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CRA announcement
The CRA announced revisions the the voluntary disclosure program effective October 1, 2025.
Three relief programs
- Unprompted applications are normally eligible for general relief and will receive 75% relief of the applicable interest and 100% relief of the applicable penalties.
- Prompted applications are normally eligible for partial relief and will receive 25% relief of the applicable interest and up to 100% relief of the applicable penalties.
- Wash transactions within a VDP application will receive 100% relief of the applicable penalties and interest where the transaction would be eligible for a reduction of penalty and interest under the policy set out in GST/HST Memorandum 16-3-1.
Taxpayers are required to provide supporting documentation to correct the non-compliance for the most recent 4 years.
Please refer to GST/HST Memorandum 16-5-1, Voluntary Disclosures Program for more information.
Current sales tax issues
Currently, there are numerous real property issues related to the GST/HST. Below are some of those issues
- Many individuals and businesses have received notices from the CRA requesting information about the disposal or sale of residential properties. Please do not ignore these requests. If ignored, you may receive an assessment for tax not remitted. Contact me or your accountant for assistance with a reply to the CRA.
- There is still a lot of confusion when dealing with short-term rental properties when there is a change-in-use. For example, when an individual stops listing a cottage on Airbnb and starts to use the cottage for personal use.
- Also, substantial home renovations can be a very complex area of non-compliance. If you are renovating a used home with the intent to sell or rent, there are GST/HST consequences.
Connect with Diane at Simply Sales Tax Today
Contact Diane at diane@simplysalestax.com
Ontario, Canada
