The VDP is a Canada Revenue Agency (CRA) program that allows taxpayers to voluntarily correct past tax errors or omissions, such as unreported income, missed filings, or incorrect deductions, before the CRA contacts them. If accepted, you can receive relief from penalties, partial interest relief, and protection from prosecution.

Individuals, corporations, trusts, partnerships, and even estates can apply. The program covers most taxes administered by the CRA, including personal and corporate income tax.

Common disclosures include unreported income (domestic or foreign), missed or late tax returns, incorrect claims for deductions or credits, and unreported offshore assets or accounts.

Usually not. The disclosure must be voluntary. Once the CRA starts an audit, investigation, or even sends a compliance letter about the same issue, you may no longer qualify. However, under the updated 2025 rules, limited “prompted” applications can still receive partial relief if no audit has started yet.

If accepted:

• Penalties may be waived (up to 100%)

• Interest may be reduced (25%–75% relief depending on timing)

• Prosecution will not occur for the disclosed issues
  Taxes themselves and any remaining interest must still be paid.

Relief applies to tax years ending within the past 10 years from the date of the application. However, older years can still be included for completeness and peace of mind.

You can submit your application with a payment arrangement request. The CRA may approve a schedule, but you must demonstrate intent and ability to pay.

You’ll receive a written notice from the CRA explaining why. You can request a second administrative review, and if still unsatisfied, you can apply for judicial review at the Federal Court.

Generally, no. The CRA expects taxpayers to remain compliant after their first disclosure. A second application may only be accepted if the new issue is unrelated or clearly beyond your control.

Yes. Information provided under the VDP is protected under section 241 of the Income Tax Act, meaning CRA employees cannot disclose it without lawful authority.

• Unprompted: Made before the CRA contacts you receives full penalty and maximum interest relief.

• Prompted: Made after limited CRA contact (but before audit) eligible for partial relief only.

On average, 3–6 months from submission to decision, depending on the complexity of your case and CRA’s current workload.

You can, but it’s risky. A weak or incomplete disclosure can lead to rejection or reduced relief. Working with a CPA ensures your submission meets CRA standards, includes all required documentation, and maximizes the relief available.

You can still apply. In fact, the VDP is often used for offshore disclosures unreported foreign income, bank accounts, or property. CRA typically requires up to 10 years of records for foreign-related cases.

The CRA reserves the right to verify or audit the information you provide, even after accepting your disclosure. However, the key benefit is that prosecution and penalties will not apply for the disclosed items.

You’ll receive a formal acceptance letter, revised assessments for each corrected year, and a statement of any tax and interest owing. Once those balances are paid, the matter is closed.

You can start with an anonymous pre-disclosure discussion through a CPA. This allows you to outline your situation without revealing your identity until you’re ready to proceed.

There’s no fixed deadline, but timing matters. Once the CRA contacts you, you lose eligibility for full relief. Acting early ensures the “voluntary” condition is met.

No, each case is assessed individually. Acceptance depends on meeting CRA’s five criteria: voluntary, complete, penalty/interest exposure, timeliness, and payment.

We manage every step, from eligibility review and file reconstruction to RC199 submission and CRA communication. You get a clear plan, full confidentiality, and representation until your disclosure is finalized.

If you owned foreign property worth more than $100,000 CAD at any time in a year — including foreign stocks in non-registered accounts, crypto held on offshore exchanges, rental property outside Canada, or even cash in a foreign bank — you were required to file Form T1135 with your tax return.

Failing to file T1135 can trigger penalties of up to $2,500 per year, or much higher if the CRA believes the omission was deliberate.

Through the Voluntary Disclosures Program, you can correct missing or inaccurate T1135 filings before CRA contacts you. If accepted, the CRA typically waives penalties and prosecution, and may grant partial interest relief, while ensuring your offshore reporting history is brought up to date.

Yes, unreported crypto activity qualifies for the Voluntary Disclosures Program if it involves taxable income you failed to report.

Whether you traded on foreign exchanges, mined tokens, or earned staking rewards, the CRA treats most crypto transactions as taxable events.

If you’ve never reported crypto gains or losses, or if your exchange closed and you’ve lost records, the VDP allows you to come clean before the CRA identifies your account through data-sharing agreements or exchange reporting.
A complete disclosure can remove penalties, reduce interest, and eliminate prosecution risk — but you’ll still pay the underlying tax and adjusted interest.

Our team helps reconstruct wallet history, transaction summaries, and fair-market-value calculations to support an accurate, defensible filing.

*Bookkeeping of Crypto to do the VDP is a separate charge.