Voluntary Disclosure Program
The CRA’s Voluntary Disclosures Program (VDP) lets taxpayers fix past errors or omissions – such as unreported income, missed filings, or inaccurate returns – before the CRA starts compliance action. A valid disclosure can cancel penalties, reduce interest, and prevent prosecution. Taxes owing must still be paid in full.
Who Can Apply
Individuals, corporations, trusts, and other taxpayers can apply for most CRA-administered taxes, including income tax, GST/HST, payroll, excise duties, and other regimes like the Underused Housing Tax (UHT).
Relief Available
The program now has two categories:
- Unprompted applications: Made before the CRA contacts you about the issue. Result: all penalties cancelled, 75% interest relief, and no prosecution.
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Prompted applications: Generally made after CRA has taken some steps (e.g. received third-party data) but before a formal audit/investigation starts. Result: up to 100% of all penalties cancelled, 25% interest relief, and no prosecution.
Relief only applies to the past 10 years.
Conditions
Generally, to qualify, a disclosure must be voluntary, complete, past due, involve penalties or interest, and include payment or a payment arrangement.