DO YOU OWE BACK TAXES
DID YOU FAIL TO DECLARE TAXABLE INCOME?
CRA Offers an Amnesty Program.
Come Clean and You Can Get a Second Chance
VOLUNTARY DISCLOSURE OF
UNDECLARED INCOME TAX
CRA says: "You can make this disclosure yourself, for free, and you do not have to hire a third party to help you."
If you do that, you are like a lamb to the slaughter. You need to consult a tax lawyer to be sure you know what you are getting into and to protect you from an overly ambitious CRA clerk with a quota to meet. Remember a survey revealed that 30% of the time CRA staff gave the wrong answer to taxpayer questions.
A lawyer cannot be forced to testify against you. Your accountant has no such immunity and could actually be required to testify against you whether he wants to or not.
DO YOU OWE AND CANNOT PAY?
Back penalties and interest charges owed as a result of natural disasters or severe personal difficulties may be reversed by requesting Taxpayer Relief using CRA form RC4288, Request for Taxpayer Relief.
The RC4288 Request for Taxpayer Relief - Cancel or Waive Penalties or Interest
You can phone them at 1-866-256-1147, but proceed very cautiously. It would be better if you talked to a good tax lawyer first, before talking to CRA
YOU SHOULD CONSULT A TAX LAWYER BEFORE YOU CONTACT THE CRA
If you did not file a return or did not declare everything on your income tax returns or your GST/HST returns, you can get a second chance to set the record straight and come clean.
The CRA (Canada Revenue Agency.... the income tax police) offers a Voluntary Disclosures Program which allows taxpayers to come forward voluntarily and correct their tax situation.
If you make a full disclosure before the CRA begins a review, an audit or an investigation, you may only have to pay the taxes owing, plus interest and avoid penalties or criminal prosecution.
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