April 21, 2017
by Fraser Simpson


By Fraser Simpson

John contacted us recently and booked a consultation and this was his tax tale. He had not filed his tax returns for ten years and was depositing the money he was earning as a self-employed contractor framing houses, in his girlfriend’s bank account. Recently his girlfriend advised that she had other plans and that he should take his money out of her account. John was concerned because he felt that if he opened a bank account in his name Revenue Canada would garnish his account leaving him destitute.

Going from underground to aboveground is tricky business. Many considerations including dealing with the CRA and how to properly file back taxes. I told John not to worry and that I had filed many Voluntary Disclosures with the CRA successfully and without penalty.

First, I immediately contacted Revenue Canada and registered as a representative for John. Then I filed the ten years of taxes and made a payment plan which was approved on an anonymous basis. Once approved I presented the plan to John who was relieved given that penalties would not be applied. I then e-filed the returns and John was home free.

By the numbers; John owed approximately $10,000 per year, totalling a $100,000 liability. If a penalty was applied it would have doubled the liability. Therefore, by filing a voluntary disclosure through me as a registered CRA rep, John saved $100,000.

If you are in a similar situation call us to discuss a voluntary disclosure and you too can save thousands. Do not try an application yourself, one wrong move and you will not qualify for a penalty waiver. I have been doing this for over thirty years and have acquired the specialized knowledge concerning voluntary disclosures and the criterion for acceptance.

Interested in finding out more? Fill out our contact form or email David Harris at or call 888-359-1490.

Mr. Simpson has been active in income tax consulting, residential and commercial real estate development since 1985. Prior to founding the Tax Mechanic, he held several senior management positions, including Director of Land development for a real estate investment company (John DiPoce Management) and Controller of Communicorp Multi Media Inc., a TSX listed company. Mr. Simpson obtained his Bachelor of Arts degree from York University, Toronto, and qualified as a Chartered Accountant in 1993. He has also completed the Canadian Securities and Partners, Directors and Senior Officers courses.

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