Voluntary Pre-disclosure discussion (VDP)

Voluntary Disclosure Program (VDP)- Get a Second Chance With the CRA

The Canada Revenue Agency’s Voluntary Disclosures Program (VDP) gives Canadians a second chance to correct a previously filed return or file one that was never submitted. If your application is accepted, you may avoid prosecution and, in many cases, reduce or eliminate penalties — though taxes and some interest will still apply.

100% Hands-On Canadian Tax Preparation Training

Introductory & Advanced Classes — November & December
$310 per person — includes 2 days of intense sessions
Saturday & Sunday: 3:00 PM – 9:00 PM · Weekday classes also available
📞 (519) 725-9544  |  ✉ tax@fairtaxcanada.com

The Two VDP Programs

General Program

For taxpayers correcting unintentional errors. No penalties, no prosecution. Partial interest relief for years before the 3 most recent returns. Typically a 50% reduction on applicable interest for older years.

Limited Program

For situations involving intentional non-compliance (offshore accounts, deliberate avoidance). No prosecution, no gross negligence penalties — but other penalties and full interest apply. No interest relief granted.

Is Your Disclosure Valid? (4 conditions)

Voluntary — CRA must not already be investigating you or have contacted you about the issue

Complete — All relevant information for all applicable years must be included

Penalty applies — The information must involve a penalty under the Income Tax Act

One year overdue — The information must be at least one year past due

Common Taxpayer Mistakes to Avoid

Late filing — First offence penalty is 5% of balance owing + 1% per month (up to 12 months)

Missing tax slips — CRA cross-checks all T4, T4A, T5, T3 slips against your return automatically

Ignoring CRA letters — Always respond promptly; unresolved letters can lead to bank freezes or liens

Poor business records — CRA can audit up to 7 years back; keep all receipts for 6 years

Not declaring world income — All Canadian residents must report income from every country

100% Hands-On Canadian Tax Preparation Training

✅ WE CAN HELP IF…
You have not filed your return in years — we can go back up to 10 years
 
You have lost your tax slips — we can retrieve them with your authorization
 
You received a CRA letter you do not understand
 
You owe money and CRA’s collection department has contacted you
 
You were reassessed and disagree with CRA’s decision

Book a Free VDP Consultation - Call (519) 725-9544

All information on this page is for general informational purposes only and is not a substitute for professional tax advice. FairTax Canada (Fairtax Business Services — 8355738 Canada Corp) assumes no responsibility for outcomes based on this information.