Last week the Minister of national revenue announced that they received information from the Government of France that approximately 1000 Canadians hold accounts with HSBC Bank in France.
The CRA has also announced that they began a series of checks. Are now controlled the largest accounts, and more will follow. Will examine all accounts linked to Canadian taxpayers.
It is reported that only last year the CRA discovered over 1 billion dollars in unpaid federal taxes hidden in offshore accounts and assets. In the same year the CRA reported that they recovered $ 138 million in these types of unpaid taxes through the voluntary disclosure program of the CRA.
This should be a serious warning sign that if you have unreported income offshore activity or that it’s time to come clean with the Government. Failing to do so is illegal and can land in big trouble.
In the end, the CRA will discover the income. The CRA has international tax treaties around the world and this story recently about the situation with France is the first example, because it cannot afford to wait.
Not come clean may result in an investigation, audit of returns, interest, penalties, and exorbitant cost revaluation. Then after the CRA determines what you need to take aggressive action, against you.
There is a solution if you have this problem, which is the voluntary disclosure program. The reason for which the CRA has recovered more than $ 138 million in unpaid taxes as a result of these kinds of cases because of the voluntary disclosure program. An application under the voluntary disclosure program offers you, the taxpayer, an opportunity to come clean on undeclared income and investments, avoiding penalties and prosecution.
The voluntary disclosure process is a formal process that you should hire an accountant to manage. There are several measures, procedures and policies which must be placed in order to be correctly submitted, processed and approved or rejected by CRA.