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How And Why VDP Canada Works

The CRA understands that not all taxpayers are up to date with their tax filing and payment and there are some taxpayers who would like to pay but not in a position to do so.  The VDP – Voluntary Disclosures Program gives taxpayers the chance to voluntarily admit that they owe taxes or they have not filed tax returns. As tax always has to be filed and paid, the VDP Canada comes in for people who have fallen behind. VDP Canada is a taxpayers’ preferred alternative to deal with tax problems such as late filing or unreported income.

The VDP Canada is easy to understand but not always easy to go through the process. For this reason you may find that you need help to get the best result when you apply. If the correct process is not followed there can be fines, interest added and even a freeze order put on your bank account.  If you have undisclosed tax problems and the CRA discover this themselves, it is unlikely that they will work with you to reduce tax owed.  If you own up and come clean about the fact that there are things you have not disclosed, then the VDP Canada will certainly work in your favor.

By entering VDP Canada, the principal amount will have to be paid back, and it is likely that the interest will also have to be paid. The good news is there will not be a late-filing penalties or even worse; prosecution. By working with a qualified tax consultant, you get better chance to be accepted by the VDP division and thus save yourself from hefty penalites.

In case you are not sure what is covered under VDP Canada, if you fail to report all earned income; not filing tax returns, claiming expenses that you are not entitled to and not submitting all source deductions.

Unfortunately just because you want to apply for VDP Canada, it does not mean that you are eligible. There are a number of criteria that must be met. Such as your disclosure has to be voluntary meaning that the CRA or other authority has not contacted you yet; the disclosure has to be complete meaning you disclose all the problems, not just partial. The disclosure must involve penalties; you do not need to go through the VDP Canada if you do not have tax owing or no penalties applying to you; Finally, if for late filing, it must be more than one year overdue.

Meeting with an experienced tax consultant will be helpful in that they will be able to properly guide you through to ensure the most complete and appropriate submission of your disclosure.

Making the Most Of The VDP

Knowing that there could be a solution to your tax problems will make life seem a lot better. If you are having trouble paying off all of your tax bills, then there is the Voluntary Disclosure Program – otherwise known as the VDP – that is there to help you. It is not the easiest process to follow and as a result you will be better off not going through the process on your own. You can take a lot of the stress and strain out of it by working with someone who has experience in this area, and will be able to guide you.

You need to be well organized, as with the VDP you need to have a lot of paperwork to submit and which disclosure you go for will determine which papers you need. Again it is going to be the professional who lets you know what you need and what is not going to be looked at.

You could find that you need the VDP for a number of reasons and it could be something as simple as not having filed your return on time, or not having filed it properly. You may not realize at the time that this is going to cause you a lot of problems, but as soon as you are contacted by the CRA they will make sure you know as they will tell you they need payment and that there are sanctions that they can pass making life quite uncomfortable.  It is for this reason that there are companies who can help and let you know if a VDP or other program will be best.

If you are wondering what the benefits will be if you get involved in the VDP compared with going it alone and just trying to pay the bill off, then think of the advantages of not having to pay back all of the penalties you have picked up. Once you have the bill and know what the CRA are expecting from you, then you will be able to determine what you gain from the VDP.  There will not be many times in your life when you are given a second chance and allowed to save money that you owe, so when this option is presented to you, take the offer seriously and don’t let it slip away. There are serious savings to be made so it is important you play the game properly and allow the experts to make offers and push the VDP process forward.

If you are concerned that this is not legitimate and there is no way that the CRA will allow you to pay less than you owe, then read up on the VDP and you will find out that it is a negotiated repayment system and it is for this reason that you are advised to employ someone with experience to guide you through. It is not all a one way system and you will have to agree to certain conditions, but it is still going to lead to you making substantial savings.

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!