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). If you have ever made a mistake on your taxes, or left out details about income you reported on your tax return the CRA is offering you a second chance to make things right.

Important facts

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

A valid disclosure has to meet all four of the following conditions:

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

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

How do you make a voluntary disclosure?

You can also now submit Form RC199 electronically through the CRA’s secure portals: My Account, My Business Account and Represent a Client. Sending such material through the Submit Documents Online service is secure and reliable, and assists in the ease and efficiency with which documents are processed.

It’s a very easy process and you can do it yourself. The first step is to fill out and sign Form RC199, Voluntary Disclosures Program (VDP) – Taxpayer Agreement, or write a letter with the same information on the form, and send it to the tax centre responsible for your disclosure. However, if an authorized representative is making the disclosure for you, they must also include Form T1013, Authorizing or Cancelling a Representative, or Form RC59, Business Consent, confirming your consent or have valid consent on file for you.