December 15, 2017: Canadians work hard and expect their Government to do the same to ensure a tax system that is equitable, where everyone pays their fair share. The Canada Revenue Agency’s (CRA) Voluntary Disclosures Program (VDP) is a way for taxpayers to correct errors in their tax affairs. However, this program has been used by certain wealthy individuals and corporations as a way to avoid the consequences related to their aggressive tax planning.
Today, the Honourable Diane Lebouthillier, Minister of National Revenue, announced changes to the VDP to tighten the eligibility criteria to access the program and ensure that it fulfills its purpose of allowing Canadians to come forward and correct honest mistakes. Beginning March 1, 2018, a limited program will apply to taxpayers who have intentionally avoided their tax obligations. To determine if taxpayers have intentionally avoided their tax obligations, the CRA will consider a number of factors, including, but not limited to: whether efforts were made to avoid detection through the use of offshore vehicles or other means, the total dollar amounts involved, the number of years of non-compliance, as well as the sophistication of the taxpayer. Corporations with gross revenue in excess of $250 million who will apply to the VDP will be considered under the limited program.
For more information: https://www.canada.ca/en/revenue-agency/news/2017/12/minister_lebouthillierannouncestighteningofthevoluntarydisclosur.html