The Canada Revenue Agency’s (CRA) voluntary disclosure program (VDP) allows taxpayer to correct inaccurate or incomplete information or disclose unreported information for up to 10 previous years. On March 1, 2018, the program was divided into two tracks: the general program and the limited program. Taxpayer’s who fall under the general program will be granted interest relief, will not be …
The Canada Revenue Agency (“CRA”) often applies penalties when a taxpayer has failed to comply with their obligations under the Income Tax Act, Excise Tax Act and other acts which the CRA administers.[1] The CRA can apply penalties for late-filing returns, repeatedly late-filing returns, failing to report income, deficiencies in foreign reporting obligations, for being grossly negligent, etc. Interest (currently, …
The Voluntary Disclosure Program The Canada Revenue Agency’s (CRA) voluntary disclosure program (VDP) allows taxpayer’s to correct inaccurate or incomplete information or disclose unreported information for up to 10 previous years. If a taxpayer’s disclosure meets the CRA’s conditions for the VDP, the taxpayer is not assessed penalties or criminally prosecuted with respect to the disclosure and the …
Foreign Reporting Requirements In the interest of enhancing compliance with tax laws, gathering information to verify compliance and to better target international tax evasion and aggressive avoidance, the government has established foreign reporting requirements. The foreign reporting requirements are found in sections 233.1 to 233.7 of the Income Tax Act. In certain conditions, the following must be reported: …
The Canada Revenue Agency’s (“CRA”) voluntary disclosure program (VDP) allows taxpayers to correct inaccurate or incomplete information or disclose unreported information. If a taxpayer’s disclosure meets the CRA’s conditions for the VDP, the taxpayer is not assessed penalties or criminally prosecuted with respect to the disclosure and the CRA charges reduced interest (in some cases). The CRA will only …
The Voluntary Disclosures Program (“VDP”) provides taxpayers a chance to bring their taxes up to date. This includes individuals, corporations, trusts, and partnerships. Any taxpayer can utilize the VDP to request that CRA reduce interest and eliminate the penalties that would have been applied against the taxpayer if their tax non-compliance had been discovered through an audit. There are four …
