Hi Nick,
No problem at all — your questions are great, and I understand the desire to ensure your Voluntary Disclosures Program (VDP) submission is both thorough and concise! Here’s a detailed breakdown of how you can approach these issues:
1. T1-Amended Return and T1-Adj Form Submission
When submitting the T1-Amended Return and T1-Adjustment form, it’s not necessary to send every page of the T1 General, especially if it includes large attachments like schedules, claims, benefits, etc. For VDP purposes, you typically want to send:
- The first four pages of the T1 General for each year (as you mentioned).
- Attach only the relevant schedules that are being amended. For instance, if you’re correcting income, you’d include the income statement schedules. You do not need to include all of the documents that were part of the original filing unless they are part of the amendment.
The goal here is to send a clear and focused package — so just the T1 General form (first 4 pages) plus any affected schedules (e.g., T1-Schedules for income, deductions) are what you need to submit.
2. Foreign Bank Account Details
For the foreign bank accounts in question, you don’t need to submit all 8 years of bank statements. The CRA does not require every deposit and withdrawal for the entire period, especially if it would amount to a massive volume of documents. Here’s how to approach it:
- What to include: Provide a summary of foreign bank account balances (start and end balances for each year, not individual transactions).
- If you earned interest income, include the total interest earned for each year (this would be sufficient unless the CRA specifically requests more detailed documentation).
- Do not include every individual transaction or deposit unless explicitly asked. If your foreign account is being used to hold or transfer money, just summarize the activity for each year.
3. Canadian Bank Statements for Foreign Remittances
Regarding your Canadian bank accounts from which you sent money to the foreign bank account, unless the CRA requests specific details about the source of funds or individual transfers, you do not need to include every transaction.
Instead:
- Provide a summary of the total remittance amount sent abroad for each year (e.g., total sent from your Canadian account to the foreign bank via TransferWise, XE, etc.).
- If you’re providing remittance information (like through third-party services), include a summary or annual total remitted from your Canadian account. You don’t need to provide all the individual transactions or explain each one in detail.
4. Third-Party Remittance Services (e.g., TransferWise, XE, Remitly)
When it comes to the third-party remittance services (like TransferWise, XE, etc.), you don’t need to submit every single transaction or remittance statement. The CRA is interested in understanding the total remittances and the amount transferred. Here’s what you can do:
- Provide a summary of the annual remittances sent via these services.
- You don’t need to include all the remittance receipts unless you have been specifically asked by the CRA to provide them. If you’re including summaries, include the total amount transferred in each year (this can be organized in a simple table or Excel sheet).
General Guidance on Documentation for the VDP
You’re absolutely right in not wanting to overwhelm the CRA with unnecessary documentation. Clarity is key in your VDP package. Here are the best practices to follow:
1.Excel Summary: It’s a great idea to organize the key details (e.g., foreign account balances, remittance totals, interest income) in a clean, easy-to-read Excel sheet. This helps the CRA understand the information without having to sift through large quantities of documents.
2.Clear Concise Documents: Along with your summaries, you should include only the key documents:.
- T1 General Forms (first 4 pages) and relevant schedules.
- Summary of foreign bank accounts with total balances and interest.
- Summary of remittances made to foreign accounts.
- Any supporting documents for specific amendments (if required), but avoid overwhelming them with every transaction detail unless asked.
3.Keep the Package Focused: Make sure the documents are well-organized and that you’ve explained why certain documents are included. Provide just the essentials to avoid confusing the CRA.
SOCIAL CONNECT