Why You Should Voluntarily Disclose Offshore Investments

In recent years, the popularity of the Canada Revenue Agency's voluntary disclosures program – which enables taxpayers to correct any mistakes or omissions in their previous tax filings – has ballooned.

When taxpayers come forward, their tax problems get solved, the CRA reduces the accrued interest and, most important, waives all penalties and potential criminal prosecution for tax evasion. For the CRA, it is found money – well into the hundreds of millions of dollars annually – that might not otherwise make its way into the government's coffers. It's a win-win.

It has been estimated that Canadians have more than $100-billion in offshore bank accounts. If you have unreported offshore investments and are considering making a voluntary disclosure, here are six reasons to do it now: