Voluntary Disclosure Program

What is the Voluntary Disclosure Program (VDP)?

The Voluntary Disclosures Program (VDP) gives you a second chance to correct a tax return you previously filed or to file a return that you should have filed. If you file a VDP application and it is accepted by the Canada Revenue Agency (CRA) you will have to pay the taxes owing, plus interest in part or in full. However, you would be eligible for relief from prosecution and, in some cases, from penalties that you would otherwise be required to pay.

When do taxpayers need VDP?

  • Failing file form T1135 (foreign income)
  • Omission to file correct income amount in previous tax returns
  • Claimed more expenses than the actual amount in previous tax returns
  • Omission to submit T4, T4A, T5018 slips
  • Omission to file GST/HST in previous tax returns
  • Overlook to the payment of payroll source deductions
  • Any other significant omissions in tax filings

How to proceed VDP?

We can help you apply the VDP to correct errors or omissions in your income tax filings through two streams, depending on the type of disclosure you want to make:

  • Income tax stream
  • GST/HST stream

After VDP if you can’t afford the penalty owing

CRA states that if a taxpayer could not fulfill the tax obligations and requirements due to extraordinary circumstances, there is a possible solution called taxpayer relief provisions which we can help to waive the penalties.