Voluntary disclosure for series of GST returns only one of which is more than one-year overdue (p. 1176)
[T]he disclosure must generally include information that is at least one year late. The purpose of this condition is to prevent the use of the VDP by registrants to avoid late-filing penalties. However, the disclosure may include information that is less than one year late where the disclosure is to correct a previously filed return.
There is another important exception that can apply in the GST context: where returns for multiple reporting periods have not been filed, and any one of the outstanding returns is more than one year past due, the entire series of returns can be eligible for the VDP. [fn 7: 1C 00-1R4…at paragraph 49.] Accordingly, where a registrant is a monthly filer, returns for an entire year can be part of a disclosure if any one of them is one year late.
CRA practice to go back only to years for which there is supporting documentation (p. 1177)
To the extent that a disclosure involves non-compliance that amounts to fraud or a misrepresentation that is attributable to a registrant's neglect, carelessness or wilful default, the CRA could choose to include each of the registrant's historical reporting periods in the disclosure. In practice, however, the CRA will (by administrative largesse) only include reporting periods for which supporting documentation is available in the disclosure. While at first blush this may seem generous, to the extent supporting documentation is available for periods beyond the ten-year period from the period within which relief is requested, the CRA will be precluded. by the wording of section 281.1 of the ETA from providing relief in respect of the interest or penalties that accrued beyond that ten-year period.
Accordingly, registrants who have failed to comply with the ETA in cases involving neglect, carelessness, wilful default or fraud may not be entitled to relief from interest and penalties for certain periods covered by their disclosure. That said, provided a disclosure does not involve such circumstances, the CRA will limit the period covered by the disclosure to four years, which is generally the case for disclosures involving wash transactions….
Length of VDP process (p. 1177)
[T]he disclosure process will likely take anywhere from nine to twelve months to complete.
Although CRA can go back more than four years where there has been a neglectful misrepresentation etc., “in practice, however, the CRA will (by administrative largesse) only include reporting periods for which supporting documentation is available in the disclosure.”
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