CRA Urges Canadian Taxpayers To Voluntarily Disclose

by Mike Godfrey, for LawAndTax-News.com, Washington

08 April 2009

The Canada Revenue Agency (CRA) is urging the country's taxpayers to come forward and amend incorrect tax information using their Voluntary Disclosures Program.

The scheme encourages taxpayers who have failed to file accurate tax returns to come forward and make the necessary corrections without being penalized, criminally investigated or prosecuted.

For the 2007-2008 fiscal year, the CRA processed approximately 8,400 disclosures for taxpayers who used the Voluntary Disclosures Program to get a second chance to comply with their tax obligations.

The CRA claim:

"Coming clean saved these taxpayers from an audit or a criminal investigation, which could have resulted in penalties, fines, and even jail time. These disclosures resulted in more than CAD373m (USD300m) in assessed additional taxes."

"By encouraging taxpayers to come forward and correct the information they filed with the CRA, the Voluntary Disclosures Program helps protect the tax base and puts all Canadians on a level playing field."

"If taxpayers make a full disclosure before the CRA starts any compliance action or investigation, they may only have to pay the taxes owing plus interest, but not penalties or face prosecution."

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