CRA Voluntary Disclosure Program – Tax Debts?
CRA Annual Letter Campaign – Message to Tax Professionals – CRA Voluntary Disclosure
CRA conducts reviews and audits of your personal and small business taxes on an annual basis. They have set up many programs over the years to randomly encourage those individuals who may have undeclared income to come forward, without penalty, to declare that income through their Voluntary Disclosure program. If you believe that you have income that has not been declared, such as rental income, then you have an opportunity to do so at any time. Further, if you have other debts and are considering a formal debt repayment plan such as a consumer proposal then it is a good time to fully disclose any issues to CRA prior to filing such a plan to ensure that all of the debt, know or otherwise, is captured in your proposal. If you have tax debt, our free consultation can help you find you solve your tax debt problems.
The Canada Revenue Agency (CRA) will soon be conducting its fifth annual letter campaign. In January 2014, the Small and Medium Enterprises Directorate of the Compliance Programs Branch will once again send educational and intent-to-audit letters to selected groups of Canadians through the Office Audit Letter Campaign. The campaign supports the CRA’s increased emphasis on helping individuals and small businesses to better understand their tax obligations and to encourage them to correct any inaccuracies in their past income tax and benefit returns.
The CRA will send approximately 33,000 letters to randomly selected taxpayers who claim business or rental losses or are employees who claim employment expenses on line 229 of their income tax and benefit return.
The campaign is part of the CRA’s efforts to encourage voluntary compliance among groups of taxpayers who, our research indicates, may be at risk of non-compliance.
The CRA gives taxpayers a chance to come forward and correct their tax affairs through My Account, a T1 Adjustment Request or the Voluntary Disclosures Program, and taxpayers are taking advantage of these opportunities.
If you or your clients have questions about the CRA letter campaign or need help making changes to previously filed returns, go to www.cra.gc.ca/lettercampaign, call the Individual Income Tax Enquiries line at 1-800-959-8281, or call the Business Enquiries line at 1-800-959-5525.