Posts

Brampton Tax Accountants

Tax Accountant

Tax Accountant

Cheema & Assocaite – Your Local Brampton Tax Accountants 

Cheema & Associate CPA Professional Corporation is an accounting firm located in Brampton, Ontario at the main intersection of Kennedy Rd S and Clarence St. Our office address is 143 Clarence st. Suite 5, Brampton ON L6W 1T2.

We provide income tax services to all types of clients from Brampton. We have been serving the Brampton market for over three years. Tax has evolved over the years with strict regulations imposed by the Canada Revenue Agency. We can professionally prepare your tax returns while maximizing your refund by designing and catering unique tax planning strategies. Our professionals have experience in handling wide rage of unique tax returns. Contact us for your 2014 personal income tax returns.

Our Brampton tax accountants are dedicated in assisting you in all your income tax needs.

Personal Income Tax
Personal tax has evolved over the years with strict regulations imposed by the Canada Revenue Agency. Your local Brampton tax accountants can professionally prepare your tax return while maximizing your refund by designing and catering unique tax planning strategies. Our professionals have experience in handling wide rage of unique tax returns.

Corporate Tax
Our uniquely designed tax programs can assist you with complying with the complicated provisions of the Income Tax Act (ITA) while minimizing tax liabilities. We can structure your business to maximize profitability and minimize tax risks.Contact us for your 2014 corporate tax returns.

Audit & Appeal
Our team is dedicated to assist you in all your CRA appeals. We make sure that your company’s tax audit is handled smoothly and efficiently. We can assist you with the tax audit process – starting from the information gathering stage to negotiation with the tax authorities. We can also help in negotiating payments and even apply for interest or penalty relief.

Voluntary Disclosures – Should I Apply?

 

Should I use the VDP program offered by the CRA? Is this program right for me?

Should I use the VDP program offered by the CRA? Is this program right for me?

What is Voluntary Disclosures Program (VDP)?

The VDP is a Canada Revenue Agency (CRA) administered program which allows taxpayers to disclose or amend historical tax returns due to inaccuracy or unreported tax information. Under the program the CRA will not charge penalties or prosecute the taxpayer. The program also promises to grant partial interest relief if you are accepted under the program.

A disclosure must meet the following four conditions in order to qualify as a valid disclosure:

  1. Voluntary – The disclosure has to be voluntary. You cannot apply for this program once the CRA starts to audit your books and records. You will not qualify for this program once the CRA contacts you.
  2. Complete – The taxpayer must provide complete and accurate information for the period you are applying for.
  3. Penalty – There has to be situation where a penalty would apply to the taxpayer. This usually constitutes that there is taxes owing, otherwise the use of this program would be useless.
  4. One year past due – The disclosure has to be one year past due.

Should I Apply?

After briefly reviewing the details of the VDP program everything looks great on the surface. It had finally seemed like the CRA had implemented a program which would allow Canadians to correct past period errors without hefty penalties and interest.

Before we can fully start utilizing the program there are ambiguities that the taxpayer must understand. One of the most common misconceptions is that the CRA will not charge penalties or interest if you make a submission under this program.

In the VDP publication the CRA states that if the CRA accepts a disclosure as having met the conditions set out in this policy, it will be considered a valid disclosure and the taxpayer will not be charged penalties or prosecuted with respect to the disclosure. However, the CRA  contradicts itself and states that the Minister does not have to grant relief under the VDP provisions. Each request will be reviewed and decided on its own merit. If relief is denied or partly granted, the CRA will provide the taxpayer with an explanation of the reasons and factors for the decision.

When determining if interest and penalties should be charged, the CRA will assess on a case by case basis. This decision is most likely made by the CRA agent assessing the case.

Read more