The Canada Revenue Agency (CRA) is reminding taxpayers that they can use the Voluntary Disclosures Program (VDP) to correct mistakes and put their tax affairs in order.
Last week, the CRA posted a message to its web site encouraging taxpayers to come forward and take advantage of "a second chance to make things right". Those who have made a mistake on their taxes, or left out details about the income they reported on their tax returns, can use the VDP to disclose and correct their errors.
Disclosure must be voluntary
The CRA notes that anyone may use the program, including individuals, businesses, employers, payers, trusts, and estates. It does not matter if they are residents or non-residents of Canada. However, the disclosure must be voluntary, which is to say people must come clean before they become aware of the fact that the CRA is taking action against them.
Besides being voluntary, the CRA points out that there are three other conditions that a disclosure must meet in order to be valid:
- 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.
Voluntary disclosures can be made by submitting Form RC199 electronically through the CRA’s My Account or My Business Account web portals, or by writing a letter with the same information on the form, and sending it to the appropriate tax centre. More information about the VDP is available at www.cra.gc.ca/voluntarydisclosures.
As published in The Insurance and Investment Journal by Andrew Rickard April 1, 2016 01:30 p.m.
If you want to ensure that your financial plan keeps you onside with CRA, contact Four Points Financial Solutions at 1-866-235-0004 today.