Do you need help getting your tax affairs in order without penalty or prosecution?
The Voluntary Disclosures Program (VDP) is a broad-based program administered by the Canada Revenue Agency (CRA) that is aimed at permitting taxpayers to disclose historically inaccurate or incomplete tax reporting under a variety of circumstances in exchange for potential penalty (and, in limited circumstances, interest) relief. Subject to certain qualifying conditions, individuals, trusts, and corporations can utilize the VDP to disclose previously unreported domestic or foreign income or assets including undisclosed offshore bank accounts.
The voluntary disclosure program (VDP) allows a corporation to correct their tax affairs with the Canada Revenue Agency (CRA) without penalty or prosecution. This can include:
- Unreported or under reported income from a business
- Unreported capital gains
- Any error made on a previously filed tax return
These applications with the CRA can cover both income tax and GST/HST.
At Fred Albi, Chartered Professional Accountant, we can assist you with these questions below and help you through the process:
- How do I make a voluntary disclosure and where do I send it?
- What are the conditions for a valid disclosure?
- What is accepted and not accepted under the VDP?
- Can I make an anonymous disclosure?
- What should I expect after I make my disclosure?
- When should I pay what I owe?
Once your VDP application has been submitted and CRA has agreed to accept…
- Late tax returns
- Undisclosed income
- Amended returns with previous errors
- Adjustments to returns with expenses that should not have been declared and more…
The corporation will not be charged for penalties, interest on the penalties charged, or prosecute you.
We do not recommend you try a Do it yourself project for this type of disclosure. You have only one chance to get it right and CRA has skewed the program to look great politically(CAN YOU COME UP WITH OTHER WORD) but is full of legal fine print traps that will exclude you. VDP is an official CRA program – we highly recommend that you have your application prepared and submitted by a professional.
To qualify under the voluntary disclosure program, you need to meet the following 4 key criteria:
The voluntary disclosure must …
- Be voluntary – the CRA cannot have contacted you in any way about your tax problem
- Involve taxes that are at least one year old
- The tax debt associated with the voluntary disclosure must be subject to a penalty
- Be complete – no information can be omitted and all forms and documentation must be provided
If you would like to speak with us about a VDP application, please contact us for a complimentary quote today. We will help you put your corporation’s tax problem behind you.