How Can the VDP Assist Taxpayers & Why You Need a Tax Lawyer
Few things in life are as stressful as opening a letter from the Canada Revenue Agency (CRA) to discover a tax reassessment. You may be wondering, what did I do wrong? How can I fix this? If you have made errors or omissions on past tax returns, the CRA’s Voluntary Disclosure Program (VDP) might just be the lifeline you need.
But before you dive in, understanding the process and having the right support can make all the difference!
What Is the Voluntary Disclosure Program?
So let’s begin with the basics: what is the voluntary disclosure program?
The CRA Voluntary Disclosure Program is designed to encourage taxpayers to come forward and correct past tax errors before the CRA catches them. It is an opportunity to address unreported income, missed filings, or incorrect information without facing full penalties or legal repercussions.
However, applying for the program is not as simple as filling out a form. To qualify, your disclosure must meet specific criteria, including:
- Voluntary: You cannot already be under CRA scrutiny for the same issue.
- Complete: All errors and omissions must be disclosed, not just some.
- Timely: The disclosure must be made before the CRA initiates an investigation.
- Involves Penalties: Your issue must involve a penalty, such as interest on unreported income or failure to file.
Why You Need a Tax Lawyer
While the VDP may sound straightforward, navigating it without professional help can be risky. Here are some reasons why having an experienced tax lawyer by your side is critical:
- Tax laws and CRA guidelines can be confusing. Tax lawyers are trained to interpret and apply these rules to your unique situation, ensuring your application is accurate and complete.
- Even a small oversight in your VDP submission could lead to rejection–or additional scrutiny from the CRA! A tax lawyer helps reduce these risks, ensuring you meet all program criteria.
- If the CRA initiates a reassessment or has questions about your disclosure, a tax lawyer is equipped to advocate on your behalf, presenting your case professionally and persuasively.
The Role of CRA Tax Reassessment
If your disclosure involves a CRA tax reassessment, the stakes can be even higher. A reassessment can change your tax liability significantly, potentially resulting in hefty penalties. Addressing this correctly requires a deep understanding of tax law and CRA procedures, which is another reason why a skilled tax lawyer is invaluable.
Don’t wait for a CRA tax reassessment to catch you off guard. If you have made mistakes in your tax filings or suspect you might have, the Voluntary Disclosure Program offers a chance to set things right.
Contact our experienced tax lawyers at Taxpayer Law today! We will guide you through the CRA voluntary disclosure process, help you correct past errors, and ensure your financial future is secure!
Contact us today to take control of taxes.