The lawyers in the Tax Law Group represent clients who have unreported or underreported their income to the CRA or have failed to comply with other tax obligations, such as the requirement to disclose foreign business assets worth more than $100,000.
The CRA Voluntary Disclosure Program allows taxpayers to come forward voluntarily to amend previous tax filings or advise the CRA about unreported income, off-shore assets, or any other unsatisfied tax obligations.
If a taxpayer’s Voluntary Disclosure is accepted by the CRA, the disclosure will be considered “valid” and the taxpayer will not be charged with penalties or criminal prosecution. Additionally, the CRA has the discretion to grant interest relief. For Voluntary Disclosures that extend beyond the three most recent taxation years, interest relief is typically granted.
The Canadian taxation system is a self-reporting system. The program applies to taxpayers who either intentionally or unintentionally misfiled their tax filings. The voluntary disclosures program is a good option for taxpayers who wants to bring themselves into compliance with Canada’s federal tax laws.
To qualify as a valid voluntary disclosure, your disclosure must comply with the following conditions:
- The disclosure must be voluntary. If the CRA has contacted you with respect to an audit, investigation or enforcement action, your disclosure will likely not be voluntary;
- The disclosure must be complete. If you come forward, you will need to provide full and accurate information and documentation regarding the years in issue;
- The disclosure must either involve a penalty or the potential imposition of a penalty; and
- The disclosure must include information that is at least one year past due.
Dealing with the CRA’s Voluntary Disclosure Program on your own can be daunting. The tax lawyers in the Tax Law Group have extensive experience assembling submissions, negotiating with the CRA employees in the Voluntary Disclosure Program and ensuring compliance with the Program’s rules.
Our tax lawyers can assist you with initiating a voluntary disclosure on a no-name basis. This allows our tax lawyers to speak to the CRA on your behalf on a no-name basis at the preliminary stage. You would then have the option whether or not to complete the voluntary disclosure and provide your name.
Consultations with our tax lawyers are protected by solicitor-client privilege. We are obligated not to divulge the contents of those discussions and cannot be forced to reveal those discussions except in the rarest of circumstances. Many of our Voluntary Disclosure clients are referred by prudent accountants and financial planners who are aware that the rules of confidentiality that apply to their professions do not provide the level of discretion that a solicitor can provide.
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