A second chance to correct your tax affairs

Did you know?

The Canada Revenue Agency (CRA) offers taxpayers a second chance to correct earlier mistakes and put their tax affairs in order. Through the Voluntary Disclosures Program (VDP) more Canadians than ever are coming forward and declaring previously unreported income or correcting inaccurate or incomplete information. The number of disclosures has steadily increased over the past five years.

Important Facts

By filing a valid voluntary disclosure with the CRA, you pay only the taxes you owe and interest, and may avoid penalties and potential prosecution related to the information accepted under the program. The disclosure must be voluntary, meaning you have to file a valid disclosure before you become aware that the CRA is taking action against you. If your tax affairs need to be corrected, come forward now and take this opportunity to make things right.

A valid disclosure must meet all four of the following conditions:

it must be voluntary;
a penalty applies to it;
the mistake or omission must be at least one year overdue; and
it must be complete and include all appropriate information.

Who can use the VDP?

Anyone can use the VDP including, individuals, businesses, employers, payers, trusts and estates, whether a resident or non-resident of Canada.

What kind of information can I disclose?

unfiled income tax returns, GST/HST returns;
unfiled information returns (e.g. T4, T4A-NR, NR4, T1135, T106);
unreported income earned inside or outside Canada while a resident of Canada;
unremitted withholding taxes paid to residents or non-residents of Canada (e.g. Regulation 105, Part XIII, GST/HST); and errors, mistakes or omissions not included in your previous dealings with the CRA.

Information not accepted under the VDP

bankruptcy returns;
income tax returns with no taxes owing or with refunds expected;
elections;
advance pricing arrangements;
rollover provisions; and
taxpayer relief requests.

How do I make a voluntary disclosure?

It's a very easy process and you can do it yourself. The first step is to complete and sign form RC199, Voluntary Disclosures Program (VDP) -- Taxpayer agreement, or send a letter with the same information as the RC199 to the tax centre responsible for your submission. However, if an authorized representative is submitting the documentation on your behalf, they must also include Form T1013, Authorizing or Cancelling a Representative, or Form RC59, Business Consent confirming your consent.