May

More VDP Stats

Posted By: David M. Piccolo on May 25, 2010 at 1:40:05 in All , News

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More VDP Stats

On May 5, 2010, CRA released statistics on the number of voluntary disclosures they’ve received for the past few years. The following is a summary of their figures (all are approximate):

• 2005-06 Fiscal Year – 7,300
• 2006-07 Fiscal Year – 8,240
• 2007-08 Fiscal Year – 8,400
• 2008-09 Fiscal Year – 11,400

CRA’s news release does not indicate the cause for the dramatic increase from the 2007-08 fiscal year to the 2008-09 fiscal year, but I can speculate on a couple of reasons. The poor economy could have caused the increase for two reasons. First, individuals may have had to tap into their savings due to the downturn, and if a portion of the savings was off-shore, a voluntary disclosure may be used as part of the repatriation process. Second, individuals may have strategically filed voluntary disclosures as part of a bankruptcy in an attempt to avoid the new bankruptcy provisions that apply to individuals with large tax debts (where their tax debts would otherwise exceed $200,000).

Another possible cause for the spike in voluntary disclosures is the increased visibility of the program due to the highly publicized case regarding Swiss bank UBS and the IRS.

Originally posted on www.piccololaw.ca, used with permission.

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