CRA Voluntary Disclosures Program (VDP)

What is the Voluntary Disclosures Program?

The Voluntary Disclosures Program gives taxpayers an opportunity to correct past errors or omissions in their tax obligations. It may apply to unfiled returns, omitted income, undeclared foreign assets, GST/HST errors, payroll withholding issues and other eligible matters.

A successful application does not eliminate the underlying tax. The taxpayer must still pay the tax owing and part of the applicable interest. However, the CRA may provide relief from penalties and a portion of the interest and will not refer the disclosed matters for criminal prosecution.

VDP relief is discretionary. The CRA reviews each application individually to determine whether it is eligible and what level of relief should be granted.

What Relief May Be Available?

VDP relief does not cancel the underlying tax. The taxpayer must pay the estimated tax owing or request a payment arrangement. Interest and penalty relief is also subject to statutory time limits and CRA approval.

Common Situations Where the VDP May Help

• Unfiled personal, corporate, trust or information returns
• Previously unreported business, employment, rental or investment income
• Foreign-source income that was not reported in Canada
• Undeclared foreign assets or late or omitted T1135 information returns
• GST/HST errors, understated net tax or unfiled GST/HST returns
• Payroll or other withholding-tax deficiencies
• Income from digital assets or online activities that was not previously reported
• Errors or omissions affecting multiple previous tax years or reporting periods

Does Your Disclosure Qualify?

A VDP application generally must satisfy all of the following conditions:

Matters That May Not Qualify

The VDP is not the correct procedure for every correction. Applications will generally not qualify where:

• The correction would only produce a refund or no tax or penalties are owing
• The taxpayer is only requesting relief from penalties or interest that have already been assessed
• The taxpayer wants to make or change a tax election
• An audit or investigation relating to the disclosed issue has already commenced
• The relevant years are affected by an insolvency event

How AccountIF Helps

Why Timing Matters

An unprompted application normally receives greater interest relief than a prompted application. A general education letter may not affect unprompted status, while specific communication identifying an error or omission may cause the application to be treated as prompted.

Once an audit or investigation relating to the disclosed matter has commenced, the application will generally no longer be considered voluntary. Obtaining advice early helps preserve the options that may still be available.

Frequently Asked Questions

The information on this page is general in nature and does not constitute tax or legal advice. Eligibility for the Voluntary Disclosures Program and the relief granted are determined by the Canada Revenue Agency on a case-by-case basis. VDP policies may change, and professional advice should be obtained for the taxpayer's particular circumstances. Last updated: July 2026.