I did not file my prior year tax return. This was my first year of operations and I was not aware of my filing responsibilities. As I understand, the CRA will charge interest and penalties for late filing and payment. Is there any way I can get these charges waived?
Yes, we would recommend filing the tax return under the Voluntary Disclosure Program (VDP). The VDP process involves submitting the VDP form along with the completed tax return to the CRA. The purpose of this is to request the CRA to waive penalties related to late filing. You will still be required to pay the taxes owing plus interest to the CRA.
In order to be eligible for the VDP, your situation must meet the following four conditions:
- It must be voluntary;
- It must be complete (include all information to support your disclosure);
- It must involve a potential penalty charge; and
- It must include information that is at least one year overdue.
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.