Come clean on your income tax.
(NC)-Didn't include the right information on your income tax return, or didn't file a return at all? Owe money as a result? The Canadian tax system is based on voluntary compliance and making our own assessments of how much tax we owe. The vast majority of taxpayers comply with our tax laws, however, mistakes and omissions do happen.
You can report any mistakes or omissions and pay any money owing, including interest. And you can do that by making a voluntary disclosure to the Canada Revenue Agency without penalty or prosecution.
In order to be valid, your disclosure must meet four conditions:
It must be voluntary. You must initiate the disclosure. The program is not intended for taxpayers under audit or investigation.
It must be complete. You must provide full and accurate details of all of the information you wish to correct.
It must involve a penalty. The program provides a way for taxpayers to avoid paying penalties due to previous omissions. If you do not risk paying a penalty, you do not need to use the program, though you should still provide the information to the CRA, so that they can make the necessary adjustments.
It must include information that is at least one year past due. The program is not intended as a way to avoid paying the late-filing penalty.
There is a myriad of information about fixing your tax mistakes on the CRA's website at www.cra-arc.gc.ca. Just type in "voluntary disclosure" in their search engine and it will take you where you need to go.
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