It happens to many individuals and businesses. They file a tax return and under-declare income, or their bookkeeper claims too many expenses or they forget to report something that they should have. In other situations some simply fall behind filing.
Once you have fallen behind filing returns or you know that an issue exists within a return you have already filed, speaking to a company like Tax Solutions Canada is a good idea.
There are programs available that can be leveraged to help you deal with your tax problem and avoid interest and penalties. If the CRA has not already contacted you asking you to file late returns or substantiate information in a past return then you may qualify to file your returns under the Voluntary Disclosure Program.
There are 4 caveats to making an application under the Voluntary Disclosure Program which include:
- The tax in question must be at least 1 year old.
- The tax in question must involve a penalty.
- Disclosure must be complete.
- Disclosure must be voluntary.
The great thing about the Voluntary Disclosure Program is that, if you qualify, the CRA will accept your disclosure with the agreement not to prosecute you or charge you penalties or interest. The Voluntary Disclosure Program is an official process that companies like Tax Solutions Canada navigate with ease.
The first question though will bewhether or not you qualify under this program. This is key because if you don’t it is important to identify that the resolution to your problem may involve a completely different course of action if VDP is not the answer.
If you do qualify, the steps for VDP are as follows:
- An application is made to the CRA.
- If the application will be considered for VDP the CRA will assign a VDP officer to the file and send a letter back with the VDP officer’s name, contact information and a VDP number.
- At this point you will have 90 days to have your returns prepared and filed or amended and re-filed.
Once all of the above has occurred the CRA will notify you if your relief application has been approved. This is precisely why it is wise to have a company like Tax Solutions Canada who specializes in VDP qualify you for this program and then navigate it for you.
Taxsolutionscanada.com is the authority on information for individuals and businesses who have tax problems. Contact Tax Solutions Canada today for more information about how to reduce the interest and penalties on your tax debt.