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Question

Mr. Hogan

I’m in quite a dilemma and I think I’ll need your help. I stumbled across your articles on philhogan.com which I found very helpful.

I’m not proud of this, but I haven’t filed tax returns for 6 years. In 2009 I started a consulting business that took off quickly and maintained profitability for 3 years. I closed down the practice in 2011 and since have been working for a small startup in Victoria.

In the 3 years I ran the consulting practice I made around $100,000 per year. In the years following the practice (with the startup) I made (and currently) around $60,000 working 3 days a week.

The tax department has yet to ask me for tax returns, which I gather from your blog is a good thing because I may be eligible for their voluntary disclosure program.

What is the best way to get caught up on all these late tax returns before the tax department finds out that I haven’t filed since 2008.

Please let me know if a phone call would be better.

Answer

Hi XXXXX

Thanks for the email.

Yes, you are correct, it’s a very good thing that CRA has yet to ask for tax returns. Assuming you meet the other criteria of voluntary disclosure you should be eligible for the program.

You’ll need to move fast however to submit an application to ensure you contact them before they ask for returns.

Assuming you qualify, I would suggest filing a quick no-name voluntary disclosure with CRA which will afford you a 90 day window to gather information and fully disclose all adjustments and disclosures.

Once that is submitted we would complete the delinquent returns and submit everything before the 90 day limit expires.

I’ll give you a call tomorrow to discuss your options. I’m confident we can get you caught up and square with CRA as soon as possible.

Regards

Phil

Phil Hogan

Phil Hogan is a Canadian and US CPA working with clients throughout Canada and the US. Phil advises on cross border tax and financial planning matters. Phil can be reached at phil@hutcheson.ca or via telephone at 250-661-9417. You can also read more about Phil at Hutcheson.ca/phil.
Phil Hogan

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Philip Hogan

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The information contained in this article is for general use only and should not be viewed as professional advice. Accounting and tax rules and regulations regularly change and individuals should contact a competent professional to obtain accounting and tax advice based on their specific situation.

Phil Hogan

Phil Hogan is a Canadian and US CPA working with clients throughout Canada and the US. Phil advises on cross border tax and financial planning matters. Phil can be reached at phil@hutcheson.ca or via telephone at 250-661-9417. You can also read more about Phil at Hutcheson.ca/phil.
Phil Hogan

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