Voluntary Disclosures Program

The Voluntary Disclosures Program (VDP) allows taxpayers to come forward and correct inaccurate or incomplete information or disclose material they did not report during previous dealings with the CRA, without penalty or prosecution.

The VDP even accepts information that is less than one year overdue, except when disclosures are being made to avoid late filing charges.

Summary

Relief from penalty and prosecution, as provided for under the VDP, may be considered if a taxpayer:

• failed to fulfill their obligations under the applicable act;
• failed to report any taxable income they received;
• claimed ineligible expenses on a tax return;
• failed to remit source deductions of their employees;
• failed to report an amount of GST/HST, (which may include undisclosed liabilities or improperly claimed refunds or rebates, unpaid tax or net tax from a previous reporting period);
• failed to file information returns; and
• failed to report foreign sourced income that is taxable in Canada.

Penalty Relief

If the CRA accepts a disclosure as having met the conditions set out in its policy, it will be considered a valid disclosure and the taxpayer will not be charged penalties or prosecuted with respect to the disclosure.

Interest Relief

In addition to penalty relief, if a disclosure is accepted as valid by the CRA, the Minister may grant partial relief in the application of interest against a taxpayer in respect of assessments for years or reporting periods preceding the three most recent years of returns required to be filed.

New Brunswick Contact(s):
See National Contact.

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National Contact(s):
Canada Revenue Agency
Toll-free (information): 1-800-959-5525 (Business Enquiries and Registrations)
Toll-free (publications): 1-800-959-2221 (Forms and Publications)
Web site: http://www.cra.gc.ca/menu-e.html