CRA Voluntary Disclosures Program (VDP) Help in Canada
Found a mistake, a missing return or income you never reported? The Canada Revenue Agency’s (CRA) Voluntary Disclosures Program lets you come forward first and ask for relief from penalties and interest. We prepare the corrected returns and a complete VDP application, so it is done properly the first time.
Up to 100% penalty relief and 75% interest relief when you come forward first
Corrected returns and the RC199 application, prepared together
Confidential review before anything is sent to the CRA
The Voluntary Disclosures Program (VDP) is the CRA’s way of giving people and businesses a second chance. If you come forward and correct a tax error or omission before the CRA finds it, the CRA may reduce the penalties and part of the interest you would otherwise face. It looks at every application case by case, and relief is never automatic.
It is not a tax amnesty. You still pay the tax you owe. What the program can change is the cost of being late: the late-filing and other penalties, and a share of the interest. Eligible applicants are also protected from prosecution for the information they disclose. The rules changed on October 1, 2025, and this page explains the current ones.
Ideal forAnyone with unfiled returns, unreported income or an error on a past filing who wants to put it right before the CRA contacts them.
What people use the VDP to fix
Unfiled tax returns
Unreported income
Cash and side income
Rental income
Foreign income and assets
GST/HST errors or missed returns
Payroll and withholding tax errors
Wrong or overstated expenses
How much relief can the VDP give you?
The relief depends on one thing: whether the CRA contacted you about the issue before you applied. These are the levels the CRA has used since October 1, 2025.
Come forward first
Unprompted application
General relief
100%
Penaltiesof applicable penalties
75%
Interestof applicable interest
No earlier CRA communication about the issue, or only a general educational letter.
Protection from prosecution for the information you disclose.
Gross negligence penalties do not apply to the disclosed information.
CRA already in touch
Prompted application
Partial relief
Up to100%
Penaltiesof applicable penalties
25%
Interestof applicable interest
The CRA has pointed to a specific issue, set a deadline, or received information about you from a third party.
Protection from prosecution and no gross negligence penalties still apply to what you disclose.
Waiting for a letter can cut the interest relief, so the order matters.
The tax itself is still payable. The program reduces penalties and interest, not the tax. A payment, or a request for a payment arrangement, is part of the application. The CRA decides every request, so no one can promise a result.
Who qualifies for the Voluntary Disclosures Program?
The CRA sets five conditions. All of them have to be met, and the application has to be complete.
1
It is voluntary
You come forward before an audit or investigation starts on the same information, for you or a related person.
2
It is at least a year late
The return or period is at least one year past its filing due date.
3
It involves penalties or interest
There is an error or omission, with penalties, interest or both that you want relief from.
4
It is complete
You include every supporting document, and answer CRA requests fully and promptly.
5
It includes payment
You pay the estimated tax owing, or ask for a payment arrangement, with the application.
When the VDP won’t help
The CRA does not give VDP relief in these cases:
An audit or investigation has already started on the same information.
The return would give you a refund, or you would owe no tax, interest or penalties.
The penalties or interest were already assessed.
You want to make or change a tax election.
There was an insolvency event in the years involved.
The matter is covered by an advance pricing arrangement, another tax administration, or a treaty agreement the CRA decides on its own.
These are not always the end of the road. Taxpayer relief and a careful response to the CRA may still help, and we look at that with you.
What is the difference between a prompted and an unprompted application?
The CRA asks one question: had it already pointed you to the issue when you applied? Here is how it sorts the common situations.
Your situation
Counts as
Relief level
The CRA has never contacted you about the issue
Unprompted
General relief
You received a general educational letter about the kind of issue (for example, reporting income)
Unprompted
General relief
A CRA letter, call or notice names your specific error or gives you a deadline to correct it
Prompted
Partial relief
The CRA got information from a third party about your involvement in non-compliance
Prompted
Partial relief
An audit or investigation has started on the same information
Not voluntary
No VDP relief
If you are unsure which row you are in, send us the letter you received. The wording decides it.
How many years of records does a VDP application need?
You disclose every error you know of, including those involving related people or businesses. Supporting documents cover a set number of years, depending on the kind of error.
6years
Canadian income or assets
Records for the most recent six years, for income or assets in Canada.
10years
Foreign income or assets
Records for the most recent ten years, for income or assets outside Canada.
4years
GST/HST
Records for the most recent four years, for GST/HST errors.
Years or periods with no errors don’t need to be included, but the CRA can ask for older years.
If a record no longer exists, the CRA expects a reasonable estimate rather than a gap.
The application also names anyone, such as an adviser or promoter, who advised you on the matter.
How do we prepare your VDP application?
Seven steps, and nothing goes to the CRA until you have approved it.
1
Confidential review
You tell us what happened, what the CRA has sent you and which years are involved. We tell you plainly whether the VDP fits.
2
Check your CRA account
With your authorization, we see what the CRA already has: filings, slips, assessments and any notices.
3
Gather and rebuild records
We collect statements, receipts and contracts, and rebuild what is missing from sources that still exist.
4
Prepare corrected returns
We prepare every return that needs to be filed or corrected, so the application is complete.
5
Work out what is owing
We estimate the tax, interest and penalties, and plan the payment or payment arrangement that goes with it.
6
File the application
We complete form RC199 and submit the full package to the CRA, online or by mail. You review and sign it first.
7
Handle the CRA’s follow-up
The CRA sends an acknowledgement that sets your effective date of disclosure, may ask questions, then sends a written decision. We handle all of it with you.
Want to test the waters first?
The CRA offers anonymous, informal, non-binding discussions before you apply. We can explain how that works and help you decide whether to use it.
What happens after you submit a VDP application?
The CRA does not publish a processing time, so we plan around the steps, not a date.
Acknowledgement
The CRA confirms receipt and sets your effective date of disclosure. Relief applies up to that date.
Review
An officer checks that every condition is met, and may ask for more information. The CRA can verify or audit any information, whether or not relief is granted.
Written decision
You are told in writing whether relief is granted and how much.
If you disagree
You can ask in writing for a second administrative review. After that, the Federal Court can be asked to review the decision within 30 days. The CRA does not allow a formal objection to a VDP decision.
After relief is granted you are expected to stay compliant. A later application is only considered if circumstances were outside your control, or the issue is a different one. A false or incomplete disclosure can lead to an assessment for any year, not only the ones you named.
What mistakes can cost you VDP relief?
These are the ones we see most often, and each one is avoidable.
1
Waiting for the CRA to call first
Once the CRA names your issue, the application is prompted and the interest relief drops from 75% to 25%.
2
Disclosing only part of the problem
An incomplete application can be refused. The CRA expects every known error, including those involving related people.
3
Leaving out the payment
Payment, or a request for a payment arrangement, is a condition, not an extra.
4
Guessing the numbers
Estimates are fine where records are gone, but they need a sound basis and must hold together.
5
Treating it as a one-time fix
After relief, late or missed filings put you back on the CRA’s radar, and a repeat request is harder.
6
Applying after an audit has begun
At that point the disclosure is no longer voluntary, so it is better to talk to us before you reply to the CRA.
VDP, taxpayer relief or just filing: which fits?
Three routes can reduce the cost of a tax problem. They suit different situations.
Compare
Voluntary Disclosures Program
Taxpayer relief
Just file or amend
Best when
You are coming forward about an error or omission before the CRA does.
Something outside your control made you late, such as illness, disaster or a CRA error.
The return is recent, or the fix leaves no penalties to remove.
What it can reduce
Penalties and part of the interest.
Penalties and interest.
Nothing extra, but it stops costs from growing.
How far back
The return or period must be at least one year past due.
Penalties for tax years ending in the last 10 calendar years.
Personal returns can generally be adjusted for the last 10 calendar years.
Who decides
The CRA, case by case.
The CRA, case by case.
The CRA assesses the filed return.
We look at all three for your situation and tell you which to use, or whether to combine them.
A plain answer on whether the VDP fits, before anything is filed.
CRA account review
Your filings, slips, assessments and notices, with your authorization.
Corrected returns
Every return that must be filed or amended, prepared together.
Tax and interest estimate
What is owing, what may be reduced and how to pay it.
RC199 application
The complete application and supporting documents, submitted to the CRA.
CRA follow-up handled
Acknowledgement, questions and decision, handled with you.
What stays with the CRA
The CRA decides whether an application is accepted and how much relief it gives. We cannot promise a result. What we promise is a complete, accurate application and honest advice at every step.
How much does a VDP application cost?
Every disclosure is different, so we quote each one individually, and you will know what we charge before we start. Here is what shapes the quote.
Years involvedOne year, or several.
Kinds of issueUnfiled returns, income, GST/HST, payroll or foreign.
State of your recordsComplete, partial, or mostly gone.
ComplexityA single person, or several related businesses.
CRA involvementNo contact yet, or letters already sent.
TimingA relaxed timeline, or a CRA deadline.
Free, no-obligation consultation
Clear quote agreed before we start
No hidden fees or surprise billing
Prefer to talk it through first? Call us, or send a quote request.
Meet us in person at any of our four offices, or work with us by phone and video. Applications go to the CRA online or by mail, so we can help wherever you live in Canada.
Head Office (Toronto)
3000 Danforth Avenue, Unit 3, Suite 101 Toronto, ON M4C 1M7
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Razu provided expert advice, represented me professionally, and worked diligently to resolve 4 years' worth of tax issues. Thanks to his knowledge and guidance, the matter was resolved swiftly, and the CRA even issued me a refund cheque—something every honest taxpayer appreciates. :) I highly recommend Lira Tax and Accounting for anyone needing reliable and knowledgeable tax support. Thank you so much!”
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VDP FAQs: eligibility, relief, prosecution and denied applications
Straight answers to what people ask us before they come forward.
It is a CRA program that lets you correct a past tax error or omission before the CRA finds it, and ask for relief from penalties and some interest. The CRA decides each application case by case, and the tax you owe is still payable.
No. The tax itself stays payable. The program can reduce penalties and part of the interest, and it can protect you from prosecution for what you disclose. It is a second chance to put things right, not forgiveness of the tax.
For applications received on or after October 1, 2025, an unprompted application can get 100% of the applicable penalties and 75% of the applicable interest removed. A prompted application, made after the CRA has identified your issue, can get up to 100% of penalties and 25% of interest. The CRA decides.
Unprompted means the CRA has not contacted you about the issue, or has only sent a general educational letter. Prompted means the CRA has named your specific issue, set a deadline, or received third-party information about you. Unprompted gets more relief, which is why timing matters.
Your application has to be voluntary, cover a return or period at least one year past its due date, involve an error or omission with penalties or interest, be complete, and include payment or a request for a payment arrangement. It is not available once an audit or investigation has started on the same information.
The CRA can prosecute serious non-compliance. A valid VDP application gives protection from prosecution for the information you disclose, and gross negligence penalties do not apply to it. That protection depends on the application being voluntary, complete and truthful.
You may still be able to apply, as a prompted application with partial relief. A general educational letter does not count against you. A letter that names your issue or sets a deadline does. If an audit has started, the VDP is not available, so send us the letter before you reply.
You disclose every error you know of. Supporting documents cover the most recent six years for Canadian income or assets, ten years for income or assets outside Canada and four years for GST/HST. Years with no errors need not be included, but the CRA can ask for older ones.
The CRA expects reasonable estimates where records do not exist. We rebuild what we can from CRA slips, bank and card statements and invoices, and we tell you what can be supported before anything is submitted.
You receive a written decision. You can ask in writing for a second administrative review, and then apply to the Federal Court within 30 days of the decision notice. You cannot file a formal objection to a VDP decision, but you can still ask for taxpayer relief.
The CRA can verify or audit any information you give it, whether or not it grants relief, so the application has to be accurate. Complete and truthful applications are the best protection.
Yes. The CRA offers anonymous, informal, non-binding pre-disclosure discussions with an official. We can explain how that works and help you decide whether to use it before you commit to applying.
We quote each disclosure individually after a free consultation, because years, records and complexity differ. The CRA does not publish a processing time, so we cannot promise one. We prepare the application as fast as accuracy allows.
Official sources we check
We confirm the rules on the CRA’s own pages. You can read them too:
Checked against these pages in October 2026. Rules and programs change, so we confirm the current position for your situation before we start. This page is general information, not legal advice.
