An Introduction To Voluntary Disclosure & Compliance Program

The time of taxes is the most stressful time period for taxpayers.

To lower down their stress and let them pay their taxes on time, few years back a voluntary disclosure and compliance program was launched.

The major purpose behind launching this program was to encourage the taxpayers who haven’t filed and paid their taxes yet. They should now come forward willingly and pay what they owe.

In fact, Canadian tax services have mentioned in their recent interviews that this program covers all taxes managed by the Tax Department, comprising income, corporate, and sales.

voluntary dsiclosure taxesAny taxpayer who successfully meets the aptness and standards can contribute, even if their nonpayment was the result of fake or criminal conduct.

To partake, a taxpayer just has to tell about the taxes that they owe, sign an agreement to pay what they owe, and endure to pay their taxes in the future.

Pay Attention: There’s a significant exception to this privacy rule: if a taxpayer deliberately interrupts the terms of the voluntary disclosure agreement, government authorities can use the disclosed information against them, as mentioned by voluntary disclosure Canada authorities.

A) Eligibility: To be eligible, a candidate should meet all of the following criteria:

• They must have a clear taxpaying background, they shouldn’t be under audit by the Tax Department for the tax type and tax year(s) that they are revealing.

• As mentioned above, they shouldn’t have ever received a bill for the past due taxes that they are disclosing.

• There shouldn’t be any kind of criminal investigation against them.

• They shouldn’t be seeking to reveal contribution in a tax evasion transaction (commonly known as a tax shelter) which is a federal or Canadian or any other country reportable or listed transaction.

B) Compliance: Your certain actions can be considered as an act of violation of the agreement:

voluntary disclosure

• Deliberately providing wrong material information in any of your disclosure documents.

• Deliberately neglect material information from any of your disclosure documents.

• Deliberately fail to wage the back taxes and interest that you approved to pay as part of the agreement. It would be beneficial for you to get through and through all the details of tax compliance program rules in advance.

• Here, just log on to this link to find all the details.

• If you disrupt the terms of the agreement, government authorities will no longer be bound by their promises.

• Authorities might trail any civil or criminal penalty that might apply to the transgression disclosed by you at the time of program course.