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♦ Cancel or Waive Penalties and Interest
♦ Protect You Avoiding Criminal Action
♦ Stop Tax Debt Collection Activity
♦ Stop Notional Assessment by CRA
♦ Stop Wage Garnishment
♦ Stop Tax Lien
How can CRA find out your undisclosed income?
Don’t try to hide your undisclosed income. CRA has many ways to find out about your undisclosed income, such as from your bank account or employer; when your customers or suppliers are tax audited by CRA, etc….
In order to avoid heavy penalty charges and interest, the only way to avoid is to make a voluntary disclosure. However, you have to be qualified to get into this program.
Qualification for Voluntary Disclosure Program (VDP)
The Voluntary Disclosures Program (VDP) gives the taxpayers opportunity to disclose their unreported income to avoid penalties, interest and prosecution.
You must meet the all of the following conditions:
- Must be voluntary (Without being fist contacted by CRA);
- Must has potential penalty involved to your unreported income;
- Must be at least more than one year overdue for your unreported income;
- Must be completely disclosure of your unreported income for all reporting periods.
Once CRA accepts the disclosure, you will not be subject to penalties. And you won’t face potential prosecution. However, you still need to pay the amount of tax owing plus interest.
Granted or not accepted under VDP, why?
According to current CRA policy, VDP relief may be granted when the following circumstances occur:
- Not fulfill your obligations under the applicable act;
- Not to report taxable income you received;
- The ineligible expenses claimed on your tax return;
- Failed to remit your employees’ source deductions;
- Not report an amount of GST/HST;
- Not file information returns;
- Not report foreign-sourced income that is taxable in Canada.
Not accepted under the VDP if disclosure relating to bankruptcy returns and other circumstances. Please consult with our experienced tax consultant for evaluation about your qualification to apply for a VDP relief.
How to make disclosure?
There are two ways to make disclosure:
- A named disclosure;
- An un-named or anonymous disclosure.
The difference in the two types of disclosure is the timing of the identification of taxpayer. If the unnamed disclosure is made, the taxpayer has 90 days as anonymous taxpayer in the ongoing discussion with CRA. The purpose of making an anonymous disclosure is to get certainty of the VDP relief is available. Before the name of the taxpayer is disclosed, all discussion is considered to be non-binding and informal.
What happens if my disclosure denied by CRA?
You will receive a notice of denial from CRA. And on the letter, it could be the following stated.
- Your disclosure is rejected;
- An audit or investigation may be started;
- The penalties and interest charges are issued;
- An reassessment may be issued based on the disclosed information
- Other consequence may exist…depend on case by case
VDP Process – three stages
First Stage: Initial Submission
Second Stage: Administrative Review
Third Stage: Judicial Review
At TaxFix Solutions, we will help you to go through each stage for a desired result.
Why you need HELP from TaxFix Solutions?
To have us on your side, we will assist you understand the potential risk and benefit by the VDP application. TaxFix Solutions will carefully draft your disclosure application and manage the process to ensure you are better protected from potential dangers and criminal prosecution when dealing with a government agency. We can make initial anonymous inquiries on your behalf to preserve confidentiality. And your discussion with us is completely confidential.
Don’t wait until you are caught by CRA for your unreported income!
Stop hiding your problems! It may ruin your life.
