SUPPLEMENTARY EXAM AUTUMN 2010

Supplementary Exam Autumn 2010

Supplementary Exam Autumn 2010

Introduction

CRA's Voluntary Disclosures Program (VDP) allows taxpayers to come forward and correct inaccurate or incomplete information or disclose information they have not previously reported to the CRA, without penalty or prosecution. A disclosure may be made for income tax and Goods and Services Tax / Harmonized Sales Tax (GST / HST), purposes, and for charges under the Softwood Lumber Export Act of 2006 or safety of air passengers Law Act. "

On the surface, it can be tempting if you have intentionally concealed information that the CRA could discover. But wait a moment. Is not this magnanimous gesture to waive penalties and prosecutions a bit of character with the modus operandi of the ARC normal? Thus, it seems, but the strategy behind this program. It is supposed to look like a bargain, when in reality it is a potential trap.

From the perspective of the CRA, the POS is designed to collect money that the odds say they would not otherwise have. sole purpose of CRA is to collect as much money as they can. The amnesty program has been designed from the outset, to increase profits. If the VDP is not to make profits, the program would be sacked.

So what's the catch? Well, to understand this, we must examine the qualifications requires that the CRA to enter this program. Here's how they describe:

A valid disclosure must satisfy four conditions. These conditions require that the disclosure is voluntary, comprehensive, involving the application or possible application of sanctions, and generally include information that is more than a year late. If the CRA accepts the disclosure, the taxpayer must pay taxes or fees due, plus interest. However, the taxpayer will not be subject to a penalty or prosecution for the amounts accepted as a valid disclosure.

There are two jacks. The first is that disclosure must be accepted as valid, to avoid cost and / or prosecution. If accepted, you will always pay whatever taxes and accrued interest of your communication reveals. Only additional sanctions and criminal charges may be averted. Under the circumstances, this may not amount to significant savings. But the big catch is if your disclosure is not accepted.

If it is rejected, all information disclosed can and will be used against you. Not only will you be still subject to tax and interest, but you will not be exempt from prosecution or sanctions.

Even if your application is accepted by the CRA, you can always end up paying penalties, and there are other risks involved with you through all your financial information to the CRA voluntary disclosure. You could find yourself in an audit of six years. The risk is enormous.

Utah Inc

The Utah State Tax Commission Voluntary Disclosure Program is designed to help businesses and individuals to voluntarily resolve before the liabilities of the business tax. If a company has established a direct presence of representation in Utah, Utah's presence gives the right to require the entity to pay or collect and remit certain ...