We recently assisted a self-employed client who was filing from 2010-2012, and had received a demand to file the 2011 Tax Return. It turned out they also had to file GST/HST returns from 2009-2012 but had not received any demands about this yet - but we knew filing the tax returns would trigger this.
We advised our client and filed the outstanding 2011-2012 tax returns, and then we filed all the 2010 return and all the GST/HST Returns for 2009-2012 with a Voluntary Disclosure Request as they were all late filed. Immediately upon receiving the 2011/2012 tax returns CRA demanded the GST/HST returns, however we had already submitted them with Voluntary Disclosure which were acknowledged only 3 days before they issued the demand.
CRA accepted the Voluntary Disclosure for our client, and having proceeded this way has saved the client at least $10,000 in penalties. CRA could have refused to accept this, however it was worth the effort to try, and in this case it paid off in a big way for our client.
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