The Voluntary Disclosure Program (VDP) has been one of the CRA’s most effective programs allowing taxpayers to disclose their unreported income to avoid prosecution or penalties. Failing to file tax returns or declare income can become a very serious problem, very quickly. Hundreds of Canadians just like you are prosecuted each year for failing to file returns and declare income, often resulting in punitive penalties in addition to standard late filing penalties and even jail time.
Under the CRA Voluntary Disclosure Program, also known as VDP, you can submit previously unfiled returns or declare unreported income while avoiding penalties, interest and prosecution. While it is a complicated and tedious process, it can be extremely effective.
There is of course one caveat – you have to get to the CRA before they get to you. The moment they begin asking you for information or request that you file late returns, you cannot apply under the CRA Voluntary Disclosure Program and will be forced to pursue other less effective and/or more costly remedies.
The main catalysts of the CRA Voluntary Disclosure Program was that it allowed taxpayers to anonymously submit a VDP proposal to see if they are eligible without giving out their identity or paying the taxes owing up front. For individuals with high sum offshore accounts or multiple years of unpaid taxes, the VDP program provided them with a efficient and favourable remedy.
The changes coming January 1st 2018 to the VDP will ultimately remove the main benefits of the program. The main changes include:
The changes to the CRA Voluntary Disclosure Program will greatly reduce your ability to avoid potential penalties and even jail time. It is vital to submit your VDP application as soon as possible before time runs out.
With over 70 years of collective experience working within the CRA, Tax Solutions Canada has Ex-CRA agents and licensed Tax Lawyers on staff. We are uniquely equipped to help you avoid CRA tax penalties and prosecutions.
Canada Tax Solutions can effectively:
A Ex-CRA Tax Expert can review your unique situation for free. Call us now at (855) 662-7229, or fill in the form on the top of this page.