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Anthony Layton MBA, CIM

Chairman & CEO, Portfolio Manager

Peter Guay MBA, CFA

Portfolio Manager
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Changes to the Voluntary Disclosure Program

April 3, 2018 - 0 comments

So here’s the thing about tax planning: things change on a pretty regular basis. It’s usually right around that time when you think you’ve got a handle on your situation that new guidelines are put in place. That is what happened this past December with the Voluntary Disclosure Program but don’t worry, I’ll take you through those changes.

In my previous video I talked about the Voluntary Disclosure Program offered by the Canada Revenue Agency, what it is, and who can use it - I’ll link to it below. In this video, I want to discuss what the recent changes to the program mean for Canadians who might be considering the VDP. 

Changes were announced in December 2017 to the Voluntary Disclosure Program that came into effect in March 2018. The reason for these changes was to tighten the eligibility criteria to access the program. In other words, it’s going to be harder for those who intentionally avoided paying their taxes to take advantage of and benefit from the VDP.  

The changes have created two tracks for disclosures. The first track is the Limited Program, which will offer, as the title says, limited relief to taxpayers who have intentionally avoided paying taxes. Under the Limited Program, taxpayers will not be referred for criminal prosecution with respect to their disclosure and they won’t be charged gross negligence penalties.

The second track is the General Program, where the same rules apply regarding criminal prosecution and gross negligence penalties, but unlike the Limited Program, the CRA will provide partial relief of interest for years preceding the three most recent years.

Look, the CRA doesn’t want to scare you but it does want you to pay your taxes. It’s getting better at finding tax evaders and those who are found tend to pay heavy penalties. Better to come clean before they come after you!

 

By: Peter Guay with 0 comments.
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