Voluntary Disclosure Program

The Voluntary Disclosures Program (“VDP”) allows taxpayers, including individuals, employers, corporations, partnerships, and trusts, to voluntarily correct past non-compliance related to income tax, source deductions, and various excise duties and taxes. This program encourages taxpayers to disclose any inaccuracies, incomplete information, or previously unreported information. There are  two tracks for VDP applications: the General Program, which offers penalty relief and partial interest relief for accepted applications, and the Limited Program, which provides reduced relief for cases involving intentional non-compliance.

Applications must meet specific conditions to qualify for the VDP: they must be voluntary, complete, involve potential penalties, include information at least one year past due, and include payment of the estimated tax owing. The VDP aims to promote compliance and fairness, ensuring that compliant taxpayers do not find themselves worse off than those who have corrected their affairs through the program. Relief is not guaranteed and is granted at the Minister of National Revenue’s discretion, taking into account the principles of procedural fairness.