If you owe money to any of the tax authorities because you failed to file a return for one or more years, you can make a voluntary disclosure.
Typical voluntary disclosures include; domestic business income never reported, failure to collect or remit GST/HST and/or source deductions, information returns not previously submitted, foreign wages and benefits not reported, and domestic and foreign dividends and interest never reported.
Relief is determined on a case by case basis.
Things to note:
- You will pay only the tax due plus interest.
- No penalties will be assessed.
- You have to make a complete disclosure.
- The information must be more than a year old.
- Plus you must contact the Canada Revenue Agency prior to the start of an investigation or an audit.
For more information take a look at the CRA’s overview.
As always, if you have any questions we’re here to help! Stop by a Padgett office or call us at 250-744-3854.