The Voluntary Disclosure Program, or VDP, in Canada is a special program so that taxpayers can correct any typographical errors, vital inaccuracies or other such mistakes in their tax form submissions. The Canadian government hopes to simultaneously collect more tax revenues, and also help the Canadian taxpayer adhere to the law and therefore be more honest. The taxpayers can hope to avoid any penalties or prosecutions under this program. Most Canadian taxpayers can start the VDP process by filling out the form known as RC199, or the Taxpayer Agreement. They will, of course, need to also submit supporting information for their tax claims. They can have an authorized representative for this tax process. They will need to fill out some specialized forms for this representation. These forms include the Form T1013, which authorizes or cancels the official representative, as well as form RC59, which is the business consent form. It is important for taxpayers to take their responsibilities seriously, get help with their returns when needed, and act fairly and honestly.
The Tax Amnesty program in Canada is for the taxpayers to catch up with or fix their already submitted tax forms. Many taxpayers have underreported or made some kind of math errors on their tax returns. The government of Canada hopes to make honest and detail-oriented people of more and more of their citizens. In addition, they hope to gather a significant amount of back taxes. The tax system has to be fair and proper application of the rules for everyone is essential. If the tax system is perceived to be unfair, then many taxpayers will question paying their fair share. The specified taxes can be on income, business revenues, tax credits, pensions, capital gains, and GST [goods and services tax] benefits or credits. The Tax Amnesty program also is making the country of Canada more responsive to its citizens, especially its global citizens. The CRA, or Canada Revenue Agency, is increasing their oversight of all taxpayers. They are reaching out globally, coordinating with other countries, coming up with multinational agreements, and using many high technology tools in their quest for proper tax enforcement. Therefore, there is a huge risk for not reporting all of your income to the Canadian government. The people that are utilizing the tax amnesty program will likely need a lawyer, and should be aware that penalties are probably going to apply to them. Also, the disclosure must be a written document, and mailed to the proper authorized Canadian tax center.
Taxpayers must qualify for the Voluntary Disclosure Program [VDP] before they can take advantage of it. The disclosure must exactly meet the following four items to the letter. Firstly, the disclosure must be totally voluntary. Secondly, the disclosure has to be totally complete. Thirdly, the disclosure must have some penalty that is to be applied to the taxpayer. Lastly, the disclosure must be over a year overdue. It is critical that all of these items apply to the VDP participant. If they have any doubt if they qualify for this program, they can have their information reviewed by a specialist before they go further with their application for the VDP. The Canada Revenue Agency, or CRA, is the governmental agency that handles all of the taxation issues for Canada. They have many big programs to help people, charitable organizations and businesses. They hope to reduce red tape especially for small businesses, help for working families, special programs for low-income individuals, and make sure that all can comply with the tax code. Most importantly, the CRA amnesty program is designed to ensure that everyone can obey the laws of the land. A special program now is warning people that some fraudulent emails that look like they come from the CRA are now circulating. They also have a great set of videos to help people with their Canadian taxes.
The Canadian CRA also has a multitude of social programs and economic benefits and incentive programs that are administered as part of the tax system. They have a very specific charity giving process, and taxpayers are encouraged to participate in charity to help the needy people in Canada. Any developed country has a need for taxation to take care of the poorest of the citizens. The CRA has a ministerial structure, and this helps with the Voluntary Disclosures program. The CRA has a minister, two commissioners, and a substantial board of managers. Andrew Treusch is the commissioner of revenue and it’s Chief CRA Executive Officer. Bill Jones is the CRA deputy commissioner of revenue. He is from Saskatchewan, and is and economist trained at the University of Guelph. The board of managers is somewhat less political, and they make sure that the whole department and environment runs quite efficiently and fairly. The CRA values and guiding principles are integrity, professionalism, respect and cooperation. In fact, the CRA considers integrity to be the foundation of their whole program and mission. The Canadian government is very committed to the Tax Amnesty program, and has a wider ranging holistic vision that will ensure its success.