Over the past 15 years, we have seen big changes in our economy. The number of Canadian-controlled private corporations (CCPCs) has increased by 50 per cent and makes up a much bigger part of our economy than they did in the early 2000s. For professionals, the number of corporations has tripled over that same period. The average income in Canada is estimated to be about $49,000 this year. An incorporated professional earning $300,000 with a spouse and two adult children can save about $48,000 in taxes by using just one of these loopholes. What that means is an incorporated professional could be taxed at a lower rate than a salaried nurse practitioner or police officer making much less a year. At the heart of these proposals is the Liberals promise to the middle class, and a belief that every Canadian should feel confident that they have the same opportunity to succeed and benefit from a growing economy. That confidence starts with knowing everyone is treated fairly.
Circumstances Under Which VDP Relief May be Granted Will Change;
Currently relief from penalty and prosecution, as provided for under the VDP, may be considered if a taxpayer:
failed to fulfill their obligations under the applicable act,
failed to report any taxable income they received,
claimed ineligible expenses on a tax return,
failed to remit source deductions of their employees,
failed to report an amount of GST/HST, (which may include undisclosed liabilities or improperly claimed refunds or rebates,
unpaid tax or net tax from a previous reporting period),
failed to file information returns, and
failed to report foreign sourced income that is taxable in Canada.
This list will certainly shrink come January 2018
If you are considering filing an application under the Voluntary Disclosure Program, do it now BEFORE the rules change.