Know about Voluntary Disclosure Program

1. Know about Voluntary Disclosure Program https://www.maroofhs.com/post/voluntary-disclosure-program-vdp-in-canada-come-clean-with-taxman/

2. As per the income tax laws and rules in Canada, tax residents of Canada must report their worldwide income. Often, taxpayers miss reporting their income or assets. Such non-compliance can be either intentional or unintentional. Taxpayers who have not reported their income in Canada when they should have, are always on the hook for penalties. If the amounts involved are not substantial, normal penalties apply. However, when the tax omissions cross certain thresholds or are intentional, there are gross negligence penalties and even criminal prosecution. CRA Voluntary Disclosure Program Luckily, CRA runs a program called the Voluntary Disclosure Program a.k.a. VDP. Under the voluntary disclosure program, taxpayers are granted relief from the penalties and the criminal prosecution. In some cases, interest amounts are reduced as well.

3. VDP Application Requirements For an application to qualify under the CRA VDP program, it must meet the following five conditions. The application must be voluntary. You cannot get relief under the program if CRA has already contacted you. It is purely voluntary. 2. There should be a penalty or potential of the penalty involved. If you are going to get refunds as a result of the application, it does not have to go through VDP. 3. The application must be complete. You must attach all the supporting documents, information returns and adjustment requests. Incomplete applications can result in the rejection and a disclosure together. As a result, you are not protected. 4. The information you need to correct must be at least one past year due. 5. You must pay your estimated taxes owing while applying. If you cannot pay, a payment arrangement request must be there.

4. General Vs Limited Voluntary Disclosure Program If your mistakes, errors or omissions are unintentional your application is processed under the General program. It provides you relief from the penalties and reduces interest charges. If CRA assesses that your omissions and mistakes were intentional, it will process your application under a limited program. Under the limited program, you get protection from criminal prosecution and gross negligence penalties only. How to file the VDP application? Fill out the form RC199 and attach all supporting documents, mail it to CRA. A good overview of the CRA Voluntary disclosure program can be found here. Maroof HS CPA Professional Corporation is a professional accounting firm in the Greater Toronto Area. As professional income tax accountants, it has successfully processed many Voluntary disclosure programs with Canada Revenue Agency.Ifyou are looking for a professional accountant with experience in VDP Applications, you can contact Maroof HS CPA Professional Corporation.

5. You can reach us at: 3-100 Hanlan Road, Woodbridge, ON L4L 4V8 Phone: (647)724-4308 Email: Canada@MaroofHS.com https://www.maroofhs.com/contact/ https://twitter.com/MaroofHS https://www.facebook.com/MaroofHSCPA