I have missed to report foreign income for the last 3-4 years from deposits in India. About 6-9K per year and would have exceeded 100K in total deposits in 2023 and 2024. Please suggest if I should go for VDS or refile.
Missed foreign Income
Ask Allan a Tax Question and he will respond to you with an answer to your question within 24 hours!
Thank you for your question.
Based on the facts provided, this is likely something that should be corrected proactively. Since you missed reporting foreign income for the past 3 to 4 years, and your total foreign property appears to have exceeded CAD $100,000 in 2023 and 2024, there may be two separate issues:
- Unreported foreign income on your Canadian tax returns
- Possible missed Form T1135 filings for the years your foreign property exceeded CAD $100,000 cost amount
In many cases, this can be corrected by filing amended returns and any missing T1135 forms. However, if there is a risk of penalties, the Voluntary Disclosures Program (VDP) may also be worth considering. The right approach depends on the exact facts, including:
- whether CRA has already contacted you
- whether T1135 was missed
- the cost amount of the deposits each year
- the amount of tax owing, if any
- whether this was simply an oversight
Please note that VDP is generally used where there is a penalty exposure and the disclosure is voluntary and complete. If CRA has not contacted you yet, it may be better to address this sooner rather than later.
Because this requires a year-by-year review, we recommend booking a 30-minute paid consultation with Allan for $140 + HST so we can review your situation and advise on the best correction method. You can book here:
https://calendly.com/allanmadancpa
Also, please update the forum post with the above reply.
Suggested tags you can use:
- Foreign income
- India income
- T1135
- Voluntary Disclosures Program
- VDP
- Amended tax return
- Foreign reporting
- Canadian tax resident
Thank you,
SOCIAL CONNECT