The CRA’s voluntary disclosures program offers an opportunity for taxpayers to come forward and correct tax returns from previous years. The program is commonly used for taxpayers who would like to repatriate offshore funds. It enables taxpayers to avoid penalties and potential prosecution on information accepted under the program. Disclosures can be made anonymously.
There are four primary conditions to the CRA’s voluntary disclosures program:
- the disclosure is voluntary (made before you are aware of CRA compliance action;
- a penalty applies;
- the information is at least one year overdue; and
- the information is complete.
We assist our clients with the filing of anonymous or “no-name” disclosures. This provides clients with an opportunity to receive a better understanding of the relief they will be entitled to under the voluntary disclosures program. Based on the advice of CRA, the taxpayer can decide whether they want to disclose their name an obtain the relief. It is critical to note that if there is any discrepancy between the information provided and the information verified once the taxpayer is identified, the CRA’s preliminary advice may no longer apply.