on your own, you can choose a representative to make the disclosure for you to ensure that it is completed in full and correctly.
If you need help with understanding and filing for the Voluntary Disclosure Program, call TDS Lawyers today. We are your trusted Income Tax Lawyers in Surrey BC. We work with former Canada Revenue Tax Auditors with over 30 years of experience. Call us today.