When we identify an unclaimed credit, benefit, or overpayment, we will inform the affected client so that he or she can make future claims. We will encourage employees to act in the interests of clients in identifying these credits, benefits, and overpayments. Clients tell us they want to be able to come forward and correct deficiencies in their past tax and customs affairs without penalty. Our voluntary disclosures program lets them do that. However, our program is not well known, and of those clients who know about it, some see it as unpredictable and unfair.
Clients making voluntary disclosures only have to pay what they owe plus interest.
We do not prosecute clients, or impose any other civil penalties, as long as the client discloses the information before we make a formal request for them to file a return, or before we begin an audit, investigation, collection, or other enforcement action. Reference to the current voluntary disclosure process is made in numerous departmental publications to encourage clients to come forward in order to fulfil their obligations. The existing policy and processing guidelines are continuously being reviewed and revised as needed. We will transfer functional authority for voluntary disclosures to the Appeals Branch as a first step to improving the public perception of the accessibility of our voluntary disclosures program. We will start consultations with tax, customs, and trade communities on the voluntary disclosures policy to clarify the rules and to explore ways that it can be further encouraged and promoted.