CRA to restrict the incentives offered to late-filing taxpayers

Photographer: Nick Le

Photographer: Nick Le


“The Canada Revenue Agency will no longer allow Canadians to benefit from financial relief when they disclose unreported income in cases that involve offshore dealings or sophisticated tax-avoidance schemes, federal officials said. Starting in March, the federal agency will restrict the incentives offered to late-filing taxpayers under the Voluntary Disclosures Program,” wrote Daniel Leblanc for The Globe and Mail on December 15, 2017.

Leblanc continued, “The changes to the VDP are part of a federal clampdown on tax evasion and aggressive tax avoidance, especially in cases involving the use of tax havens. The Liberal government has been scaling back the financial benefits of owning private corporations, but there is growing pressure on Ottawa to maximize the revenue from wealthy individuals and corporations with access to sophisticated tax lawyers and accountants.

Under a new “limited” VDP that will apply to wealthy taxpayers involved in complex schemes as of next year, the CRA will offer immunity from criminal prosecution and waive “gross negligence” penalties to successful applicants. However, to qualify under the newly configured program, individuals and companies will have to pay all owed taxes, full interest and late-filing penalties – amounts that were frequently lowered or waived under the existing program.”

Read the full article here. 

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