Principal Issues: CRA's position on voluntary disclosures - post Bozzer decision.
Position: General comments provided by VDP section.
Reasons: See below.
STEP CRA Roundtable - June 2014
Question 13. Voluntary Disclosures
We understand that voluntary disclosures that cover more than ten taxation years have been held in "limbo" as a result of the findings in Bozzer v. The Queen [2011 FCA 186]. We are told that the voluntary disclosures officers are awaiting direction from head office in Ottawa to determine how to deal with voluntary disclosures that exceed ten years. Can you please advise when CRA will make a determination on how to deal with these situations?
CRA Response
Voluntary disclosures that cover more than ten taxation years are currently being processed by the Voluntary Disclosure Programs (VDP) offices in accordance with the Federal Court of Appeals decision in Bozzer v. Canada (2011 FCA 186); the limitation period in subsection 220(3.1) of the Income Tax Act provides the Minister with the discretion to waive or cancel interest that accrued within the last ten calendar years, from the year the request was made, notwithstanding the taxation year from which the debt arose.
For more information on the VDP please consult the CRA's web page at www.cra-arc.gc.ca.
Vyjayanthi Srikanth (for ABSB)
2014-053057