VOLUNTARY DISCLOSURE PROGRAM
A voluntary disclosure agreement can restore your peace of mind about past due taxes or returns. These agreements between a taxing authority and a taxpayer resolve outstanding liabilities in a mutually beneficial way. As a result, taxpayers return to compliance and lessen their anxiety over unpaid taxes and unfiled returns.
What Is Canada's Voluntary Disclosure Program?
Canada’s Voluntary Disclosure Program (VDP) is a compliance-promotion policy to encourage taxpayers to reveal income or tax liability previously unknown to the Canada Revenue Agency (CRA). The CRA restructured the program in 2018, allowing taxpayers to amend incomplete information on previously filed returns, provide unknown income data or file past-due returns.
Under the VDP, there are two paths to resolution — a general program and a limited relief one. CRA determines the relief on a case-by-case basis, considering factors like intent, the money amount involved and the length of noncompliance. The participant’s qualification path may also restrict appeals.
Who Qualifies for Voluntary Disclosure?
Most taxpaying entities can apply for the VDP, including businesses, trusts and individuals. Qualifying situations include income taxes, sales taxes, excise and duty taxes, and payroll-deducted retirement or employment taxes. Those wishing to participate must complete a VDP application and meet the following standards:
- The taxpayer isn’t the subject of any existing CRA audits, investigations or enforcement involving the information they want to reveal.
- The taxpayer offers information that is a minimum of a year old.
- The taxpayer agrees to provide complete and accurate documentation and information about the previously unknown noncompliance.
- The prior unsubmitted information will trigger a penalty or tax liability — the VDP is not for filing or amending returns that result in refunds.
Benefits of Filing Your Voluntary Disclosure Program Application Through CPA4IT
A successful CRA voluntary disclosure application helps you regain tax compliance and reduce your worry. Once accepted into the program, you can expect to pay the back taxes you owe with a lower interest rate. As part of the general program, you’ll incur no penalties — qualifying for limited relief may still involve penalties other than those discharged for gross negligence. Both programs generally provide immunity from criminal prosecution involving the situations you disclose.
At CPA4IT, we know how to get you qualified, accurately complete the forms and maximize your benefits under the program. When you partner with us, you’ll benefit even further from:
- An experienced professional on your side: Our VDP veterans act as your advocate throughout the process and provide audit representation protection.
- In-depth expertise: The CPA4IT team has extensive experience in communicating and negotiating with the CRA while minimizing irrelevant information disclosure.
- Specialized industry knowledge: We concentrate our services on helping small businesses and self-employed taxpayers, particularly those in the IT, real estate and medical industries.
- Access to the latest technology: Our professionals use advanced tools to prevent application errors and oversights.
- Exceptional customer service: We dedicate ourselves to a customer-first approach and provide unparalleled service at every step.
Schedule a Consultation With CPA4IT Today
We’ll help you decide if you qualify for the VDP with a no-cost consultation. Our experienced professionals will discuss your situation details, provide guidance on your options and help you navigate the process.
Connect with a team member online to request your complimentary appointment today.
Pay Less Tax
A great small business tax accountant does more than just measure value, they create it. At CPA4IT our goal is to save you substantially more than it costs you for our services. Over the last 30 years we have developed tax strategies designed to help you keep more of your hard earned money. If you would like to learn how we can help you pay less tax, simply download our FREE Guide to Pay Less Tax.
