15
cANAdIANlAwyermAg.com/INhouse DECEmBEr 2014
Q U I Z Ryan L. Morris, partner, WeirFoulds LLP
GO TO CANADIANLAWYERMAG.COM TO
WATCH A WEIRFOULDS LLP LAWYER TALK
ABOUT THIS QUIZ.
1
Is it true that there have been a number of recent developments that may increase the
chances of the CRA detecting past non-compliance with Canadian tax laws before it is
voluntarily disclosed?
(A) True
(B) False
(C) It depends
2
The CRA can provide relief under VDP regardless of when the non-compliance occurred.
(A) True
(B) False
(C) It depends
3
At a certain point, the CRA can no longer assess a taxpayer for the non-compliance
because the applicable taxation year becomes statute barred.
(A) True
(B) False
(C) It depends
4
Is it true there is no way of obtaining comfort that a voluntary disclosure will be accepted
before making full disclosure?
(A) True
(B) False
(C) It depends
Volunteering to pay
taxes could save
you money
The Canada Revenue Agency's
Voluntary Disclosures Program
gives taxpayers a way to come
forward to put their tax affairs
in order and correct past non-
compliance. Taxpayers who use
this program must pay any taxes
owing, but they can avoid costly
penalties and prosecution, and
may also be entitled to partial
interest relief.
Taxpayers can disclose
unreported income, non fi led
returns, and can correct errors
or omissions on previously fi led
returns. A voluntary disclosure
can relate to, among other
things, income tax, goods and
services tax/harmonized sales
tax, Canada Pension Plan and
Employment Insurance, and
excise taxes and duties.
In its 2013-14 annual report
to Parliament, the CRA indicated
that it processed 14,624
voluntary disclosures reporting
more than $813 million in
unreported income.