Can You Actually Get a Second Chance With the CRA?
Many people make mistakes on their tax returns and they may not be caught by Revenue Canada. Once the tax payer realizes that indeed a mistake has been made they are not sure what to do, so they just live with the hopes that it will not eventually be detected. Although many of the mistakes are unintentional, there are some that are intentionally made because of various circumstances and then the individual is again plagued with worry that they may get caught.
The CRA realizes that mistakes are made whether intentional or not, and have put a program in place for taxpayers in this situation to basically “come clean” with their tax matters. They like to refer to it as a second chance or voluntary disclosure.
This is your opportunity to come forth with what is wrong in regards to your tax obligations and make them right. It could be that you provided false information, or withheld information that would have an effect on what you owe the CRA.
Don’t think that you can take advantage of this program after the CRA has discovered the discrepancies and as a result is taking action against you. You must take the first step.
Under the voluntary disclosure program the matter that you are correcting must be at least one year overdue. It also has to be related to a tax matter that could result in a penalty. Also, you can expect to have to provide all of the details concerning it.
Many people feel that they would like to take part in the voluntary disclosure, but realize that it most likely is going to result in them owing a sum of money to the tax department that they feel they simply cannot pay at the moment. So they tend to keep putting off the matter and live under a burden of tax anxiety.
It can be nerve wracking dealing with the CRA, because they are recognized as a powerful and influential sector of the government. You may feel more confident and secure following through with a voluntary by using the assistance of a qualified and experienced accountant. This professional can help you determine the exact tax problem you are facing, and how to go about dealing with a voluntary disclosure. By doing this you aren’t going to feel isolated with your tax problem or intimidated when dealing with the issue.
Solving previous tax matters gives you greater confidence in moving forward in future tax years with your tax matters, and you are no longer living under the fear of getting caught in respect to previous tax errors or omissions.