Important Deadline for Correcting Errors or Omissions on Tax Returns

Did you know that the CRA’s Voluntary Disclosures Program (VDP) is proposed to change soon, restricting the ability to correct errors and omissions within a 10-year period?

Should the changes come to fruition, not only will taxpayers lose the opportunity for full relief on interest and penalties owing, but a prepayment of taxes owing may also be required.

What can be done now to avoid the serious cost implications for clients who have made errors or omissions on previous tax returns?

Be sure to advise clients in this situation to request an adjustment to tax years 2007 to 2016 before December 31, 2017, especially if they have missed reporting capital losses or principal residence dispositions or failed to file lucrative deductions for the following: moving expenses, child care expenses, business investment losses, carrying charges or tax shelter deductions.

Taxpayers and their advisors may wish to use this checklist to discuss common misses in filing prior returns:

To help Canadians with their tax affairs, consider registering for the DFA-Tax Services Specialist certification program in the fall. For more information or a personal consultation from Knowledge Bureau, call 1-866-953-4769.

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