What is the Voluntary Disclosure Program?
Important: The revised Voluntary Disclosures Program (VDP) came into effect on March 1st, 2018. This revised VDP narrows the eligibility criteria for the program. Refer to the Canada Revenue Agency (CRA) website for more information on changes that were made to the VDP.
It’s understandable that every now and again, you might make an error when completing your return – but that doesn’t mean you won’t have the opportunity to set things right. If, in 2022, you didn’t:
- Report all your taxable income on your return
- Remit your employees’ source deductions
- Report GST/HST
- Report foreign-sourced income that’s taxable in Canada
- or -
if you violated any of the other rules under the Income Tax Act, you might be eligible to set things right through the Canada Revenue Agency (CRA) Voluntary Disclosure Program (VDP).
To take advantage of the VDP program, you’ll need to tell the CRA about the incorrect information you submitted by sending them a completed RC199: Voluntary Disclosures Program (VDP) Taxpayer Agreement form.
Once the CRA receives your form RC199, they’ll evaluate your taxes and your situation, and make a decision on what your next steps will be.
Note: Submitting form RC199 can go a long way in persuading the CRA to be lenient in terms of prosecution and penalties, so it’s best to submit this form as soon as you can.
- Voluntary Disclosures Program (CRA website)