How You Can Work with the Tax Amnesty Process

If you think you deserve a secondchance when it comes to your tax, why not apply under the Voluntary DisclosuresProgram? Whether you have neglected to report income, deduct expenses that werenot permitted to you, or have made a mistake on your return, you can avoidadditional fines or imprisonment if your claim is accepted.

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What does tax amnesty mean?

Tax amnesty means that the government allows you to correct errors made on previous tax returns. In exchange for accepting your tax returns, the government agrees not to impose additional penalty fees and waives jail time for tax evasion. The Voluntary Disclosures Program of the Canada Revenue Agency administers the tax amnesty. If you filed a previous return in which you failed to report income, deduct expenses that were not allowed to you, made an error that reduced your tax, or did not file your tax return. On time, you may qualify for the Voluntary Disclosures Program.

How to make a voluntary disclosure?

By making a voluntary disclosure under the VSP, you agree to pay tax from previous years, plus interest. When you make a disclosure, you must file all the information that was omitted from your tax return. Submit Form RC199 (Voluntary Disclosure Program – Taxpayer Acceptance). You can also send a letter providing all the same information to the CRA tax center closest to you.

What is a valid disclosure?

For your disclosure to be valid, it must meet all of the following conditions:

  • You take the initiative to make the disclosure before the CRA takes any enforcement action against you.
  • You may have to pay a penalty.
  • The information you disclose is at least one year late.
  • The information you disclose is complete.
  • What is accepted under the Voluntary Disclosures Program?
  • Your situation must fall into one of the following categories to qualify for the taxpayer relief provisions:
  • You have defaulted on your tax obligations under the applicable tax law.
  • You did not report a taxable income that you received.
  • You have declared ineligible expenses on a return.
  • You did not pay the source deductions of your employees.
  • You did not report an amount of GST / HST.
  • You did not file information returns.

You have not reported income from foreign sources that are taxable

However, the CRA program does not accept disclosures about a bankruptcy return, a tax return stating that there is no tax payable, or a refund for an arrangement related to a bankruptcy return. transfer pricing or rollover provisions. The CRA does not accept requests for relief from penalties and interest after you have received your notice of assessment or reassessment.

Anonymous disclosure

You can make an anonymous disclosure, that is, without giving your name. Although you do not disclose your identity on your initial application, you must provide proof that you meet the valid conditions for disclosure.

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