It’s not too late to correct an earlier mistake
The Canada Revenue Agency (CRA) offers taxpayers a second chance to correct earlier mistakes and put their tax affairs in order through the Voluntary Disclosures Program (VDP). If you have ever made a mistake on your taxes, or left out details about income you reported on your tax return the CRA is offering you a second chance to make things right.
By filing a valid voluntary disclosure with the CRA, you only pay the taxes you owe plus interest. You may avoid penalties and potential prosecution related to the information accepted under the program. The disclosure must be voluntary, meaning it must be a valid disclosure that you file before you become aware that the CRA is taking action against you. If you need to correct your tax affairs, come forward now and take this opportunity to make things right.
A valid disclosure has to meet all four of the following conditions:
- it must be voluntary;
- a penalty must apply to it;
- the mistake or omission must be at least one year overdue; and
- it must be complete and include all the necessary information.
Anyone can use the Voluntary Disclosures Program, including individuals, businesses, employers, payers, trusts, and estates, whether a resident or a non-resident of Canada.
How do you make a voluntary disclosure?
You can also now submit Form RC199 electronically through the CRA’s secure portals: My Account, My Business Account and Represent a Client. Sending such material through the Submit Documents Online service is secure and reliable, and assists in the ease and efficiency with which documents are processed.
The first step is to fill out and sign Form RC199, Voluntary Disclosures Program (VDP) – Taxpayer Agreement, or write a letter with the same information on the form, and send it to the tax centre responsible for your disclosure.
However, you can also authorize one of our knowledgeable Chartered Professional Accountants to file the disclosure on your behalf, and save yourself from any potential headaches. Contact us at email@example.com or call 604-273-9338 today.
For more really useful tax tips, visit https://www.bccpa.ca/CpaBc/media/CPABC/News_Events_Publications/Publications/TaxTipsandRRSP/Tax-Tips-2015.pdf .
This post has been prepared for general information purposes. It is not advice. The information presented may not fit your unique situation, please consult one of our trusted business advisors at RHN CPA for further clarification and interpretation of your circumstances.