The CRA has put forward for consultation new guidelines to restrict the use of its VDP following its review of the program.
As a result of these proposed changes, large Canadian companies will no longer be allowed to qualify for the VDP on income tax matters, although some relief appears to remain for indirect (GST/HST) matters. In addition, the CRA has proposed to provide only reduced relief in certain circumstances under a new “Limited Program”. Further, to qualify for the VDP program, taxpayers will have to pay their estimated taxes on filing an application. The CRA is accepting public comments on its proposed changes, which it outlined in a new draft Information Circular and a new draft GST/HST Memorandum, until August 8, 2017. The CRA said it will officially announce changes to the VDP in the fall of 2017, with effect for 2018.
Download this edition of the TaxNewsFlash to learn more.