Voluntary Disclosure Program (VDP)
The Voluntary Disclosure Program (VDP) was created to encourage taxpayers to voluntarily come forward with any false statements or errors during their dealings with Canada Revenue Agency (CRA).
CRA requires that any disclosure meet four conditions:
1. The disclosure must be voluntary
2. It must involve the potential of a penalty
3. Generally it should include information that is more than one year overdue
4. The disclosure must be complete
The benefit of making a valid disclosure is that, although you will be required to pay any taxes owing plus the applicable interest, you will not be subject to any penalties or prosecution that could have applied had CRA discovered the issue.
A disclosure can be submitted if any one of the following requirements was not met:
1. Failed to fulfill their obligations under the Income Tax Act
2. Claimed ineligible expenses on a tax return
3. Failed to report an amount of GST/HST
4. Failed to report taxable income they received
5. Failed to remit source deductions withheld from their employees
6. Failed to report foreign sourced-income that is taxable in Canada
7. Failed to file an information return
Contact Dustin for a further review or for further explanation.
It is impossible to include all situations, circumstances and exceptions, however every effort has been made to ensure the accuracy of the information. However, because of the nature of the subject, no person or firm involved in the preparation or distribution of this commentary accepts any liability for its contents or use.