An application for Taxpayer Relief or under the Voluntary Disclosures Program must be prepared carefully. The CRA has discretionary power over whether or not to grant the relief sought. Should the CRA refuse, the judiciary has limited jurisdiction to intervene.
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Voluntary Disclosures Program
Under the VDP, taxpayers are given the opportunity to voluntarily come forward to normalize their tax situation. If you made mistakes in your prior tax filings, failed to file some mandatory forms (such as the T1135) or did not report all your income, you have this one chance at making things right, as long as you meet all the requirements. Time is of the essence because your application will only be accepted if there has been no “enforcement action”. Please contact us if you want to schedule a consultation regarding the VDP.
Taxpayer Relief
The CRA or Revenu Quebec may grant full or partial relief to taxpayers in certain situations, such as:
- waiving the requirement to file specific forms, receipts or documents;
- extending the time for making a return;
- waiving or cancelling penalties or interest;
- extending the time for making an election or granting permission to amend or revoke an election;
- waiving taxes otherwise payable due to RRSP or TFSA overcontributions;
- allowing refunds past the 3-year limit; or
- assessing taxes beyond the normal reassessment period (to the taxpayer’s benefit).
It is important to emphasize that this power of the CRA and Revenu Quebec is discretionary. The relief sought is generally granted only on a case-by-case basis if the guidelines are met. Each application must therefore be prepared carefully.
Contact us to schedule a consultation.