A LITTLE LATE?If you are late filing your tax return for the past years return then you have the consequence of a penalty charged against the amount that you owe. (If you do not owe, but expect a refund then this does not apply, just file and request your refund...)The Penalty is 5% plus 1% additional for each full month after the deadline that you are late.Naturally the best advice is to JUST DO IT as soon as possible. Then if you are entitled to receive a refund, then great.If you owe money then apply for the Revenue Canada installment plan. |
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Are you Late? Have you missed your return for last year? What do you do now? |
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TAX RETURN TIPS |
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Or A LOT LATE? If you have not filed your return for 2009, or 2008 or another earlier year. You have an option to submit this Voluntarily and to MAKE A REQUEST to have the file accepted WITH OUT PENALTY ! For the full information go to the following links From REVENUE CANADA Voluntary Disclosures page—HTML page—- http://bit.ly/pDOmLk Voluntary Disclosures page—PDF form—- http://bit.ly/pc3DTu I am not using this website to explain the program or answer all your questions I would recommend that you read it for yourself if this issue is relevant to you. However I have copied a few Highlights of the program, to help prepare your thoughts as your read through the government document. Introduction
4. The purpose of this information circular is to provide information about the CRA’s Voluntary Disclosures Program (VDP). Taxpayers can make disclosures to correct inaccurate or incomplete information, or to disclose information not previously reported. For example, taxpayers may not have met their tax obligations if they claimed ineligible expenses, failed to remit source deductions or the GST/HST, or did not file an information return.
Principles of the VDP
8. The VDP promotes compliance with Canada’s tax laws by encouraging taxpayers to voluntarily come forward and correct previous omissions in their dealings with the CRA. Taxpayers who make a valid disclosure will have to pay the taxes or charges plus interest, without penalty or prosecution that the taxpayer would otherwise be subject to under the acts noted above.
Relief Provided Under the VDP
Penalty Relief
11. If the CRA accepts a disclosure as having met the conditions set out in this policy, it will be considered a valid disclosure and the taxpayer will not be charged penalties or prosecuted with respect to the disclosure.
Interest Relief
12. In addition to penalty relief, if a disclosure is accepted as valid by the CRA, the Minister may grant partial relief in the application of interest against a taxpayer in respect of assessments for years or reporting periods preceding the three most recent years of returns required to be filed.
Please note Þ That filling out this form does not guarantee the approval Þ The Result “MAY” include Interest Relief Þ The Potential Interest Relief relates to the years four years previous and earlier. So interest may still be charged on the past three years.
I trust this has been helpful. The best plan is to Phone Revenue Canada and anonymously ask questions 1-800-959-8281 Then contact an experienced Tax Preparer or Bookkeeper (CALL US) and let them do it for you. |
