Voluntary Disclosures Program

Plain meaning

A CRA program that may provide relief when taxpayers come forward to correct past tax omissions or errors before enforcement action begins.

Also called

Key points

• The Voluntary Disclosures Program allows taxpayers to come forward to correct inaccurate or incomplete tax reporting.
• A valid disclosure must generally be voluntary, complete, involve a penalty or potential penalty, include information at least one year overdue, and include payment where applicable.
• Relief can differ depending on whether the application is treated under the general or limited program.
• The program does not automatically eliminate tax owing or interest.
• A disclosure should be prepared carefully because incomplete or non-qualifying applications may not receive relief.

Why it comes up

VDP changes affect compliance strategy, penalties, interest relief, and taxpayer correction options.