The Canada Revenue Agency's Voluntary Disclosure Program
(the "Program") encourages taxpayers to voluntarily
disclose unreported income. The Program promises that a taxpayer
who voluntarily discloses previously unreported income will not be
prosecuted for tax evasion and will not have any civil penalties
imposed if the Agency's four Program conditions are met. The
Agency's four Program conditions are: (1) the disclosure must
be voluntary; (2) the disclosure must be complete; (3) the
disclosure must involve the application, or potential application,
of a penalty; and (4) the disclosure must include information that
is at least one year past due.
In many cases, the Minister will not exercise his discretion to
accept a taxpayer's disclosure under the Program citing any
type of enforcement action. The Agency appears to have defined
"enforcement action" as any real or contemplated, direct
or indirect, action that could have revealed the information that
the taxpayer
