Who is eligible

On this page

• Who can make an application
• Situations that may be eligible
• Eligibility conditions checklist
• Pre-disclosure discussion service

Who can make an application

Most taxpayers and registrants can make an application.

• Taxpayer includes: Option 1 of 2

  • individuals
  • employers
  • corporations
  • partnerships
  • trusts

• Registrant includes: Option 2 of 2

  • GST/HST registrant/claimant
  • excise duty licensee/registrant
  • excise tax licensee
  • excise tax refund claimant
  • air travelers security charge registrant
  • designated air carrier
  • registered exporter of softwood lumber products
  • persons who are required to report or remit an amount as or on account of tax

Situations that may be eligible

These are examples of situations that may be eligible for the VDP:

• You failed to fulfil your tax obligations under the relevant legislation
• You did not file a tax return for a previous year and it is now late
• You did not report, or you under-reported, your income
• You claimed ineligible expenses
• You did not remit employee source deductions (for example, Canada pension plan or employment insurance deductions)
• You did not file certain information returns (for example, Form T1135, Foreign Income Verification Statement)
• You did not report foreign sourced income that is taxable in Canada
• You have undisclosed tax liabilities
• You failed to charge, collect, or report GST/HST
• You claimed ineligible GST/HST tax credits, refunds or rebates
• You provided incomplete information on a return

Situations not eligible for the VDP

Although special situations will be considered on a case-by-case basis, the following applications will typically not be considered under the VDP:

• Post-assessment requests for penalty and interest relief (these requests will be considered to be retroactive tax planning)
• Applications related to income tax returns with no taxes owing or with refunds expected
• Elections; there are provisions within the various acts administered by the CRA which entitle taxpayers to choose or "elect" specific treatment of certain tax transactions, for example section 216 returns under the Income Tax Act (ITA)
• Applications that depend on an agreement being made at the discretion of the Canadian Competent Authority under a provision of a tax treaty
• Applications where you are attempting to increase the amount of tax credits, other credit adjustments or rebates without any corresponding increase in tax liability in the application period
• Applications where a person is in receivership or has become bankrupt
• Applications related to an advance pricing arrangement

Eligibility conditions checklist

You must meet all 5 conditions below. Check the boxes that apply.

• checkbox 1 of 5You must submit your application voluntarily and before CRA takes any enforcement action against you or a third party related to you
• checkbox 2 of 5You must include all relevant information and documentation (includes all returns, forms, and schedules needed to correct the error or omission)
• checkbox 3 of 5Your information involves an application or potential application of a penalty
• checkbox 4 of 5Your information is at least 1 year or 1 reporting period past due
• checkbox 5 of 5You must include payment of the estimated tax owing, or request a payment arrangement (subject to CRA approval)

Pre-disclosure discussion service

If you are not sure you should apply, you can use the pre-disclosure discussion service to anonymously participate in preliminary discussions about your situation and receive:

• insight into the VDP process
• a better understanding of the risks involved in remaining non-compliant
• information about the relief available under the VDP

Pre-disclosure discussions with a CRA official are for your benefit. The discussions are informal, non-binding, and can happen before your identity is revealed. These discussions do not guarantee acceptance into the VDP and have no impact on CRA's ability to audit, penalize, or refer a case for criminal prosecution.

To speak with a CRA official, contact General Enquiries:

• Individuals (Canada and the United States): 1-800-959-8281 (opens up phone application)1-800-959-8281
• Businesses (Canada and the United States): 1-800-959-5525 (opens up phone application)1-800-959-5525

For all other telephone numbers, contact the CRA.