· VDA was pursued, after legal advice from Farris LLP, as the Club had not filed T1044 Information forms or Corp T2’s with the CRA since their requirement, as an NPO, in 1993.
· 10 years of T1044 and Corp. T2 filings (2010-2019) were prepared by a CPA. No tax was determined to be payable by the CPA. The City of Surrey has agreed to reimburse the Club $7,500 for the CPA cost should the 3 agreements be approved.
· The filings were submitted on our behalf to CRA in May of 2020 by the Club’s tax lawyer. CRA advised our tax lawyer in September 2020 confirming filing receipt and that a review of the VDA would begin. Farris LLP are providing their legal advice and representation pro-bono to the Club.
· The Club could be subject to a potential annual T1044 filing penalty of $2,500, plus interest which could amount to some $32,000 for the 10 year period disclosed. If CRA does go back to 1993, the potential liability could be as high as $65,000 plus interest. There may be potential T2 late filing penalties as well.
· Final liability, if any, and the timing to complete the VDA review, is at the discretion of the CRA.
F. Koch, Treasurer