The Voluntary Disclosure Form: What You Need To Know
Important details that you need to know before you complete form RC199: The CRA Voluntary Disclosure Form. Don’t file a disclosure without reading this. Failing to disclose may result in being charged with tax evasion and facing penalties, interest and possibly jail time.
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RC199: The Voluntary Disclosure Form
Each taxpayer is required to provide the CRA with detailed information regarding their financial situation when they file their taxes. If you made an error on a prior year tax return, if you neglected to include certain information, or if you did not file a return when you should have, there is an option to correct these issues. You can fix prior year returns by completing form RC199, the Voluntary Disclosure Form.
If you complete this form and are accepted under the Voluntary Disclosure Program (VDP), you would be eligible for relief from prosecution and, in some cases, from penalties and interest as well. However, there are certain aspects of the process that you’ll need to be aware of.
The most important one is that your disclosure must be voluntary. This means that you must complete form RC199 and provide the CRA with the missing information before the agency comes to you about it. Since you are providing the CRA with details of your financial life that it does not already know, it’s crucial to handle the process properly.
A potential issue is that you complete the voluntary disclosure form and then the CRA either does not accept you into the program at all or it only accepts you into the Limited Program. Starting on March 1, 2018, the CRA introduced the limited program for those it believes – at least in part – intentionally avoided providing the CRA with accurate information. If you complete form RC199 and the CRA determines that you willfully tried to avoid your tax obligations, you could be placed into this program. If you are, you can still receive relief from criminal prosecution, but you will not receive relief from penalties or interest.
You cannot be certain how the CRA will interpret your voluntary disclosure form until after you have supplied the agency with important information. That’s why it is critical that you work with an experienced professional when completing form RC199 and applying for the Voluntary Disclosure Program.
Professional Help with the Voluntary Disclosure Form
In addition to uncertainty regarding how the CRA will interpret your disclosure, it’s also important to be very careful when you are filling out CRA form RC199. After all, you are giving the agency information that it doesn’t currently have. If you make a mistake or do not handle the disclosure property, you could potentially open yourself up to more serious tax issues and even potential criminal issues.
It’s also critical that you provide the CRA with all missing information on the Voluntary Disclosure form. There is a requirement that all applications for the VDP be complete.
The expert team at Farber Tax Solutions has the skill and experience needed to properly apply for voluntary disclosure. Not only will working with our team give you the best chance of your application being accepted, but we can also communicate with the CRA on your behalf as needed.
Farber Tax Solutions is a tax dispute resolution firm serving clients across Canada. Our team of ex-CRA professionals, working in affiliation with tax lawyers from Farber Tax Law, provide holistic and high-quality tax advice. We have built our reputation on outstanding client service and are committed to helping you succeed in your tax matter. For more information, please contact us today.
Farber Tax Solutions can help you successfully deal with CRA problems. We utilize the experience of our tax experts to:
- 1| Offer a comprehensive solution that is focused on achieving the most favourable possible outcome for your tax issue;
- 2| Communicate with the CRA on your behalf and navigate the entire CRA dispute process; and
- 3| Offer a complete solution to your tax problems, including ex-CRA professionals and tax lawyers from Farber Tax Law.