Has not filed Income Tax Return for 5 years

QUESTION: I am a Canadian who mran a DBA business then later, a USA corp. I
managed to earn and save 7 figures over 5 years. I have not filed a tax
return the entire time. How much trouble am I in? I have since sold the
business and want to re-enter the tax system but fear I am going to get
whalloped. How do I go about coming clean without losing my shirt?

david ingram replies:

The answer is a voluntary disclosure to both countries.

Done properly, there will be no penalties but the tax bill will stand and
there will be interest.

However, the tax and interest will be far less than if you do not come
forward. Of course, you could try and "get away" with it.

However, just today, I have talked to a Canadian Stockbroker and a person
with his own company in the movie business. The CRA has just demanded 16
years of returns from the Stockbroker and 11 years of returns from the movie
man.

I am doing 6 years of returns for an Abbotsford lady they just caught and
have had another dozen people since September where we are doing 3, 4 or 5
years.

Glad to help you out with both countries if you decide to come clean with
voluntary disclosures. I do not know where you live but we can look after
any returns by fax, email, snail mail or courier. I forgot that 6 years of
US / Canadian personal and corporate returns are coming tomorrow from the
Niagara Falls area. This is a voluntary disclosure because the individual
has not received "Demands to File".