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| July 2017 |
| CRA proposes substantial changes to Voluntary Disclosure Program |
| Rainer Vietze, CPA, CA, is a senior tax manager in the Toronto office of Collins Barrow. |
On June 9, 2017, the Canada Revenue Agency (CRA) invited public comment on a number of proposed changes to the Voluntary Disclosure Program (VDP). The changes are outlined in Draft Information Circular IC00-1R6 (applicable to income and payroll taxes) and Draft GST/HST Memorandum 16.5 (applicable to GST/HST, excise tax and certain other taxes). Information on the current VDP guidelines, the proposed changes (including downloadable versions of the draft documents) and how Canadians can provide their comments can be found by clicking here.
The proposed changes are intended in part to tighten the existing guidelines to address the perception that by granting similar relief to both an absent-minded taxpayer and a taxpayer who willfully sought to circumvent Canada’s tax laws, the VDP created an unfair advantage for the latter. As expected, the proposals are based, in part, on the recommendations made by the Offshore Compliance Advisory Committee (OCAC), which was set up in April 2016 by the CRA to provide advice on improving the CRA’s administrative ability to deal with offshore compliance. |
 | | Download your copy here |  |
| CRA issues proposed guidelines for GST/HST voluntary disclosures |
| Rainer Vietze, CPA, CA, is a senior tax manager in the Toronto office of Collins Barrow. |
On June 9, 2017, the Canada Revenue Agency (CRA) invited public comment on a number of proposed changes to the Voluntary Disclosure Program (VDP). The changes are outlined in Draft Information Circular IC00-1R6 (applicable to income and payroll taxes), and Draft GST/HST Memorandum 16.5 (applicable to GST/HST, excise tax and certain other taxes). Information on the current VDP guidelines, the proposed changes (including downloadable versions of the draft documents) and how Canadians can provide their comments can be found by clicking here.
The proposed changes are intended in part to tighten the existing guidelines to address the perception that by granting similar relief to both an absent-minded taxpayer and a taxpayer who willfully sought to circumvent Canada’s tax laws, the VDP created an unfair advantage for the latter. As expected, the proposals are based, in part, on the recommendations made by the Offshore Compliance Advisory Committee (OCAC), which was set up in April 2016 by the CRA to provide advice on improving the CRA’s administrative ability to deal with offshore compliance. |
| | Download your copy here | |
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| Collins Barrow periodically publishes Tax Flash for its clients and associates. It is designed to highlight and summarize the continually changing tax and business scene across Canada. While Tax Flash may suggest general planning ideas, we recommend professional advice always be sought before taking specific planning steps. |
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