It is the CRA’s policy not to impose penalties when a voluntary disclosure is made.
If a taxpayer has never filed tax returns and the returns are then voluntarily filed, the taxpayer will be required to pay only the tax owing—with interest—on the reported incomes. If a taxpayer has given incomplete information in a return and subsequently submits the missing information, the taxpayer will be required to pay only the tax owing on the adjusted income, with interest.
To make a voluntary disclosure, you have to initiate the process. A disclosure is not considered voluntary if it arises when the CRA has begun an audit or a request for information has been issued. Schedule an appointment with me today regarding initial contact with the tax department and the information to be provided.
Ministerial discretion to waive interest and penalties
* Fay Chrisohou Professional Corporation, Chartered Professional Accountant is a licensed and registered accounting firm with the Chartered Professional Accountants of Canada