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Taking Advantage of Tax Amnesty Offer by the CRA

When there is a situation where you have to take up the tax amnesty offer provided by the CRA, it is advisable to seek expert professional advice on these tax matters. Tax amnesty offers a second chance to the Canadian residents who have not filed their taxes regularly and are feeling nervous about it. After all, it can be deemed as a criminal offence if you do not file your tax returns.

Many taxpayers, whether they are individuals or business corporations, have a cause to worry if there are any unfiled tax returns or cases of income which have not been reported accurately. There may have been cases of overstated expenses too. There is a tendency that if a taxpayer does not file an income tax return for any single year, he or she try to hide while filing subsequent returns of taxes. They are scared of the possible consequences and the reaction from CRA.

The tax system in Canada is self-assessment based. It means that the residents are required by law to file their income tax returns and also include all their sources of income that involve foreign earnings or other offshore income. As the system is rather complicated, many taxpayers evade from reporting deliberately.

Taking the tax amnesty route is a possible way for the taxpayers to declare by coming forward all their tax returns which they had not filed earlier. There are few tax firms in Canada that specialize in handling tax amnesty and voluntary disclosure program. They deal with the CRA to prepare tax returns and to file for tax amnesty for their clientele.

Any taxpayer who has not filed his or her income tax returns or not filed GST returns can take advantage of the CRA’s tax amnesty offers. This stands true in cases of income which has not been reported accurately previously, involving tax evasion or earnings from illegal activities. This is the same as using voluntary disclosure or a tax pardon program.

When CRA offers a tax amnesty program, the situation is not something that has to be met with nervousness. By filing a voluntary disclosure and coming forward to report their undeclared income, taxpayers can breathe easy with relief as the process is not unpleasant, particularly when they have their accounts represented by professionals. In the bargain, they also avoid civil or criminal prosecution. They will also save themselves from penalties and have their interest charges reduced.

A taxpayer qualifies for the tax amnesty offer only when

  • CRA establishes that the disclosure is voluntary and that it is accurate and complete.
  • The disclosure involves a penalty.
  • The disclosure includes information which is at least a year past or earlier.

The disclosure by the taxpayer has to be done before CRA approaches that particular taxpayer with a demand to file. The disclosure should not be just to cover up late filing under a year from the due deadline for the purpose of avoiding late filing penalties or prosecution. To be eligible for the Tax Amnesty program, all the conditions above need to be met.

 

Tax 911 Now and Tax Amnesty

Falling behind on your taxes is never desirable. However, sometimes there isn’t much you can do about it. Whether you forget to file or you just don’t have the money to pay the taxes, eventually you might lag behind and, without notice, the government can come knocking on your door. Nobody wants to deal with the government and taxes, but if you are behind, that is exactly what is going to happen. Before the government comes calling for the taxes, it is time to give us a call. At Tax 911 Now, we are able to work with you and the government in order to negotiate through tax amnesty program that can control the damage from tax trouble. A tax amnesty is something that is going to drastically help you reduce the amount of money you have to pay. 

 

What is Tax Amnesty?

When it comes to under-reported taxes or falling behind, there is generally a limited window of opportunity for taxpayers to be able to apply for the tax amnesty program to avoid prosecution, get penalties waived and even have interests reduced. With the help of a professional tax team like we have at Tax 911 Now, the government brings down the amount taxpayers may owe. There are different circumstances that bring about the tax amnesty, with our help, you can find out if you qualify and if it is something that is suitable for you to go through.

 

What are the Benefits?

There are several benefits of tax amnesty. For starters, you do not have to pay the penalties amount that you normally would. On top of this, you do not have to worry about criminal prosecution, the interests may not be as big when paying the amount back. This way, you only have to pay the set amount back determined by the tax amnesty and no more. This is, of course, as long as you are honest with your tax information. If you make false or incomplete claim, CRA may come back later to audit, you might run into more serious tax issues.

Contact Tax 911 Now before CRA contacts you. Keep in mind, to qualify for the tax amnesty, you need to voluntarily disclose your tax issues. If CRA sends a letter or makes a call to you, then it is too late. You will have no choice but to face heavy penalties, or worse, prosecution. Call us at 1-877-918-2991 Today before it is too late!