My name is Mark Goodfield. Welcome to The Blunt Bean Counter ™, a blog that shares my thoughts on income taxes, finance and the psychology of money. I am a Chartered Professional Accountant and a partner with a National Accounting Firm in Toronto. This blog is meant for everyone, but in particular for high net worth individuals and owners of private corporations. The views and opinions expressed in this blog are written solely in my personal capacity and cannot be attributed to the accounting firm with which I am affiliated. My posts are blunt, opinionated and even have a twist of humor/sarcasm. You've been warned.

Tuesday, May 24, 2011

Dealing with the Canada Revenue Agency- Part two

In part one of my blog, "Dealing with the Canada Revenue Agency", I discussed some of the more "confrontational" situations in which you may deal with the Canada Revenue Agency ("CRA"), including notices of reassessment, audits and notices of objection. In this second blog, I discuss the two main "relief" provisions available to taxpayers.

Taxpayer Relief Provisions

The taxpayer relief provisions, previously known as the fairness provisions, may provide relief from interest and penalties owing by taxpayers who because of circumstances beyond their control, were unable to meet their income tax obligations. The provisions are applicable for ten years back from the application date ( ie: a request filed on or after January 1, 2011, must deal with an issue related to a taxpayer's 2001 return or later).

The above link for the taxpayer relief provisions is very detailed and well laid out by the CRA, so I will not go into any further detail here, other than to say the following are situations where the provisions may be applied:

1. The CRA may waive or cancel penalties and/or interest when they result from circumstances beyond a taxpayer's control (ie: natural or human made disasters, illnesses, deaths, postal strikes etc);

2. The CRA may also waive or cancel penalties and/or interest when they result primarily from the actions of the CRA (ie: processing delays, errors in CRA publications, etc.); and
3. The CRA may also waive or cancel interest when taxpayers cannot pay amounts owing because of circumstances beyond their control (ie: loss of employment etc.)
Voluntary Disclosure Program.
The Voluntary Disclosures Program (VDP) allows taxpayers to come forward without fear of penalty or prosecution, as long as they have initiated the process. If you come forward after the CRA initiates contact, the VDP will be denied. The VDP may be utilized by taxpayers for issues as varied as not reporting foreign income, to coming forward to report cash transactions, to reporting omitted capital gains transactions. While this provision may require a substantial payment of past income taxes, it provides relief from penalties, criminal prosecution and as I have been witness to, stress relief.
While I am being slightly whimsical saying a VDP provides stress relief, I cannot understate how important that has been to a couple clients I have had in the past. Some people almost worry themselves "to death", unable to sleep and losing weight and making a VDP lifts an extreme weight from their shoulders.
A valid disclosure must meet four conditions:
  1. The disclosure must be volunatary.
  2. The disclosure must be complete
  3. The disclosure must involve the application or potential application of a penalty and
  4. The disclosure must generally include information that is more than one year overdue.
The CRA realizes many taxpayers are reticent about the VDP process and thereby offer a no-name filing option. Under this option, you can provide the CRA full disclosure of your situation without providing your name, the name of your company or other names that could be traced back to you; however, the details of the disclosure must be exact and complete. The CRA will then provide their opinion on the consequences of the VDP and whether it would be accepted. This opinion is not binding until you provide your true name, however, assuming the facts provided are complete, I have never seen the CRA renege.
The CRA has some discretion in VDP disclosures and depending upon the situation may reduce the related interest charges or not require some years to be filed where there are multiple year omissions. Any additional relief is a bonus- the fact the VDP removes any penalties and criminal prosecution is why taxpayers come forward in the first place.

The blogs posted on The Blunt Bean Counter provide information of a general nature. These posts should not be considered specific advice; as each reader's personal financial situation is unique and fact specific. Please contact a professional advisor prior to implementing or acting upon any of the information contained in one of the blogs.

128 comments:

  1. Hi Mark:

    First, thanks a lot for posting all these interesting information. Really enjoyed your blog. I recently received a letter from compliance division under CRA international tax services office for $1,000 interest income I forgot to report three years ago. Trigged by the letter, I went back for a thorough checking and found another $2,000 interest income from a different US bank four years ago, which I did not report. (I moved to Canada from US and was in the process of winding down my assets there.) However, the second 2K interest income was not mentioned in CRA’s letter.

    My questions:

    a.Do I need do anything about CRA letter or just let 30 days pass and pay the tax and interest?

    b.Can I still use volunteer disclosure program to claim my second 2K interest income to avoid the penalty or it is too later? If it is too late now, how long must I wait to be qualified for VDP?

    c.Will I be more likely selected for the future audit because this incident of unreported earning?

    Many thanks in advance for your attention.

    Jason L

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    1. Hi Jason

      a) Not sure what letter says, so I cannot comment. My only concern would be the CRA wants to tack on a 50% penalty on tax "evaded"

      b) No, you cannot have a VDP if the CRA is aware of the income source already as you are not disclosing something they don't already know

      c) probably, but not always-- I have seen the CRA follow up with people audited before with issues and also seen them left alone. So I would say likely, but not for sure.

      Delete
    2. Hi Mark:

      Thanks so much for the quick reply. For a, what do you mean by 50% penalty, 50% of under reported income or 50% of tax owed? I am only aware of 20% for repeated failure to report or penalty for interest owed over $1,000. In both situations, they do not apply to me. Also, how to define "tax evaded"? BTW, the letter says "... if we do not receive a reply or a request for extension within 30 days, your income tax return will be adjusted to include the above mentioned foreign source income". As it was my mistake, I am willing to pay. Just wondering if I should call them or just wait to receive the adjustment after 30 days.

      For b., since it was from different source and different year, CRA may not be aware of it. At least, they did not say in the letter. Of course, if they decide to conduct a full audit for all years, they may find it.

      Regards,

      Jason

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    3. There could be a 50% penalty of tax owing for evasion, but unlikely in this case.

      Most people let the 30 days lapse. If you are keen you can call them.

      I doubt it will apply for VDP, but you can try

      Delete
  2. Hi Mark,
    Awesome blog! Wondering if you can point me in the right direction - I'm trying to research what to do: my parents have owned a condo for over 20 years - 100% rented out. They've claimed the income on their taxes, deducted various expenses, and are now looking to sell the condo. Problem: they think they may have claimed CCA back at the beginning, then stopped claiming it, but have no records (keep only 7 years of taxes, pitched the rest) and now want me to figure out what they should do (banging my head on the wall now). Any thoughts on further research or advice? Their big question of course is "does CRA keep records that far back?" Thanks very much!

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  3. Hi Anon:

    Do your parents remember what they purchased the property for? Do they remember how much they allocated to land? If by fluke they do, then just use the builidng allocation less the current UCC and you have the recapture. If they dont, then just do your best. IT is my experience the CRA does not have the records 20 years back either, but I cannot guarantee that. Sometimes you just have to use your best estiamte.

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    1. Thanks - given it was a condo I'm not certain they allocated anything to land? Were they supposed to? (ugh) And they have no record of what the UCC is! I think he just dropped that schedule off the taxes long long ago ... I'm sure he knows purchase price.
      One more question please - Father in law has gold - a few ounce bars purchased from Canadian bank, 30 years ++ ago. Doesn't have paperwork on purchase price, doesn't know if he crystallized gains or anything. Any idea how we should proceed? I'm thinking of calling the bank to see if they have purchase records .... We are concerned about taxes when he passes or even earlier as he is trying to gift it to us to "avoid tax" (Banging head again .... ) Do we just call CRA and ask for help?? I think we can not sell any of it ever without some sort of paper supporting the cost (and ownership!) right?

      I'm still reading thru your posts slowly. Awesome info! Thanks!

      Delete
    2. Anon, if they did not allocate anything to land, then your task is easier. The total original cost less the UCC is the recapture.

      In respect of the gold, I would suggest you not call the CRA; make a decision and go with it. Let the CRA find the issue and decide if they want to question you. As for the cost, if you cannot get the purchase records, you may want to consider asking your father in law the year he thinks he purchased the gold and go with that. As you note, there are no supporting records, but not sure you have much other choice.

      Delete
    3. Thanks very much for your help!

      Delete
  4. Hello Blunt Bean Counter (BBC). I am about to make a Voluntary Disclosure. It will be a No Name Disclosure and is being done because I have not filed any personal tax returns since I returned to Canada a few years ago.

    I am wondering, apart from the Form RC199, and the accompanying disclosure letter, do I need to attach completed T1's as well? Or do the T1's come later?

    Also, do I need to state the reason for the failure to lodge? Basically it is simple neglect, so mentioning it makes me sound like a bit of an idiot.

    Last question, sorry to try your patience, I will need time to gather the money to pay the taxes I will now owe. I may be able to take a loan out from the bank. Is the VD valid if I cannot repay what I owe straight off the bat? Can the inability to pay at the time of making the disclosure invalidate the disclosure?

    Sorry to bother you with this. I am actually a lawyer and if this doesn't get done properly I wouldn't be surprised if the LSUC disciplines me! I can't believe I was so foolish to allow this situation to arise.

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    1. Hi Anon

      If you are making a no name disclosure, you are only seeing if they will accept the disclosure as voluntary based on the facts presented, thus you do not need to attach the returns. However, it is helpful to provide them some sort of summary of the missing income.

      If u say neglect, you will join a whole bunch of other people. If that bothers you say life got in the way or something. They don't really care, what they are checking is do you qualify and (And once you provide a name whether they have already attempted to contact you to file, since if yes, you cannot file a VD).

      I cannot answer the money part, but they usually are ok if you provide a payment scheme and hold to it, but that is a case by case basis. You should probably have an accountant at least provide you some guidance if u r doing this yourself.

      Delete
    2. Thank you. Yes, I will be using an accountant. Had I known you existed I would have gone to you even though I don't live in Toronto. I think I will still use you as you seem to have insight on the Globe and Mail article about dividends where if I incorporate I can get the first $50,000 I make tax free. But first things first, I want the VD to be fixed up and out of the way first. Thanks again for your thoughts.

      Delete
  5. Hi quick question, I have a CRA auditor who is doing an HST audit (they are taking the stuff back to their office) and they have asked us to sort all our receipts for ITC"s in the same order as the simply accounting general ledger listing. I found this annoying as I am sure they would not ask this of a large corporation. Do we have to ? I understand the more bees with honey than vinegar angle though.

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    1. Hi Steve

      It is my understanding that you have no requirement to do so. However, if you were my client, i would tell you to bite the bullet and do the best you can to organize, just to get rid of them.

      Delete
  6. Hi Blunt Bean Counter,
    I need to file a VDP for the years 2009, 2010, and 2011 for a small amount of money earned on the side (a couple thousand dollars each year). I didn't even think of it until filing for taxes this year. I'm not sure how to calculate the amount I will have to pay based on my omissions but I read on the CRA website regarding the VDP program that you need to pay the amount that will be owing when you submit the form. Can I just send in the filled out form and wait to hear from them how much will need to be paid before sending a cheque?
    Thanks

    ReplyDelete
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    1. Hi Anon:

      Anytime I have done a VDP disclosure I have re-submitted the amended tax return, so I know the exact tax amount due. I am not sure if you can just provide the missing income and expect that the CRA will calculate the tax. I think you have to refile those returns. However, in any event, you can wait, they will just charge you interest from the date of the disclosure till the payment date.

      Delete
  7. I have just completed a voluntary disclosure now I have the anxious wait before I hear back from them. I'm a little worried, but I feel better having actually disclosed this information rather than do nothing and be living in fear of an audit for the rest of my life.

    My situation is that I haven't declared around $3000 per year of income for 4 tax years.

    I just supplied them a brief explanation and the actual amounts I omitted to report per year as I wanted to get it into them quickly in case they got in touch while I was messing around trying to gather official bank statements etc.

    My question is what are they likely to want from me next?

    I have the statements from one account already on the way, but for my other account the bank have told me they can't send me anything other than what I would be able to print out of my internet banking. Should I still get them to send this or will the CRA accept a printout by me.

    Should I get my T1-ADJs done and ready to send in as well?

    Thanks for your help!.





    ReplyDelete
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    1. Hi Anon

      The amount u omitted is a pittance for most VDPs and I would not expect the CRA to waste much time on it. I think they would be ok with a printout. Yes u should have the t1 Adjustments ready but confirm they r okay with the adjustments and don't want a fully refilled return

      Delete
  8. Hi,

    I have sent my VD to CRA about 4 weeks but have not received anything back yet. Can you please tell me form your experience how long does it take any response from them.

    I have sent it by registered mail and have evidence from Canada mail that they got it.

    Thanks.

    ReplyDelete
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    1. Hi Anon;

      I am not sure, as I understand they have a large backlog, partially caused by the new T1135 reporting requirements which have caused many people to come forward. I would not expect a response for at least another month or two, but honestly, I have no idea of the current backlog.

      Delete
  9. Thank you.

    Last night I was reading VD form again and realised that from the time I filled it in (end of April) and sent (May 2) they have removed one of the addresses from the form (Saskatchewan tax office).. as luck would have this is where I sent mine..

    What would you do in situation like that? I know they received it in Saskatchewan office, but this address is no longer on the form.. people form Alberta like me have to send it to Quebec..

    Appreciate you help.

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    Replies
    1. If u did a name VDP and not a "no names" just call VDP in Quebec and ask about status and ensure in system. I dont have a number offhand.

      Delete
  10. Unfortunately they have no number to call listed anywhere, which is pretty bad, not sure what to do.

    ReplyDelete
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    1. You can try sending a Fax:1-888-452-8994 and tell them your issue and ask them to call and confirm they have your VDP in system. I dont have a number for them

      Delete
  11. I have worked out of country for the last 15 years and haven't filed a tax return in that time. I want to clean this up. Would the VDP be the way to go for me?

    Thank you!

    ReplyDelete
    Replies
    1. Hi Anon:

      You should first confirm with an accountant that you had to file returns. If you have worked out of country for 15 years, you may be a non resident for tax, but that depends on the circumstances. Speak to an accountant. If they determine you should have been filing, then a VDP is probably the way to go

      Delete
  12. Thank you! I have an appointment with an accountant today.

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  13. Hi, came across your writeup and have a question. Great blog by the way. My wife and I forgot to include income related to shareholder loans back in 2001. The amounts of income are about 21000 each maybe 9000 in taxes each due. Because the timeframe is beyond the 10yr limit CRA talks about and 2001 is 'statute barred' i'm not sure what to do. Do i send them an amended 2001 return with the missing income and payment of taxes? What about the interest due on that amount - not sure if I need to calculate what would be due or whether they'll waive the interest because i reported the income under VDP. And lastly how do I deal with ON government - send an ON return to CRA or ON govt?

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    Replies
    1. Hi Anon

      This is a loaded question and thus i will not answer it.

      Delete
  14. I'm a new secretary/treasurer for a not-for profit and was going through records and found they should have filed for an HST number about 5 years ago and haven't. They have yearly revenues of almost $100k so there is a a large amount of HST they should have paid, had they been registered. Can they claim the ITC's for the past years against what they owe, since Canada Revenue says the HST registration date would be back-dated.

    ReplyDelete
    Replies
    1. Sorry Anon, I don't provide specific tax advice on this blog and I am not a HST expert, you need to speak to the non profits accountants

      Delete
  15. HI there .. i currently own a rental and live with my girlfriend who is the only one on title at the property we live in. i owe approx 20k in back taxes to cra. my intention was to pay cra this year as i had money saved from the previous year also every year i had increased business so i thought that it would be easy peasy.. I work as a mortgage broker so my commissions are good one month and bad the next.. my july/aug was horrible months and did not close a single deal. my rental needed repairs (furnace, ac, and new deck) as they were over 20 years old. plus the house we live in now needed some updates also so the funds i had saved went to fixing those problems and also keeping my monthly obligations in july/aug.. On top of that MCAP incorrectly assessed my property way to high which resulted in higher property taxes. our (her) mortgage company paid the property tax shortfall which resulted in a 600/m increase to our property tax payment. so now this house if for sale along with my rental. We already decided before cra called 20k will go to my taxes once our house sold.. CRA called me yesterday saying that the debt needed to be paid asap. I informed them that our (her) house is for sale and the tax debt will be paid once the house sells. the nice lady at cra said that they want either the debt paid in full or a payment arrangement to pay the debt within 6 months.. She also said that cra could order financial statements from my fiancee. can they do that? She said for me to try to get a interim loan or borrow from family. I know they are just trying to get paid which i have no problem with paying them once the house sells.. any suggestions on how i can deal with this problem?

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    1. The only advice I can give is dont ignore them but make it clear u will not borrow from family and that u will pay once u sell ur house not much else I can tell u

      Delete
  16. Hello Blunt Bean Counter,

    Thank you for providing insight for those of us too afraid to deal with such matters head on. I've been operating a small business for the last 8 years and have not reported a small percentage of sales that have come through via email transfers into my personal account vs the corporate account. I would estimate approx. 10k per year, or less. Are there any penalties going the anonymous route to get a feel for the situation? At a complete loss and would rather deal with this now rather than later. I'm assuming the VD program was made specifically for culprits such as I, however, I'm hesitant due to the fear of penalties.

    ReplyDelete
    Replies
    1. Hi Anon

      The VDP program is built around the you coming forward in exchange for potential penalty relief (not interest). Thus, typically, in a proper qualifying VDP, you will not incur penalties. I suggest you consider making the VDP disclosure, but speak with your accountant first to ensure you qualify and to better understand the process

      Delete
  17. Hello Blunt Bean Counter:
    I have a question on how to approach the CRA with this.
    I'm a Canadian national that lives in Canada, but works sometimes in the US under a TN as a Management Consultant. My accountant in 2011 and 2012 incorrectly filed my US income in the US as a resident, and incorrectly claimed all my business income. i.e. I paid substantial US income tax, which I claimed on my Canadian tax return. Now I am about to file amendments with the US, expecting substantial returns for both years. This will require filing adjustments with the CRA for both years, since the tax will then be owed on the Canadian federal and Ont returns.
    This came up before on a much smaller return on an IRS adjustment, and the CRA sent me a bill with penalties and interest before I filed an adjustment. I guess the IRS notifies the CRA if they change a return. I don't want to file Canadian adjustments until the US accepts my amendments and send me the money, so I know how much and can pay the Canadian adjustments. Of course I want to avoid penalties and interest as much as possible. What would you suggest?

    ReplyDelete
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    1. Hi Anon

      I don't provide personal tax advice on this blog. The only thing I will say is that while there is exchange of info between Cda and the US, I would not expect it to be instantaneous.

      Delete
  18. Hi Mark,

    I'm helping some friends get caught up in their taxes. The moved back to Canada in 2008 and haven't filed taxes since then. Husband was self employed for 1st two years - construction. Then employed with deductions at source so no taxes owing since 2010. Wife ran a couple of small businesses and net income ranged from under 10K to 40K for these years. So she has tax, CPP and GST/HST owing. At this point they are under the radar of CRA and want to submit everything at once while it is still voluntary. They know they will have to pay what they owe but are hoping to get relief from interest and penalties. Do they use the VDP first and then apply for Taxpayer Relief Provisions or both at the same time? Their son had car accident with severe brain injury while they lived in the US and they moved back to Canada because the medical costs were so high in the US - they were wiped out financially and have loans from relatives to cover their IRS and medical bills.

    ReplyDelete
    Replies
    1. Hi Anon:

      You would typically file the VDP first, sine the penalties will be waived if the VDP is accepted and the interest may be reduced, so you would need to know what relief you want to request.

      Delete
  19. Hi Mark,

    The VDP introduction is very thorough and helpful.

    Four years ago I bought a home in Canada as a first time home buyer and got the following benefits I suppose:
    (1) Fist time home buyer's plan. --- $25000 tax free RRSP withdraw.
    (2) First time home buyer's credit. --- $750 tax relief
    (3) First time buyer's land transfer tax rebate. --- $2000 rebate
    (4) Anything else do you know?

    But I lied because I actually owned a house overseas at that time. Therefore I was not a first time home buyer.

    Is it eligible for VDP filing? If I file VDP and they accept it, is there any more trouble other than paying the above money back? I will consult an accountant for sure but want to hear your opinion.

    Thanks,

    Sam

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    1. Hi Sam:

      I am not sure off the top of my head if a VDP would apply to you and not all the various funds you accessed are CRA related, some are provincial and I think may have to be dealt with separately? Your situation is a bit complex, definitely engage an accountant. They may need to do a no names VDP to see if the program would apply to you

      Delete
  20. Hi Sam,

    I worked for a company for 3.5 years. During this time the boss changed company names 3 times. He was a Strata caretaking company hired by a strata here in BC. He then hires caretakers to live in or out of the strata. In April 2014, he gave notice to the strata that he would be dropping his contracts, leaving us without work. I was one of the lucky ones, the strata where I worked hired me back immediately. Forward to yesterday, I received a reassessment from the CRA for the year 2014. They are telling me to pay over 5,000 dollars, unsupported income. Apparently, despite sending in my T4 from the old employer, Revenue Canada has no record of the employer sending in T4's or remitting anything held back from our income. Can the CRA just suddenly demand payment like this? There are several employees and several strata's involved. Does the CRA investigate at all, or am I and all other employees on the hook for his unpaid taxes?

    ReplyDelete
    Replies
    1. Who is Sam? I am Mark.

      Sam says that if the CRA is double counting income you reported you can object to the assessment. If they are picking up income you did not report, you are out of luck

      Delete
  21. Excellent information here, thanks Mark.

    Like many folks, I need to file a T1135 for 2013... shares ARE property! The VDP sounds great - but the CRA agent tells me I can't use it - it's less than 1 year since the Jul31/2014 deadline. She says 'use Taxpayer Relief/RC4288'.
    But TP looks much less friendly than VDP - you need a good reason (apart from stupidity/inattention) - so it's more likely to result in the big fine.
    My choice is: TP now (penalty more likely), or VDP August1 (risk the CRA will send me notice before Aug1). Any thoughts?

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    1. Hi Paul

      I do not provide specific advice on this blog especially whether or not to file a VDP. You have the concepts nailed, so make the decision u feel is the most prudent

      Delete
    2. Update - I sent in my 2013 T1135 under VDP on Apr28. Accepted June 2 with no penalty - even tho' the submission didn't meet the >1-year-past-due criteria for using VDP.

      Delete
  22. Great information here - thank you. I haven't filed taxes for 9 years. I've done all the returns, and have the VDP almost ready. I know all my taxes were filed up to then, but I think there might have been an outstanding balance from a previous year. They haven't been in contact about it, and I don't have records for the years involved. I'd like to find out before I send in the VDP, but I'd like to have the VDP in place before I talk to them. I'm wondering if it would make the VDP incomplete if I send it in first?

    ReplyDelete
    Replies
    1. Hi Anon

      Sorry, I dont provide personal advice on this blog related to filing a VDP as they can be tricky, especially in respect to whether an enforcement action has already taken place.

      Since you have done all the hard and expensive work by completing your returns, you may want to engage an accountant to just steer you through the filing process or at minimum, confirm you can file a VDP without concern.

      Delete
  23. What happens if the employer garnishes wages from the employee ordered by the cra and keeps the money

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  24. I have never had that issue so I am not sure what needs to be done. However the CRA would not be pleased with the employer and the employee may need to take steps to confirm the employer is not remitting the tax

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  25. Can the CRA force a tenant to pay their rent to CRA instead of the Land Lord?
    I owe HST from a corp that was dissolves back in 2008. I was unaware of owing any HST until 2015. Now they want 25 grand, which is a number they created using my previous returns.

    ReplyDelete
    Replies
    1. Hi Anon

      See this link for garnishment powers. http://www.cra-arc.gc.ca/collections/ You should see an accountant to see if they can help sort out your issue.

      Delete
  26. I inherited 1/4 of a cottage about 20 years ago which has been rented off and on during that time. I have not reported my share of the rental income. The income ranged from $500 to !500 annually. The property is being sold and I would like to make a VDP. The problem is that I only have records going back seven years and none of the other owners j(who reported the income) have records going back further that. What do I do with respect to the missing years?

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    1. Hi Anon

      I would probably do a no names disclosure and inform the CRA of the issue and provide a couple alternatives, such as an average rent or something along that lines. The CRA may consider your VDP more of a nuisance than a win because of the small amount of income not reported and may (no guarantee) ask for less than 20 years anyways

      Delete
  27. Hello
    Thank you for your time , my spouse has received a finical disclosure from cra , amount owing in back taxes from 2010 is 5000, cra is currently taking a little over 25% for garnishment of wages based on salary., with regards to the financial disclosure it seems very detailed on all the information they want to reduce the amount , is there not another way to discuss options we can pay the amount currently , but to give us a little breathing room we were looking to have a lowered to 15 % in garnishment in wages works out to be a little over 250 , was wondering if i should fill the disclosure out , or can i be directed for any other options .
    Thank you again for your time

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    1. Hi Anon

      Luckily, this is not really an issue with my clients, so I have rarely dealt with this issue. From what I am aware, other than trying to negotiate with the CRA to have the garnishment rate lowered, there are not any other options. You may want to check some of the accounting sites that deal with negotiating with the CRA where you have debts.

      Delete
  28. Hello, my mother (executor & beneficiary of will) added me as co-owner to an account. This account was opened by deceased in '83- with 20^3 invest with cds..in2015.is 45^3now. No funds were added or withdrawn during this time. We have most records-not all-some years. We have made contact to gov. and have to submit an adjustment form for each year interest was undeclared(in several years, taxes were withheld by - out in most years, they weren't.(There were 4diff institutions-due to buying out-in some cases the accounting is clear..others not so). In several recent years there is no interest earned. We are calculating as best we can the interest per year.and want to keep it as simple as possible. For the several years where we don't have the statement....is it correct to 'determine' what it must have been..given the bookend statements? All documents will be supplied to gov. Thank you-hope this makes sense.

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    1. Hi Anon

      Where you dont have the information, the common sense approach is to use the bookend approach you note. The CRA typically accepts such attempts, but sometimes they get can get prickly depending upon the person on your file.

      Delete
    2. Thank you very much. I think it is best for the executor to be responsible for the years up to the time she and I became co-owners, and then I will assume the rest--just trying to keep things simple..particularly as it is such tiny acct compared to what they have been used to. Obviously it is all the same family. Does this make sense? Also, I may have to ask them for another week. I submitted first what | thought they needed-they reply back after two months..with additional requests..with 30 days deadline--we were away for half of that. I wish that I had heard of your site and personal practice earlier.

      Delete
    3. Hi Anon

      Seems to make sense, but I will leave it to your family to agree.

      Delete
    4. It is all agreed, now to look for a one-week extension. Thank you so much.

      Delete
  29. Hello,
    Very informative and helpful blog. A few years ago I omitted to file an information form such as a T1135, (although all related income was reported and the corresponding taxes were paid on time). If I now submit the form a few years late does CRA assess interest, in addition to a penalty for failure to file the form, from the time the form was originally due or does interest start to accrue only if the penalty is not paid once the notice from CRA has been received? Thank you for your time.

    ReplyDelete
    Replies
    1. Hi Anon

      I would look into a voluntary disclosure to avoid the penalties

      Delete
  30. Hi BBC,

    I sent a letter to CRA together with filing of T2062 explaining that we weren't aware that document needs to be filed within 10 days. Since we were very late 90 days, we were assessed a maximum penalty of $2500 each.
    I filed the return together with our Income tax returns on April 30th. As we moved to Unite States from Canada and only sold our principal residence. I didn't know we need to rush and file that return. A move for us was hectic and stressful ( I explained that in my letter ). When I spoke to CRA they said a committee is reviewing the case. This caused us so much undue stress and hardship :(
    Is there any likelihood that they will overturn the penalty, based on my sincere letter, which I sent together when I filed all the tax returns. No one informed us that it needs to be filed ASAP.
    Dina

    ReplyDelete
    Replies
    1. Hi Dina

      Sorry to hear about your penalty. You usually have to write directly to tHe fairness committee so it seems like your letter was passed on. Anyways there is a chance they will overturn but it is definitely no slam dunk as most decisions r not overturned

      Delete
  31. Hi there!

    CRA asked me to send documents for my move (T1-M form). I sent it 4 weeks ago and not sure how long does it take to get a response? Calling them usually take forever to get someone on the phone so I thought you might know the answer ;)

    Thanks!

    ReplyDelete
    Replies
    1. Hi Lisa

      They are very backlogged. If you get no answer after 8 weeks I would follow up

      Delete
    2. Thank you! It's only been 4 but I think I will call them tomorrow just in case. I know they received everything I sent through Registered mail.

      Delete
  32. Hello!
    I've just completed catching up on unfiled tax returns for my wife and I for the last 5 years (2010 to 2014). When all is totalled, I owe only $35 (some years had a refund, some a balance owing) but wife has just over $5400 total that would be owed. I've thoroughly researched the VDP and had some anonymous phone calls with CRA on how to properly submit all info to them. Was advised to send our separate VDP's via separate envelopes and attach the now-completed T1's with the accompanying T4's to the VDP forms.
    I've also done a cover letter for each of us that outlines why I feel we meet the 4 VDP criteria and hope to have some relief re: penalties and interest.
    All is set to mail out to CRA by registered mail but my questions are:

    1. will VDP complete a reassessment of our returns first or accept the completed tax returns as accurate (which, they are to the best of my knowledge).

    2. our reasons for not filing is simply neglect, should I not mention this, or be up front? and will this harm our chances?

    3. is my wife more likely to be audited by going this route as opposed to just sending the 5 years of returns to CRA without VDP and incurring the penalties?

    4. will VDP / CRA seek payment immediately or will there be some time granted once we know exactly what is owed after any reassessments, in order to then send post-dated cheques or set up monthly payments from our bank account?

    Looking forward to some peace of mind soon once all has been sent in. Looking forward to your thoughts.

    Thanks!

    ReplyDelete
    Replies
    1. Hi Steve:

      I do not provide personal tax advice in respect of filing a VDP on this blog.

      What I will say is I would suggest filing a VDP is more prudent than sending in 5 years returns late

      The CRA says the following

      They will send you an acknowledgment letter after it receives your disclosure submission. This letter is normally sent within two weeks and will include information about the next steps in the process.

      You need to pay any tax and interest due as soon as you make your disclosure. Otherwise, interest will continue to accrue on any amount outstanding until the CRA receives full payment.

      Delete
    2. Thanks very much for the timely reply. Much appreciated.

      Delete
  33. Hello!
    I filed my 2013-T1 late, in 2015 and I forgot to include my employment income (T4) since I believed that my T4E includes this amount. I got Reassessment with 20% penalty on non-reported employment income. looks like I had the same mistake back in 2009. I'm going to file Request for taxpayer Relief and not sure if I'm doing right
    Thank you

    ReplyDelete
    Replies
    1. Hi Sonja, not sure what you want me to say, you need to complete the form (I cannot provide you advice on what to say) but it is fairly straight forward. In your circumstance the CRA has not been that forgiving in the past, however, they recently changed the penalty provisions in the 2015 budget so hopefully they may be little more forgiving.

      Delete
  34. Thank youvery much for quick reply, will hope for little forgiving

    ReplyDelete
  35. Hi Mark,

    I have not filed returns since 07 but cra has sent letters requesting filing as far back as 11. been self employed all this time and due to different cercumstances have had paper reciepts I paid destroid but have computer records of income. 2014-15 have had a company running and have all records for that but have wanted to deal with this but am not sure how to.

    ReplyDelete
    Replies
    1. Hi Anon

      You need to see an accountant immediately as you cannot do a voluntary disclosure as the CRA has contacted you. Don't procrastinate, get advice on how to move forward immediately.

      Delete
  36. Hi Mark,

    In 2014 my wife damaged her hearing aids and they had to be replaced. I paid and subsequently made a claim under a homeowners insurance policy and they covered the cost of the replacement hearing aids. I claimed the cost of them as a medical expense on my 2014 return.

    I now have doubts as to whether this was proper.

    What would be the best way to check this out? Should I make an amended return or would it be best to use the VDP route assuming the deduction was improper.

    Thanks

    ReplyDelete
    Replies
    1. Hi Anon

      If your insurance paid for the hearing aids, you should not have claimed a medical expense. Your should do a T1 Adjustment if you want to fix this.

      Delete
  37. My employer paid me a Christmas bonus with a cheque in 2012 for $5000. I was also given a gift card for $250 to a department store in 2011 for Christmas. I was new to Canada at the time and didn't declare and pay taxes on it, believing both of these amounts to be gifts. I have since learned that I should have paid taxes on the amounts. I've heard all kinds of advice from various people... don't worry about it, just leave it be, don't tell the CRA at this stage...

    I don't want the CRA to audit me one day and find this, but I just wanted to know if the VDP route would be appropriate for this situation?

    What consequences might my former employer face if they just gave me that cash or near cash gifts, when I reported it as income, but those items had never been included through the payroll system?

    ReplyDelete
    Replies
    1. Hi Anon

      This is a loaded question and thus I will not answer it. Sorry.

      Delete
    2. The question I have doesn't really mean to be a loaded one. I guess I know I could make a VDP on this to protect myself, but should I talk to my former employer first about this so they can also talk to the CRA and make it right? Don't they have some responsibility for putting it through payroll? I really want to get some clarity on whether I just declare the income, or whether I should do this with my former employer involved or not.

      They could be likely to get into trouble for not making appropriate payroll declarations of their own right?

      Delete
    3. Hi anon

      The question is still loaded all I will say is your former employer will likely do nothing as the amounts will have been statute barred

      Delete
    4. Ok, thank you so much for your replies. I will understand if you don't want to answer this anymore, but so just so I understand this properly, if I make a voluntary disclosure on the money they paid me, they are unlikely to have any consequences from the CRA of their own?

      Delete
  38. I, Like another poster on here have not filed for many years working out of country only to realize I
    could be considered a resident for tax purposes. do I need to submit T1 returns for each year with the VDP form or wait till accepted. I guess im wondering what "complete" means. I have nothing to submit except the approximate number of earnings

    ReplyDelete
    Replies
    1. Hi Anon

      If you want to find out if you are accepted, use a no names VDP. If not, you must file your T1's with your VDP and hope u r accepted.

      Delete
  39. Hi Mark, how's 1 year past due requirement in VDP calculated? Especially if a person files his/her tax later than the April/30 deadline??

    ReplyDelete
    Replies
    1. Hi Anon

      It is one year from the date the actual return is due, so typically one year from April 30th or if self employed, one year from June 15th

      Delete
  40. Hi Mark, what's best way to disclose t776 forms with no taxes owed that were not submitted for a few years, can you use VDP process?
    (CCA was used to offset incomes)

    ReplyDelete
    Replies
    1. Hi Anon

      You would likely not qualify for the VDP as there does not appear to be any penalty or taxes owing. I would have to look into whether a T1 adjustment for each year would do the trick, but I dont have time to review and thus, I have no definitive answer for you. sorry

      Delete
  41. Hi Mark,
    A person wants to make VDP. But there are some concerns would like to have your opinion.
    1. He wire transferred 12K from his offshore account to his daughter early this year. If his daughter is questioned or going to be questioned by CRA about the source of this transfer, will this invalid his VDP?.
    2. If his no-name VDP is accepted, but CRA find his name was already under radar after receiving his identity , will this invalid his VDP?
    3. He has offshore bank accounts and foreign pension income (No T4 or such thing in that country) . What kind of supporting document he should provide in order to satisfy CRA's VDP requirement?

    ReplyDelete
    Replies
    1. See Q & A

      1. He wire transferred 12K from his offshore account to his daughter early this year. If his daughter is questioned or going to be questioned by CRA about the source of this transfer, will this invalid his VDP?.

      A: As long as the income on the funds is reported on the VDP, the gift of the funds should not invalidate the VDP. It is unlikely the CRA will discuss with DTR.

      2. If his no-name VDP is accepted, but CRA find his name was already under radar after receiving his identity , will this invalid his VDP?

      A: “If CRA asks you for information or requests a filing before you opt to use VDP, you no longer have a voluntary status, and no longer qualify for the program.”



      3. He has offshore bank accounts and foreign pension income (No T4 or such thing in that country) . What kind of supporting document he should provide in order to satisfy CRA's VDP requirement?

      A: Bank deposits or anything to substantiate the amounts.

      Delete
    2. Hi Mark,

      Thank you very much for your prompt and kindly reply. I am afraid I need further clarification in regarding of my question 1 and 2.

      To make it clear, I would like to re-write these two questions:

      1. He wire transferred 12K from his offshore account to his daughter early this year. If his daughter is questioned or going to be questioned by CRA about the source of this transfer BEFORE he makes VDP, do you think he is still qualified for VDP?.

      2. If his no-name VDP is accepted, but CRA find his name was already on their internal "going to contact" list (but CRA has not yet contact him) after receiving his identity , will this disqualify his VDP? Sorry for the invented the term of "going to contact" list, because I do not know how CRA works.

      Thank you again for your great help

      Delete
    3. He wire transferred 12K from his offshore account to his daughter early this year. If his daughter is questioned or going to be questioned by CRA about the source of this transfer BEFORE he makes VDP, do you think he is still qualified for VDP?.

      A: The CRA has no reason to question his dtr,I think it very unlikely his dtr will be questioned - if she is being questioned, that could be problematic for the VDP if the CRA argues that made you aware of an enforcement action. Not sure how that would play out


      2. If his no-name VDP is accepted, but CRA find his name was already on their internal "going to contact" list (but CRA has not yet contact him) after receiving his identity , will this disqualify his VDP? Sorry for the invented the term of "going to contact" list, because I do not know how CRA works.

      a: if you have not been contacted, how can there be an enforcement action against you

      You sound like you should get some assistance in making your VDP-speak to your accountant or engage one

      Delete
  42. Hi Mark,
    I much appreciate the wealth of information you provide here.
    I have a question for my 2015 return. I have some errors/omissions on it in my rental property and the amounts are less than $2000 in total. I regret this and have been losing sleep over it. I understand that the VDP is only valid one year after submitting a return, so I would have to wait until 2017 to use that program. What are my other options - I can make an adjustment I think - is there any other option? Besides penalties is there any likelihood of prosecution in such a case for that kind of amount?

    Thank you,
    W

    ReplyDelete
    Replies
    1. Hi Anon

      For such a small amount I would tend to just file a T1 adjustment. Typically the CRA has much bigger fish to fry and will not pay much attention to this type of adjustment. Typically you will only be assessed the tax owing and some small interest where you already reported your rental income on a timely basis on your 2015 return.

      Delete
  43. Hi Mark
    What do you know of the installment program that CRA has. They want a extra $4500 over this year since will we owe of be over the allotted $3000 at the end of the ear due to capital gains, and if we don't pay we are changed interest. We where charged $100 in interest last year because we did not pay the installment plan, why can we not object to this and only pay "at tax time". Do you have any suggestions.
    Also when did this come into law?

    ReplyDelete
    Replies
    1. Hi Anon

      This has been the law for many many years. Your personal installments are always the lessor of your last years actual tax owing and your current year actual. That creates issues such as you have where the prior year is probably higher than usual but since you do not know what your current years tax liability will be and whether to make installments based on last year to avoid interest, or reduce them since you expect your tax to be less. I cannot provide guidance, you have to make a conservative decision to pay as requested, or reduce the installments, but if you are wrong and you tax is greater than the current year installments, you will owe interest and maybe tax. Not a clear decision

      Delete
  44. Hi Mark. It's very refreshing to find a website with some real people and their experiences with the VDP. As said, I am almost stressing myself to death that even though I have submitted a VPD I am somehow getting in a lot of trouble. I am self-employed and have struggled financially for a few years. I receive compensation via T4As and some direct payments from a company that I work as a contractor for. In 2013 I completely forgot to add in my $20,000 worth of direct payments. I submitted a T1-Adj for this recently. For 2014 and 2015 I had about $40,000 each year in direct payments which I didn't declare as I couldn't afford to pay the tax. I figured that I could file my returns with all of my T4A income and then eventually I would submit T1-Adjs for the other amounts when I could afford the taxes. I figured that filing the returns would at least keep CRA off of my back. Well, 6 months later it turned into 1 year later and now it's 2016 and I want to come clean and get this off of my back. I filed a VDP and am awaiting results. Do you think I would fall in the typical type of VDP submission or should I be concerned as I am?

    ReplyDelete
    Replies
    1. Hi Anon:

      I think if you asked most accountants, they would suggest you fall into the typical case. I am not sure why you did not however file a VDP for 2013 to 2015 at the same time.

      Delete
  45. Hi,

    My husband just submitted his last three tax years (both business and personal - he's self employed) under the VDP through his accountant via efiling. That was about 3 weeks ago. When he called the VDP and spoke with an officer yesterday they couldn't tell him if his package was with an officer yet for review but that it would have to be reviewed manually. His accoutant did speak with a CRA officer and went over all of the number and returns with that officer prior to filing. We're just wondering typically how long the process takes before we can realistically expect to see my husbands NOAs back? Again, they were submitted about 3 weeks ago.

    ReplyDelete
    Replies
    1. Hi Anon

      VDP has a huge backlog. It could a fair bit longer, I cannot provide a timeframe, I would just keep checking with the CRA every couple weeks until they can provide some clarity of a timeline.

      Delete
  46. Hi BBC
    2012 and 2013 T1years my accountant had shown my foreign holdings entirely of public stocks "no" as to over $100,000. I did not notice for a long time but certainly did not register for a real long time (i have Brain disability tax credit from Brain Exhaustion/pain and can only get about 20% of daily activities done on average)activities. I had delivered to him my monthly statements at tax time which show month end in at least some months exceeding $100,000 and assumed for a long time he must have gone over everything (now I doubt that he did as he operates high volume income tax returns with extra people doing T1's at tax time)and who was i to correct when i began to have some doubts of his diligence. In 2015 while reviewing 2012 T1 and my monthly brokerage statements for another reason I began to have serious doubts about that "no" and had then gained some knowledge of T1135's so checked with CRA information. As a result i went back to my CMA and he finally filed T1135's July 2015 for those 2 years. In April 2016 I was reassessed by CRA $2500 for each year for non file of these forms with about $560 including back interest on the penalties.
    Accountant kept telling me that he filed a RC4288 in mid May 2016 but a second check with CRA in mid September by myself and indicated no such filing and he said he stated therein that there was no intent to hide anything here as all foreign income and source was reported on the T1 (he did not copy me as with the T1135's even after several requests).

    So i think i should file my own RC4288 covering the 2 years and need advice. Should I:
    1. in any way blame my accountant even tho i believe he is at fault close to 100% - if I do will RC just believe my accountant's acts are my acts and i should just look to him for compensation
    2. Just go ahead as if entirely due to my Disability which truly caused me not to register the mistake in my brain and the accompanying that i did not have any knowledge of form T1135 and significance
    3. In any way blame Cra as when i did gain some knowledge of T1135 its title just refers to income and not assets and that mislead me for some time in that i thought all foreign income was reported elsewhere in T1.
    4. I would prefer not to use up my one time voluntary disclosure relief i just heard about

    Your help would very much be appreciated as i am agonizing over this. (i ofcourse paid the fine and interest)

    ReplyDelete
    Replies
    1. Hi Anon

      I think #3 is a no go, the CRA had nothing to do with this.

      #4 is too late; based on the facts you provide, was a VDP not considered as your first course of action?

      #2 is an option, but I dont think entirely true.

      #1- It is not my place to answer this question and will not do so. The answer to my question in #4 may be a guide in making your own decision.

      Delete
    2. Thanks Mark for your assistance. I guess I will go ahead with the Relief Application setting out all the facts as I generally interpret your answers
      As to #1 i was hoping for answer to degree cra generally holds the Accountant's act or failure to act as the Taxpayer's Act. As to #4 I never knew that such an option was available to use in this situation until a couple of weeks ago as mentioned by another accountant and not sure how the answer to that leads me to a solution as to which direction to go? (perhaps i am misinterpreting and you are saying i should not file a relief form ie it is hopeless in my situation?)thanks again and hope you can further clarify.

      Delete
    3. Hi Anon

      Last response as I told you I will not answer what you should do.

      #1- Relief will not typically be granted by the CRA because of your accountants actions or failure to act. Thus, dont count on being granted relief if you try that course.

      #4- why were you not aware until told by another accountant? Why was this not a considered option? Don't write back i will not respond, but consider these questions

      Delete
  47. I filed my 2015 income tax on time & received a notice of assessment dated May 2/16 with a small tax refund. Today I received a notice of reassessment stating that I owed an additional $7,452.32 due to a non eligible retiring allowance I received. I was not aware that this was considered other income. However, I am prepared to pay the $7,452.32 but not the $211.26 interest charges they want because, since my T4 was included in my documents submitted...when I received the original tax reassessment they should have notified me at that point.
    What should be my next step?

    ReplyDelete
    Replies
    1. Hi Anon

      I would just pay the $211. The fact you accidentally missed reporting income does not negate the fact interest is owing from April 30th. If it really bothers you, pay it and then file a submission to fairness, you will most likely lose, but it may make you feel better.

      Delete
  48. Hi Mark, interesting blog! I have a really small issue - was just charged $500 for sending in my T1135 24 days late (first time I did my own taxes since moving to Canada and I simply was ignorant). Does "I'm a dummy and I'm sorry" ever work on a RC4288 request? Or do I have to pay up and hopefully not make that expensive mistake again? $500 seems so steep for sending in a form 3 weeks late. Thanks!

    ReplyDelete
    Replies
    1. Hi Anon

      I'm a dummy and sorry typically does not work, but I have occasionally seen it work. So try it, no downside

      Delete
  49. Ha okay, thanks!! Also, even if I appeal / ask for forgiveness, should I pay now to avoid further interest - or should I wait to hear back from them? Thanks again - much appreciated!

    ReplyDelete
  50. I would pay now and assume you are not getting money back, if you do, it is a bonus.

    ReplyDelete
  51. I bought and sold a house 10 years ago using the First Time Home Buyers loan. I didn't repay the loan at the time because I thought I had 15 years to repay it, but recently read that it has to be paid if you sell. Should I use the VDP or since it's my RRSP money, can I just repay it through the CRA with interest?

    ReplyDelete
    Replies
    1. Hi Anon

      Sorry, but I rarely if ever deal with the the HBP. So I cant tell you the answer off the top of my head.

      Delete
  52. Hi Mark,
    Our strata (condominium), which is located in BC recently became aware that the strata is required under the income tax act to file a T2 within six months of year end. We know we are tax exempt, the strata has no fixed assets, and other than approximately $35,000 in annual strata fees earns less than $300 in banks interest and hence do not have to file a T1044, but apparently we are still required to file the T2. In looking at the T2 we noticed that we also need a Business Number which we do not have. We want to comply with the requirements of the Income Tax Act.
    Questions:
    1) Can we apply under the Voluntary Disclosure Program?
    2) What are the chances of the non-filing penalties being waived?
    3) Also should we start the process on a NO-NAME basis?

    Thanks,
    Al

    ReplyDelete
    Replies
    1. Hi Al

      I dont provide specific tax advice on this blog. You need to ask your accountants or engage a firm to assist you. My guess is the CRA would likely accept and waive penalties, since this is such a small VDP. Again, you need specific advice as I am not aware of all the details.

      Delete
  53. Hi Mark,
    If I recently received a letter requesting documents for a credit that I had claimed in error (I had since then paid back the disallowed amounts), am I not qualified for VDP for an unrelated matter?

    ReplyDelete
    Replies
    1. Hi Anon

      Sorry, but I can't give you a definitive answer, the CRA may argue the info request triggered the VDP or maybe not, depending upon the actual facts. Not clear cut in my mind at least.

      Delete
  54. Hello,
    I believe I'm a logical candidate for the VDP on a "no-names" basis, after extensive research, as I haven't declared foreign-sourced income since returning to Canada in 2003. However, I have concerns:
    - information suggests that the taxes owing should accompany the VDP application but I haven't the faintest idea what that sum could be, as I kept poor (or no) records of amounts invested, interest income paid and date of payment to calculate prevailing exchange rates. Plus, I gather from reading extensively that CRA might choose to focus on only some years. What should I do?
    - Given that interest and penalty relief is only for the past 10 years, I could be liable for fees for the period prior to that (as I understand). Am I at least protected from criminal prosecution for those 3 years?
    - I'm concerned about the 90-day time limit for disclosing my identity, given the backlog you cite above. How can I get all the information to them in a timely manner so they can make a determination that I am eligible, if I don't get communication in a timely manner? Do they take that delay into account?
    Many thanks for your insights.

    ReplyDelete
    Replies
    1. Hi Anon

      You need to engage an accountant to a advise you. I dont provide personal planning advice on this blog, sorry

      Delete
  55. Helpful blog, thank you! I have a question of a technical nature: how can CRA communicate with a no-names VDP applicant, without an address or phone number? Disclosing both address and phone number will help them easily identify the applicant. Thanks for your help, Mark.

    ReplyDelete
    Replies
    1. We do it on our clients behalf, so they are not known. To be honest, not sure how it would work if you try to do it yourself.

      Delete
  56. Hi Mark,

    I hear changes to the VDP will be coming March 31 based on the Offshore Compliance Advisory Committee's recommendations. At first, the announcement was for changes to happen late 2017, but now it seems changes are coming in a few days. What is your take on this?

    ReplyDelete
  57. Hi Anon

    Have no knowledge of what is happening in this regard so I unfortunately have nothing useful to say

    ReplyDelete
  58. Hi Mark,

    I am small time tax preparer. As luck would have it, I neglected to push the button to e-file my client's tax return last year and she owed approximately 30k in taxes. This didn't come to our attention until I met with her for this years tax return and she told me there were no amounts printed on her instalment notices for 2017. I checked online with CRA and realized her 2015 hadn't been received. The penalties to date would be around 5k because of the quantum of taxes owing. Having studied the VDP guidelines, May 3, 2017 would be one year from the time the return and the taxes were due and she would be eligible for VDP if we were to apply on that date. The only other possibility is applying for administrative relief, but our circumstances don't seem to meet their requirements of hardship, etc. We do have signed and dated T183 and T5013s which were signed in April of 2016 which would demonstrate good faith, but I have my doubts that this would be enough to qualify for administrative relief. Some of her income is T4RSP and most is spousal support. Earlier in the blog you mentioned that since CRA would already be aware of the T-slip income it might not qualify. In reading the guidelines I'm not sure this would necessarily preclude her from VDP, since she is not under investigation nor has she received a demand to file. Your comments would be most appreciated.


    Thank you.

    ReplyDelete
    Replies
    1. Hi Unknown:

      I am sorry for your situation. I dont know the answer of the top of my head and I am not sure it is entirely clear anyways. My gut feel without reviewing the guidelines in detail is the VDP may be problematic, but why cant you try a no names approach?

      If that works, your good, if not, you have no downside in requesting admin relief.

      Delete