Know about Voluntary Disclosure Program
                     Know about Voluntary Disclosure Program
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ogram-vdp-in-canada-come-clean-with-taxman/
As per the income tax laws and rules in Canada, tax residents of 
Canada must report their worldwide income. Often, taxpayers miss 
reporting their income or assets. Such non-compliance can be either 
intentional or unintentional.
Taxpayers who have not reported their income in Canada when 
they should have, are always on the hook for penalties. If the 
amounts involved are not substantial, normal penalties apply. 
However, when the tax omissions cross certain thresholds or are 
intentional, there are gross negligence penalties and even criminal 
prosecution.
CRA Voluntary Disclosure Program
Luckily, CRA runs a program called the Voluntary Disclosure 
Program a.k.a. VDP. Under the voluntary disclosure program, 
taxpayers are granted relief from the penalties and the criminal 
prosecution. In some cases, interest amounts are reduced as well.
VDP Application Requirements
For an application to qualify under the CRA VDP program, it must 
meet the following five conditions.
1. The application must be voluntary. You cannot get relief under 
the program if CRA has already contacted you. It is purely 
voluntary.
2. There should be a penalty or potential of the penalty involved. If 
you are going to get refunds as a result of the application, it does 
not have to go through VDP.
3. The application must be complete. You must attach all the 
supporting documents, information returns and adjustment 
requests. Incomplete applications can result in the rejection and a 
disclosure together. As a result, you are not protected.
4. The information you need to correct must be at least one past 
year due.
 
5. You must pay your estimated taxes owing while applying. If you 
cannot pay, a payment arrangement request must be there.
General Vs Limited Voluntary Disclosure Program
If your mistakes, errors or omissions are unintentional your 
application is processed under the General program. It provides you 
relief from the penalties and reduces interest charges. 
If CRA assesses that your omissions and mistakes were intentional, 
it will process your application under a limited program. Under the 
limited program, you get protection from criminal prosecution and 
gross negligence penalties only.
How to file the VDP application?
Fill out the form RC199 and attach all supporting documents, mail it 
to CRA.
A good overview of the CRA Voluntary disclosure program c
an be found here
.Maroof HS CPA Professional Corporation is a professional accounting 
firm in the Greater Toronto Area. As professional income tax 
accountants, it has successfully processed many Voluntary disclosure 
programs with Canada Revenue Agency.If you are looking for a 
professional accountant with experience in VDP Applications, you can 
contact Maroof HS CPA Professional Corporation.
You can reach us at:
3-100 Hanlan Road, Woodbridge, ON L4L 4V8
Phone: (647)724-4308
Email: [email protected]
https://www.maroofhs.com/contact/
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