Monday, 1 June 2015

6 Ways to Get Your Voluntary Disclosure Application Rejected

If you know that you have undisclosed or incorrectly disclosed information on a tax return, or have
not filed a return, you may be eligible for the Voluntary Disclosure in order to avoid penalties, interest, and even prosecution - but this is a complex process requiring expert guidance - you only have one shot!
Only one shot? Yes, and there are a number of ways to get your VDP application rejected. Here are just a few of the most common:

·        Contact CRA, triggering them to contact you before you make your application (once CRA I aware, it is no longer voluntary, and is therefore invalid)

·        Disclose only one tax year when you owe another – disclosure must be complete

·       Disclose one type of tax when you owe another (e.g. HST and Income tax often go together) – disclosure must be complete

·       Be dishonest or omit information from the application

·       Not managing the VDP process properly

·         Filing the application incorrectly
 
 What you need to qualify:

·        Disclosure must be complete

·        Disclosure must be voluntary

·        Must involve a tax debt at least 1 year old

·        Must involve a penalty

It is even possible to test the CRA’s acceptance of your application on a no-name basis. This process is somewhat more complicated but with the right experience is well recommended to start the clock of protecting you from the consequences of non-disclosure.

If you have undeclared income, unfiled returns or have claimed expenses or deductions that are not entirely valid you would likely benefit from a professionally handled application under the Voluntary Disclosure Program.  It will save you on penalties and interest, avoid criminal prosecution and most importantly no more sleepless nights or looking over your shoulder. 

Lastly, do not be afraid of the tax debt that will come to light.  Professional tax solution companies like ours have the experience needed to extract fair and reasonable payment plans from CRA. Please call us today at 1-888-868-1400.

 

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