Voluntary Compliance Can Mitigate Risk
CRA wants to remind you that fessing up can be profitable.
Under its Voluntary Compliance Program, you can avoid penalties by adjusting your tax returns for under-reported income or overstated deductions and credits. If you do that before CRA gets to you, you might even be spared house arrest. But you’ll need to make arrangements to pay taxes and interest and make sure your disclosure is indeed valid.
Adjust your tax return by completing Form T1-ADJ, and follow these instructions:
· If you think you missed claiming something on a prior filed return, call your tax practitioner to make an adjustment or do it yourself using form T1-ADJ, available on the CRA’s website.
· You can also adjust electronically on the CRA website. Log on to “My Account” and choose the “Change my return” option.
· Have supporting documentation available in case of audit.
· Never file a second tax return.
For more information, go to www.cra.gc.ca/voluntarydisclosures.