Christen v. Canada (Revenue Agency), 2021 FC 1440, aff’d 2023 CAF 101, is of interest on a number of levels, perhaps especially for lawyers who practice administrative law. The case also yields some interesting insight into the CRA’s approach to…
A Voluntary Disclosure Gone Wrong
The following article was published by the Canadian Tax Foundation. John Loukidelis “A Voluntary Disclosure Gone Wrong” (2021) 21:3 Tax for the Owner-Manager 10. In 4053893 Canada Inc. v. Canada (National Revenue) (2021 FC 218), the court dismissed an application…
Voluntary disclosure gone awry
In Grewal v Canada (National Revenue), 2020 FC 356, the taxpayer, as part of a voluntary disclosure (VD), reported the existence of certain loans but (only implicitly?) took the position that they were not relevant to his income under the…
VD for 2019
An accounting colleague asked recently how the “one year overdue rule” applies for a voluntary disclosure for 2019. The rule is found in paragraph 37 of Information Circular IC00-1R6 (“Voluntary Disclosures Program”), which reads as follows: The VDP application must…
VDs and enforcement against a related person
The taxpayer, in a previous application (2019 FC 51), succeeded in having the Court order the CRA to reconsider its decision because it did not adequately address how the demand for returns from the individual would have uncovered the corporation’s…
Voluntary disclosure for many years gone wrong
In Gauthier, 2017 FC 1173, the taxpayer made a voluntary disclosure for 2005-2014 for income earned from funds he had transferred offshore in 1978. The CRA accepted the VD, waived penalties and cancelled interest for those years but then reassessed…
VDP Report
The following points summarize the Offshore Compliance Advisory Committee report on the CRA voluntary disclosure program (VDP): Provide less generous relief in certain cases eg where the taxpayer’s default is wilful or deliberate. The conditions for participating in the VDP…
VD fees
Are VD fees (voluntary disclosure fees) deductible? The CRA takes the position that, in general, professional fees incurred in respect of a VD are not deductible unless they were incurred in respect of a business. Per 2016-0625731C6, when the CRA…
Panama
From a CRA press release issued two days ago on the Panama papers: The Canada Revenue Agency (CRA) is committed to combating the abusive use of offshore jurisdictions and protecting the integrity of the Canadian tax system. The CRA continues…
VD Data
The CRA personnel dealing with voluntary disclosures (VDs) were quite busy in fiscal 2015. Michael Friedman and Andrew Stirling, “Voluntary Disclosures Continue To Increase” Canadian Tax Highlights 24:3 (March 2016) discusses some key points found in the CRA’s report to…