The CRA’s Voluntary Disclosures Program (VDP) lets you fix past tax mistakes, such as unreported income, unfiled returns, or uncollected GST/HST, in exchange for relief from penalties, part of the interest, and prosecution. Under the rules in force since October 1, 2025, if you come forward before the CRA contacts you (“unprompted”), you can get 100% penalty relief and 75% interest relief. If the CRA has already reached out (“prompted”), you can still apply and get up to 100% penalty relief and 25% interest relief. You still pay the tax.
Know there’s something wrong with your past returns and you’ve been losing sleep over it? This is the program built for exactly that.
On this page
- What Is the CRA Voluntary Disclosures Program and Who Can Use It?
- The Conditions Your Disclosure Must Meet
- How Much Relief You Get Under the October 2025 Rules: Unprompted vs Prompted
- What You Can Disclose: Unreported Income, Unfiled Returns, GST/HST and Payroll
- How to Apply: Pre-Disclosure Discussion, Form RC199 and Payment
- When VDP Isn’t the Right Route (T1 Adjustment and Taxpayer Relief Instead)
- FAQ: CRA Voluntary Disclosures
- Talk to Us Before the CRA Contacts You
What Is the CRA Voluntary Disclosures Program and Who Can Use It?
The VDP is the CRA’s official way to come clean. You tell the CRA about the error, pay the tax, and in return they waive penalties and some interest, and agree not to prosecute.
It’s open to:
- Individuals
- Corporations
- Trusts
- Partnerships
- Employers (for payroll remittances)
- GST/HST registrants and anyone who should have registered
It covers income tax, GST/HST, payroll source deductions, and several other federal taxes and programs the CRA administers.
The Conditions Your Disclosure Must Meet
Your application has to tick all of these boxes:
| Condition | What it means in practice |
| Voluntary | Filed before the CRA starts enforcement on the issue. Under the 2025 rules, it can still qualify as “prompted” if the CRA has sent a general letter or nudge. |
| Complete | You disclose all the errors for all affected years. Partial disclosures get rejected. |
| Involves a penalty | There has to be a penalty that would otherwise apply. If there’s no penalty, you don’t need VDP. Just file or adjust. |
| At least one year overdue | The information is at least one year past due (or one reporting period for GST/HST). |
| Includes payment | You pay the estimated tax owing with the application, or ask for a payment arrangement. |
How Much Relief You Get Under the October 2025 Rules: Unprompted vs Prompted
The old “General Program” and “Limited Program” are gone. Now there are two tiers:
| Â | Unprompted (you came forward first) | Prompted (the CRA contacted you first) |
| Penalty relief | Up to 100% | Up to 100% |
| Interest relief | 75% of interest for the years before the three most recent years that a return was due | 25% of interest for the same years |
| Protection from prosecution | Yes | Yes |
| Tax owing | You pay it in full | You pay it in full |
What makes an application “prompted”? Things like a letter or educational campaign from the CRA about your specific issue, or information the CRA got from a third party or another government that relates to you. A full audit already underway is different. At that point it’s usually too late for VDP.
Bottom line: Every week you wait, you risk moving from “unprompted” to “prompted” and losing two-thirds of your interest relief.
What You Can Disclose: Unreported Income, Unfiled Returns, GST/HST and Payroll
Common situations we see:
- Unreported income: cash sales, side gigs, gig apps, rental income, crypto gains
- Foreign income and assets: foreign bank accounts, overseas rental property, and unfiled T1135 forms
- Unfiled returns: personal (T1), corporate (T2), or trust (T3) returns for several years
- GST/HST: you passed the $30,000 threshold and never registered, or you collected GST/HST but didn’t remit it
- Payroll: source deductions withheld but not remitted, or workers paid “under the table”
- Ineligible expenses: personal expenses claimed through the business
Not eligible: applications made mainly to get a refund or a rebate, ones based on unpaid election forms only, or situations where the CRA has already started an audit or investigation on that issue.
How to Apply: Pre-Disclosure Discussion, Form RC199 and Payment
Step 1: Optional pre-disclosure discussion
You (or your accountant) can talk to the CRA on a no-names basis to understand how your situation would likely be treated. It’s not binding, but it helps you decide.
Step 2: Gather everything
Bank statements, invoices, foreign account statements, crypto records, slips. You’ll need to recalculate tax for every affected year.
Step 3: Complete Form RC199
This is the VDP application. Attach the amended or late returns, supporting documents, and a clear explanation of what happened.
Step 4: Pay
Include payment of the estimated tax owing. If you can’t pay it all, ask for a payment arrangement as part of the application.
Step 5: Wait for the CRA’s decision
The CRA reviews the application, may ask for more information, and then issues reassessments with relief applied.
Tip: Have a professional prepare the disclosure. A disclosure that turns out to be incomplete can be cancelled, and then the CRA already has everything you told them.
When VDP Isn’t the Right Route (T1 Adjustment and Taxpayer Relief Instead)
| Your situation | Better option |
| Simple mistake, no penalty would apply (like a forgotten deduction or a small missed slip, first time) | File a T1 adjustment or late return |
| You couldn’t comply because of illness, disaster or other events beyond your control | Ask for taxpayer relief (Form RC4288) |
| The CRA has already started an audit on the issue | Work with the auditor. VDP is no longer available for that issue |
| You disagree with an assessment | File a Notice of Objection |
FAQ: CRA Voluntary Disclosures
Can I apply anonymously?
Not for the actual application. You can have an anonymous pre-disclosure discussion first.
How many years back do I have to go?
Generally all years affected, but the CRA usually asks for up to 10 years for income tax.
Can I use the VDP more than once?
Usually only once. A second application is accepted only in rare cases where the circumstances were beyond your control.
What if I can’t afford to pay the tax?
You can ask for a payment arrangement. You may need to provide financial information to show you can’t pay in full.
Will I go to jail for not reporting income?
If your VDP application is accepted, the CRA won’t refer you for criminal prosecution on the disclosed matters.
How long does it take?
It varies from a few months to over a year, depending on complexity.
Is the old 50% interest relief still available?
No. The October 2025 rules replaced it with 75% (unprompted) or 25% (prompted).
Talk to Us Before the CRA Contacts You
Coming forward is stressful, but the relief is real, and it’s biggest if you act before the CRA reaches out. Maxpro Financials prepares voluntary disclosures, reconstructs missing records and files late returns for individuals and businesses in BC and Alberta, confidentially. Book a free, confidential consultation or see our tax services.
