Tag Archives: Voluntary Disclosure Program VDP

Taking Part In The Canadian Voluntary Disclosure Program

It is easy to make a mistake if you fill in your tax return without professional help. It could be that you misinterpret what needs to be done, or just don’t put the figures in the right place. In Canada, the Canadian Voluntary Disclosure Program allows residents to contact the CRA and let them know about incorrect or inaccurate information that has previously been submitted. The sort of information that is allowed, will be details that has been incorrectly reported, or that was missed of the disclosure completely.

The Canadian Voluntary Disclosure Program is something that is open to any taxpayer, and this can be a business as well as a individual. It does not matter if you are a Canadian resident or not, an employer or employee and if you prefer, you can authorize someone to put in the disclosure for you. It is at times like this that there should be someone helping you. Had you employed professional help at the beginning, you may not be in this position, but at least you are getting the chance to put things right.

There are many things that you can disclose as part of the Canadian Voluntary Disclosure Program, and the areas that will be relevant to you will depend on the nature of you employment.  It can be late-filed information returns (e.g. T4, NR4, T4A-NR, T106, T1135, T1134), or GST/HST omissions, unreported source deductions, expenses that should not have been claimed, business income or unreported personal, from sources inside or outside of Canada and late-filed income tax (for example T1, T2) returns. This is not the full list, but will be appropriate for many returns.

If you are unsure as to whether or not you should take part in the Canadian Voluntary Disclosure Program, it is worth remembering that doing so could prevent you incurring penalties and even being prosecuted. You would need to pay the tax that you omitted paying previously but this is to be expected.

Before filling in the disclosure it is worth checking with your representative that you have all the information needed. There are a number of reasons for filling in this disclosure – not least the fact that it can stop prosecution. You must start the process before you are informed that there are queries being raised regarding your form, and it will relate to returns that are more than 12 months old.  If you do not a full and detailed submission in relation to the Canadian Voluntary Disclosure Program, your application for a disclosure can be refused.

If you are taking advantage of professional help, they will know where to send it, and it will include the need for you to fill in Form RC199, or provide the information in your own words. They will have to include Form T1013, Authorizing or Cancelling any Representative, or Form RC59,  and they must be signed. They will then send it to the relevant tax office dealing with the Canadian Voluntary Disclosure Program.

You will be notified of the next stages after about few weeks, and it is possible you will be asked for more information and this will be expected within 30 days of request. Next you will be informed as to whether the disclosure as part of the Canadian Voluntary Disclosure Program has been accepted or not.

The Taxpayer and the Voluntary Disclosure

When a taxpayer feels that the filing of the tax return was not so accurate, there are bound to be fears concerning possibilities of a CRA audit and assessment. This will also be the case for those employers who have not remitted their Sales Taxes or their payroll deductions. It will be a nightmare of suspense for an individual who has not bothered to disclose the earnings from abroad. All such people should actually thank the CRA for implementing the Voluntary Disclosure program.

Now, a taxpayer can rectify inaccurate or insufficient filing of tax returns without being afraid of penalties or prosecution. Voluntary disclosure allows these taxpayers to prepare and then assess the outcome of their disclosure. They can do this either on a named or even on an anonymous basis.

In the case of a named voluntary disclosure, the taxpayer will have to provide a Form RC 199 or a Taxpayer’s Agreement Form, along with the full postal code and other contact details that include the Social Insurance Number. In the case of an anonymous voluntary disclosure, the taxpayer will have to disclose only the first three digits of the postal code and the contact information of its representative, the gender and age of the individual, the taxation years and the reporting periods that are going to be involved in the voluntary disclosure. Other things that have to be disclosed are the amount of the correction in taxes, the type of the return which is involved, the type and the reasons for their earlier omission, the principal business activity of the submitter and how he or she will be able to meet the conditions of use set by the CRA.

There are several benefits to using the voluntary disclosure program. The principal one being the way it provides the taxpayers a safe method, relatively speaking, of rectifying the deficiencies in their previous tax return filings. The other biggest benefit is the prevention of the enforcement procedures special investigations into your financial affairs. The CRA will not take any action against the taxpayer if he or she discloses before an investigation notice of assessment or an audit is initiated. The taxpayers have to be aware that the consequences of a criminal prosecution can lead to a jail time of one year per charge along with penalties that may range anywhere from a thousand to twenty five thousand dollars. Many taxpayers have lost sleep and have suffered emotional stress from this burden.

People who avoid thinking about voluntary disclosure have to be aware that the penalty for late filing on the first offence is five per cent of the balance of the taxes that is outstanding and one per cent for every month that the balance will remain outstanding to a maximum period of one year. For any additional offence, the penalty goes up to ten per cent of the balance which is outstanding and two per cent for every month to a maximum period of twenty months. Interest is also added to the principal amount and it is charged in the next month.

Need Tax Amnesty Agents to Help You with the CRA?

The Canada Revenue Agency (CRA) has a Voluntary Disclosures Program to assist taxpayers with disclosing information about prior tax affairs that need to be resolved. If you live in Toronto, the York Region or the Durham Region and you are delinquent due to known inaccuracies, incomplete information or a failure to submit your income taxes, Tax 911 Now will assist you in making disclosure to the CRA. The professional tax amnesty agents at Tax 911 Now can shelter you from late filing penalties and prosecution through the program. In some cases, Tax 911 Now may negotiate a reduction in interest on your behalf. 

 

Tax amnesty agents are the experts

In order to qualify for amnesty, a written submission that discloses your tax liability must be voluntarily provided to the CRA. Participation in the tax amnesty program is totally dependent upon your voluntary disclosure. As such, you must initiate disclosure before an enforcement action is levied against you. If you wait until an enforcement action has been initiated against you, your disclosure is no longer considered voluntary. Tax 911 Now will initiate your voluntary disclosure by providing the CRA with properly documented disclosure information and any necessary supporting documentation. Without proper documentation, your request for amnesty may be delayed or declined.

Toronto area Tax 911 Now tax amnesty agents are experts in getting you amnesty for your personal or business income taxes, GST/HST and charges due and owing under the Income Tax Act. Voluntary disclosure becomes effective on the day that Tax 911 Now amnesty agents contact the CRA on your behalf. A partial disclosure of information is sufficient to establish an effective disclosure date, but you may still be subject to penalties and prosecution for the undisclosed portion of your tax obligations if the undisclosed amount is considered to be substantial. There must be some agreement with the CRA regarding when the undisclosed information will be provided.

 

Contact tax amnesty agent now before it is too late.

If you are in the Toronto area or other areas across Canada, such as Calgary, Vancouver, etc. and have outstanding tax obligations, you need to contact Tax 911 Now and set up a time to speak with one of our dedicated tax amnesty agents before the government becomes aware of your tax delinquency. That is not to say that you will have no financial responsibility under tax amnesty. You will still be responsible to pay any outstanding taxes owed as well as any applicable interest assessed on the delinquent tax amount at the time of the disclosure. No late filing penalty will be assessed. What you will be given amnesty for is late filing penalties, civil penalties and prosecution. In some cases, a reduction in the assessed interest may be negotiated. The only exception is if it is voluntarily disclosed that you failed to file your return, as opposed to under-reporting income or misappropriating funds on a filed return, you will only be responsible to pay the tax amount owed for that filing.

 

Payment Plans

You should be prepared to pay your tax obligation, although decreased, in full immediately or request that your Tax 911 Now tax amnesty agent engage you in an affordable payment arrangement. Tax 911 Now agents are expert negotiators who will assess your finances and negotiate the most affordable payment schedule based on your financial situation. Scheduled payments may then be paid directly to the CRA.

If you are located in Toronto, the York Region, the Durham Region or other regions across Canada, call and talk to one of our dedicated and professional tax amnesty agents. Call Tax 911 Now team at 1-877-918-2991.

Need CRA Tax Amnesty VDP in Toronto?

The CRA Voluntary Disclosure Program, also known as VDP or CRA Tax Amnesty Program, will help taxpayers get a considerable boost that they can use to get over any tax hurdles. VDP can also be a confusing process, since the process may require several different types of paperwork depending on which type of disclosure you choose. All of these are excellent reasons why someone will want to get help from professionals like Tax 911 Now.

Why Consider CRA VDP or Tax Amnesty Program?

Just about anyone could suddenly find themselves having tax trouble with the Canadian Revenue Agency (CRA). They may have simply forgotten to file tax returns due to life circumstances or missed some information unknowingly when filing tax returns. This may have some surprisingly difficult consequences that you will need to deal with as you move forward. If you live in the Toronto, York Region, Durham Region and more areas, you will want to take a look at the resources at your disposal. Consider contacting Tax 911 Now if you would like to get the help you need to move forward. Tax 911 Now can provide a number of viable options under CRA Tax Amnesty or VDP program to reduce your overwhelming tax burden.

The Benefits of CRA Tax Amnesty or VDP Program

You might also be wondering what tax benefits you could get out of this tax amnesty or VDP program. To understand this, you may need to find out how much money you might owe to the government. They will expect that you pay this back with penalties, unless you enroll in an amnesty program. Many people can save quite a bit of this money if they get approval with  CRA tax amnesty or VDP program.

Some people might be a little skeptical and curious how a CRA tax amnesty might work for them. These programs will typically be negotiated with the Canadian Revenue Agency once you get started. Sometimes, the agency will be able to waive all penalties or some of the interest that you owe to them. This will typically be in exchange for fulfilling a few different provisional agreements. If you follow through some of these provisions of CRA tax amnesty, you will be able to save a substantial amount of money.

Call Tax 911 Now to get help with CRA Tax Amnesty or VDP program.

Finally, be sure to get an initial consultation with an agent through Tax 911 Now about CRA VDP / tax amnesty. They can give you some good advice about what you might be able to expect to get. Anyone who lives in the Toronto, York Region, Durham Region and more will want to think about getting these services. Call 1-877-918-2991 before it is too late.

Voluntary Disclosure Program (VDP)

As the Canada Revenue Agency (CRA) moves forward to aggressively address non-compliance on unreported income or unfiled taxes, it becomes more important that you need to be aware of the Voluntary Disclosures Programs (VDP)

In cases of gross negligence, the Income Tax Act allows the CRA to assess a penalty of up to 50% of the unpaid tax or the improperly claimed benefit. In addition, the court may, on summary conviction, fine them 50% to 200% of the tax evaded, and sentence them to a jail term.

You need to quickly come to us before CRA initiates any action against you.  As soon as CRA initiates the contact, then it is too late. It could be one letter in the mail, one phone call, one personal visit, etc.

Voluntary Disclosure Program (VDP) Can Be The Perfect Solution

It could be just ONE day late, you lose everything and more! What You Need to Do Now to Fix Your Tax Problems Rather than Getting Your Life Ruined? – Voluntary Disclosure Program (VDP)

If you have unreported income, under-reported income, years of late filing with tax owing, then you cannot afford to wait any longer! Do something to resolve your tax problems TODAY!

Hire someone who is qualified and has the experience to help you solve tax problems. Many people try to handle their tax problems themselves, resulting in negative results because they do not understand the complex Voluntary Disclosure well. Keep in mind the Voluntary Disclosure Program (VDP) is more than just a simple form.

We have helped clients in reducing their tax damage by filing voluntary disclosure program (VDP) and negotiated excellent settlement for them. See what happy clients say about our Voluntary Disclosure service in the testimonial.

Do you need VDP services in other parts of Canada? Here is where our services are offered:

  • Toronto
  • Markham
  • Vancouver
  • Calgary

Our initial consultation is FREE and CONFIDENTIAL. You will get comprehensive analysis of your tax problems and recommended solutions in the first meeting. Then you can decide what to do from there.