CRA VOLUNTARY DISCLOSURE PROGRAM – VDP
Consequences Of Late Filings And Unreported or Under-Reported Income
The CRA or Canada Revenue Agency expects that all Canadian personal and corporation taxpayers to file their tax returns on time. In addition, the CRA wants individual or business taxpayers to prepare their tax return properly to avoid omissions or false statements. If individual or corporation taxpayers file their taxes late or have undeclared income, or previously submitted tax returns that had errors, the CRA may charge hefty penalties for those mistakes.
It may get worse, if CRA deems the existence of gross negligence, the tax law allows the CRA to assess a penalty of up to 50% of the unpaid tax. In addition, once convicted, taxpayers can be fined up to 200% of the tax evaded, and sentenced to jail.
Fortunately, there is a way to correct the mistakes and to waive the penalties. CRA Voluntary Disclosure Program or short for VDP is the solution you can deploy to to clean up your tax mess. The CRA Voluntary Disclosure Program or VDP lets you come forward and straighten out your tax affairs without major damage to your financials.
Why Use The CRA Voluntary Disclosure Program or VDP
This program was designed for people who have undeclared income for the past few years. It was also created for people who are devoted to paying their taxes but who, unfortunately, submitted erroneous returns. So they may file a CRA Voluntary Disclosure Program or VDP to correct erroneous information or include information they might have skipped in their previous dealings with the Canada Revenue Agency.
The Conditions For CRA Voluntary Disclosure Program or VDP
You need to file a valid CRA Voluntary Disclosure Program or VDP application for the CRA to consider your case. The acceptance of CRA Voluntary Disclosure Program or VDP is not guaranteed. It is important to file a CRA Voluntary Disclosure Program or VDP if you fulfill all the requirements to avoid rejection.
The conditions to qualify a CRA Voluntary Disclosure Program or VDP is that:
- The disclosure must be voluntary meaning that you can not file VDP after you become aware of the CRA’s attempt to contact you for compliance issues.
- There should be a penalty involved. After all it is the penalties removal most taxpayers seeking through this program,
- The submitted information should be at least twelve months late and
- The information submitted for the CRA Voluntary Disclosure Program or VDP must be complete.
Exception For CRA Voluntary Disclosure Program or VDP
Even if the conditions above are satisfied, the CRA may still reject the voluntary disclosure application under some circumstances. For instance, if your CRA Voluntary Disclosure Program or VDP application are related to bankruptcy returns they will not be accepted.
No Name CRA Voluntary Disclosure Program or No Name VDP
A CRA Voluntary Disclosure Program or VDP can be used anonymously. It is called No Name VDP. However, the taxpayer making a No Name VDP must reveal the full identity of the taxpayer within three months time. The 90-day or three-month time line will not begin until the person making the no-name disclosure receives a letter from the CRA to acknowledge the receipt of the CRA Voluntary Disclosure Program or VDP application.
CRA Voluntary Disclosure Program or VDP can be complicated for most taxpayers because it involves lots of details that the CRA requires. There are uncertainty involved in many aspects of CRA’s interpretation of your cases. With a process that can last half year or longer, it can be both time consuming and stressful.
Do Not Lose This Once In A Life Time Opportunity
If you have unreported income, under-reported income, late filing with tax owing, then you cannot afford to wait any longer! Take action to resolve your tax problems Immediately! Each tax payer has only once in a life time opportunity to do a CRA Voluntary Disclosure Program or VDP. You are in a timing race with the CRA. The minute when CRA contacts you, it is too late.
To ensure maximum success, it is important to work with an experienced tax professional to help you solve tax problems. Many people attempted to address their tax problems themselves, resulting in bigger damage due to the complex Voluntary Disclosure process. They need to be reminded that the Voluntary Disclosure Program (VDP) is more than just a simple form.
We have helped many taxpayers in filing CRA Voluntary Disclosure Program -VDP and negotiated great settlement for them.
To make the process simple and easy for you, we offer an initial consultation that is completely FREE and CONFIDENTIAL. You will get a detailed review of your tax problems and get a customized recommendation in the meeting. Then you can decide what to do from there. Free of Obligation!
Give us a call at 866.611.6482 or complete the Contact Form to your right to get yourself under protection right away!