Voluntary Disclosure Program.

With your voluntary disclosure application, provide proof of your business activities including bank statements, invoices, receipts, contracts, business papers, and any credit card transactions that show you’ve paid for expenses, and proof that those purchases and expenses are reasonable and eligible to claim as an ITC. Usually the CRA is willing to assign a retroactive GST/HST registration number to the date of the first customer invoice that was created. Penalties and interest can only be forgiven for a ten calendar year period, and the latest you can send a GST/HST return to claim your ITC is no later than four years after the due date for the return in which you could have first claimed the ITC. ITCs older than four years old are not available to be paid back upon GST/HST registration, although they can be used as a credit to offset any GST/HST payable in order to lower the ultimate amount you owe for any prior reporting period.

With the Voluntary Disclosure Program, GST/HST stream applications are processed under three tracks, and the determination of which category an application will be processed under will be made by the VDP on a case-by-case basis.

✓ Wash Transactions Program

Wash transactions are those where a supplier has not charged and collected GST/HST from a business that is entitled to a full input tax credit. This program provides full relief to registrants who want to correct unintentional errors.

✓ General Program

This program provides relief to business owners who want to correct unintentional errors. If your application is accepted, you will not be charged penalties and you may be granted partial interest relief of 50% of the applicable interest rate that applies for the years disclosed.

✓ Limited Program

This program limits the level of relief to business owners who intentionally avoided their tax obligations. No interest relief is provided. You will avoid criminal prosecution, with respect to the information being disclosed, and no gross negligence penalty will be applied even where you would otherwise be liable. The following factors are considered when determining if an application is accepted into the Limited Program:

•GST/HST was charged or collected but not remitted.

•efforts were made to avoid detection, including “under-the-table” cash deals.

•disclosure is made after the CRA contacted your business.

•there was deliberate or careless conduct which falls below the appropriate standard of care.

Once you cross that $30,000 threshold in any 12-month period (not a calendar year), you must get a GST/HST number and start charging your customers or clients. If you’ve passed that milestone and didn’t register when you should have, you can still do it now. Waterdown Bookkeeping and Accounting can help you get on track with a GST/HST registration and filing returns so you can pay the least amount of interest, penalties and net tax.

For More information contact us now!