Our review and decision

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Our review

Once we have received your application, we will check to make sure it meets the necessary conditions of a valid application.

If we need more information

While your application is being reviewed, a CRA officer may need to contact you for additional information, documentation, and to negotiate a reply date. If we do not receive the requested information / documentation, we may deny your application as incomplete.

VDP programs and categories

Depending on the situation, different types of relief may be granted.

General program

Intended for taxpayers who come forward to correct unintentional errors.

If accepted into the General program
  • you will not be charged penalties (subject to the ten-year limitation period)
  • you will not be referred for criminal prosecution related to the information you disclose
  • you may be eligible for a reduced interest rate on the amount you owe
Limited program

Applies to taxpayers who intentionally avoided their tax obligations.

If accepted into the Limited program
  • you will not be referred for criminal prosecution related to the information you disclose
  • you will not be charged gross negligence penalties; however, you will be charged other penalties as applicable
  • no interest relief will be provided
Wash
transactions
category

Generally one where a supplier has failed to charge and collect GST/HST from a registrant who is entitled to a full input tax credit.

If accepted into the Wash transactions category
  • you will not be referred for criminal prosecution related to the information disclosed
  • you may be eligible for full penalty and interest relief on the transactions disclosed

Factors considered for determining the appropriate type of relief

The following factors may be considered:

  • the dollar amounts involved
  • the number of years of non-compliance
  • the sophistication of the taxpayer or registrant
  • how quickly the taxpayer or registrant acted to correct their non-compliance upon its discovery
  • if the disclosure is made after a CRA statement about its intended specific focus of compliance (for example, the launch of a compliance project or campaign) or following broad-based CRA correspondence (for example, a letter issued to taxpayers working in a particular sector about a compliance issue)
  • the efforts were made to avoid detection through the use of offshore vehicles or other means

Our decision

If your application is accepted

You will receive a letter with the following information:

  • which program or category your application was placed in (General, Limited, or Wash transactions)
  • which taxation year(s) or reporting period(s) were eligible for relief

If your application is denied

You will receive a letter giving you the reason for the denial.

If your application was denied as incomplete, due to information not being sent by the required due date, the CRA will not consider a request for a second administrative review and will deny any later application for the same matter.

For details: paragraphs 59-60 of Information Circular IC00-1R6 or paragraphs 66-68 of the GST/HST Memorandum 16-5

Disagreeing with our decision

If you disagree with the CRA's decision or believe the Minister of National Revenue has not been fair or reasonable, you still have options.

You can request a second administrative review or apply to the Federal Court (of Canada) for a review of the Minister’s decision (Judicial Review). Generally, taxpayers should request a second administrative review from the CRA before applying for a Judicial Review with the Federal Court.

Asking for a second administrative review

To request a second review, send your written request to the Assistant Director of the Shawinigan National Verification and Collections Centre.

Asking for a judicial review

To request a judicial review, the taxpayer must send a completed Form 301, Notice of Application, with the appropriate filing fee, to the registrar of the Federal Court.

For details: paragraphs 61-64 of Information Circular IC00-1R6 or paragraphs 69-72 of the GST/HST Memorandum 16-5

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