Canadian taxpayers with offshore assets and accounts are legally bound to reveal these interests to the Government on their Individual Tax Returns, and file a corresponding Form T1135, Report of Foreign Bank and Fiscal Accounts. If CRA agents discover that someone has not noted an interest in an offshore account or revenue accruing on such balances during the course of an audit, the CRA may impose large fines. These fines, formulated with curiosity and fraud fines, can essentially wipe-out the Canadian’s international assets. In addition, citizens may be vulnerable to criminal prosecution and jail prison term for tax-evasion.
Voluntary Disclosure Program Canada
The CRA introduced the Voluntary Disclosure Program Canada to encourage individuals to disclose their unreported income, unfiled taxes and unreported foreign assets in exchange for the promise of lesser fines or no criminal prosecution. A huge number of Canadian taxpayers with formerly undisclosed offshore assets chose advantage the Voluntary Disclosure Program Canada because of the numerous advantages it brings with it.
Even though it may be long overdue to apply to the CRA Voluntary Disclosure Program Canada, there’s still chance to declare a voluntary disclosure under the CRA typical requirement. You’ll find many positive outcomes to file since it is better to come out on your own than being caught by the CRA. A voluntary disclosure program allows taxpayers with formerly undisclosed overseas assets dodging the undesirable civil criminal prosecution and penalties.
Also, people that have undisclosed offshore balances should know the voluntary disclosure program Canada is complex and sensitive. Canadian taxpayers are encouraged to contact a tax consultant who is experienced at concluding differences of opinion with the CRA as promptly as to ascertain and find out whether or not to file a voluntary disclosure CRA.
For instance, if a Canadian taxpayer is already contacted by the CRA, it may be too late to file a voluntary disclosure application. Hence, time is an important factor since the CRA continues its pursuit of undisclosed offshore account-holders. Seeking recommendations of suitable tax advice certainly is in their own best interest.
For more detailed information on Voluntary Disclosure Program Canada, it is important to seek the services of a highly experienced adviser in matters of civil and criminal tax consequences amongst other Canadian tax problems.