Voluntary Disclosure Program Screening

I received an interesting call late Friday afternoon from a Canadian taxpayer who wanted to know more about the Canada Revenue Agency’s Voluntary Disclosure Program.

She said that she thought she was being “swindled”.

She called a “tax solution” type business and they said that for $3,000.00, they would “investigate” as to whether or not she qualified for the program.

To which I asked her this question;

“Has the CRA tried to get you to file outstanding returns, either by phone or by sending letters to you?”

“Yes”, she replied.

“Then you do NOT qualify for the program” was my response.

And I saved her $3000.00.

If the CRA has already reach out to you – or attempted to reach out to you – regarding unfiled returns or unreported income, then your disclosure is no longer voluntary.

For more information, read up on the CRA’s Voluntary Disclosure Program, through the CRA’s website, here.    Or Google “CRA VDP” and refer to the websites beginning with http://www.cra.gc.ca, or http://www.CRA-arc.gc.ca/voluntarydisclosures

 

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Author: Warren Orlans

Welcome to the blog for Intaxicating Tax Services, www.intaxicating.ca. My name is Warren Orlans and I am the owner of inTAXicating Tax Services. With over 17-years experience in the taxation industry, 11 of them working for the Canada Revenue Agency (CRA), and the rest working in the private sector at large financial institutions responsible for resolving tax issues for corporations and individuals and the Canadian lead for a large US bank on FATCA implementation. My tax career began pretty much out of university at the CRA, in Collections, where I moved up, across, over and up again through their division with stops in Enforcement, Taxpayer Relief (then Fairness), Audit, Directors Liability, Training, Mentoring, GST, GST/HST, Payroll, Corporate Tax, Personal tax, and probably much more. If you have a collections, compliance or audit issue with the CRA, MRQ, IRS or with the CRTC, WSIB or any aspect of those agencies, inTAXicating is the place you need to contact. inTAXicating Tax Services has strategic partnerships which allows my team to include amazing tax lawyers, insolvency practitioners, mortgage brokers, debt counselling experts and much more. When dealing with governments, knowledge is power. We possess strong understanding of government so we know what the next step is before the government does. When you have a collections problem with the CRA, do you hire a graphic artist? No, you get a former collector who trained the staff, and who worked as a resource officer for 5 years. Then you know you are on the right track to resolving your tax problem(s). Others offer suggestions. We offer solutions! info@intaxicating.ca

3 thoughts on “Voluntary Disclosure Program Screening”

  1. There are news the VDP will be tougher after CRA completes a review by March 31, 2017. The review will be based on the recommendations by the Offshore Compliance Advisory Committee. With that in mind, if someone submits their VDP prior to March 31, would they be grandfathered under the old rules?

    Liked by 1 person

  2. Hi Josie. Great question!

    The news you hear about the toughening of the VDP regulations are specific to offshore accounts, and even more specific to those mentioned in the Panama Papers. The CRA is certainly feeling the pressure from the public about these hidden overseas accounts and have vowed to not allow them to use the VDP regulations to get away from paying penalties.

    What’s been missing from the public discussion about many offshore accounts is that either they have been reporting the income to the CRA or have been closed for too many years for the CRA to take legal actions against the registered owners.

    The best way to save face is to deny everyone from using VDP going forward.

    That being said, I do not see the regulations changing and thus no need to grandfather (or grandmother) anyone into the program as a result.

    Hope this helps!

    Warren

    Like

    1. Thanks for your quick reply Warren. It is just that I read the Committee concluded onshore and offshore non-compliance should be treated similarly. But if one reads the other recommendation “Less Generous VDP Relief”, it really seems to aim at sophisticated taxpayers with offshore accounts.

      Like

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