Voluntary Disclosures Program Support for Canadians Correcting Past Tax Filings
Unfiled returns, unreported income or foreign assets left off a T1135 do not fix themselves. Bestax helps you work out what needs correcting, whether the CRA Voluntary Disclosures Program fits, and how to prepare a complete application.
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When a Voluntary Disclosure Is Worth Considering
The VDP lets individuals and businesses correct tax mistakes or omissions before the CRA finds them, in exchange for possible relief from penalties and part of the interest. It suits situations where something was missed, not a single late return you can simply file.
- Income that was never reported, such as cash sales, side business income, rental income or tips.
- Foreign bank accounts, investments or property that should have been reported on Form T1135.
- Several years of personal or corporate returns that were never filed.
- GST/HST collected but not remitted, or input tax credits claimed in error.
- Payroll source deductions that were withheld but not sent to the CRA.
- Expenses or credits claimed in past years that you now know you were not entitled to.
Timing matters. Once the CRA has opened an audit or contacted you about the same issue, the disclosure is generally no longer unprompted, and the relief available changes.
Already received a CRA letter, review or audit notice? Start with our CRA Audit & Review Support.
What Our Voluntary Disclosure Service Covers
From the first confidential review to the CRA’s decision, we prepare each part of the disclosure and keep it consistent.
- A confidential review of what was missed, for which years, and how much tax may be involved.
- Advice on whether the VDP fits, or whether filing or amending returns directly is the better route.
- Reconstruction of income and expenses from bank statements and records where books were not kept.
- Preparation of the missing or amended returns, slips and information forms for each year.
- Completion of Form RC199, the CRA’s Voluntary Disclosures Program application, with its supporting schedules.
- Our authorization to act for you, and handling of the CRA’s follow-up questions until a decision is made.
How the CRA Decides a VDP Application
The CRA accepts a disclosure into the program only if it meets the program’s conditions, and it decides how much relief to grant. Applications made on or after October 1, 2025 are assessed under the CRA’s updated program terms.
Under those terms the CRA separates unprompted applications, made before it has contacted you about the issue, from prompted ones. Unprompted applications qualify for more relief, so acting early can matter as much as acting at all.
The disclosure must be complete: every year and every issue, not only the ones you think the CRA may find.
It must involve a penalty, or a potential penalty, and information that is at least one year past due.
It is made on Form RC199 with the corrected returns and supporting documents, not by letter alone.
Relief is not available once enforcement action on the same issue has started, and the CRA can cancel relief if the disclosure proves incomplete.
The tax itself is still owed. The VDP can reduce penalties and part of the interest; it does not cancel the tax that should have been paid.
Common Disclosures and What They Involve
Most disclosures we see fall into a few patterns. Each needs its own returns and records, and each carries its own penalty exposure if it is left for the CRA to find.
| Situation | What has to be corrected | Years usually involved | Exposure if the CRA finds it first |
|---|---|---|---|
| Unreported business or rental income | Amended T1 or T2 returns with the income and its expenses | Each year the income was earned | Repeated-failure and gross negligence penalties, plus interest |
| Foreign assets not reported | Form T1135 for each year, and any foreign income on the returns | Each year cost exceeded $100,000 | Late-filing penalties per form, and penalties on the unreported income |
| Unfiled returns | Every missing T1, T2 or T3 return | All years not filed | Late-filing penalties and interest on the balance owing |
| GST/HST or payroll not remitted | Corrected GST/HST returns or payroll remittances and slips | Each reporting period affected | Penalties on unremitted amounts, and possible director liability |
Interest relief is limited to the most recent ten calendar years, under the CRA’s taxpayer relief rules. Older years can still need correcting.
What We Need to Prepare Your Disclosure
A disclosure is only as good as its completeness, so we start by gathering everything that touches the years involved.
Missing records are common. Where they are, we rebuild figures from bank and third-party statements and note the approach in the application.
- Returns and notices of assessment for the years already filed.
- Bank and credit card statements for the years involved, in Canada and abroad.
- Records of the income that was missed: invoices, sales reports, rent ledgers or platform statements.
- Statements for foreign accounts, investments or property, with their cost.
- Any letters you have received from the CRA, even unrelated ones.
- For a business: its books, GST/HST returns and payroll records for the period.
Our Voluntary Disclosure Process
Confidential first call
You tell us what happened. We explain the options and whether the VDP is likely to be the right route.
Scope the disclosure
We identify every year, tax and form involved, so the application is complete from the start.
Rebuild the figures
We gather your records, reconstruct what is missing and calculate the tax for each year.
Prepare the application
We complete Form RC199 and the corrected returns, and review every figure with you before anything is sent.
Submit and respond
We file the application as your representative and answer the CRA’s questions while it is reviewed.
Stay compliant
Once the CRA decides, we make sure current-year filing stays on time so the issue does not come back.
Why Clients Choose Bestax for a Voluntary Disclosure
A straight assessment
We tell you whether the VDP fits your situation, including when filing directly would serve you better.
Complete, not partial
We scope every year and every tax involved, because an incomplete disclosure can cost you the relief.
Records rebuilt properly
Our accountants reconstruct missing figures from bank and third-party records, with the method documented.
One point of contact
We deal with the CRA on your behalf, so its questions come to us rather than to you.
Confidential throughout
Your situation is discussed with you and the CRA only, from the first call to the decision.
Related Bestax Services
CRA Audit & Review Support when the CRA has already contacted you about a review or audit.
Catch-Up Bookkeeping to rebuild missing books before the years can be filed or disclosed.
Personal Tax Returns for current and prior-year T1 returns once the past is corrected.
T2 Corporate Tax Returns for corporations bringing their annual filing back on schedule.
What Our Clients Say
Bestax Accountants in Mississauga provides exceptional service for small businesses. Their expertise in corporate accounting, tax planning, and payroll services has been invaluable to my company.
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Frequently Asked Questions
It is the CRA’s program for taxpayers who want to correct errors or omissions in past tax affairs before the CRA finds them. An accepted disclosure can receive relief from penalties and part of the interest, but the tax itself remains payable.
Possibly, but the application is then generally treated as prompted, and the relief available is lower than for an unprompted one. If the CRA has already started an audit or enforcement action on the same issue, the program is generally no longer available for it.
Usually not. A single late return can normally be filed directly, with the late-filing penalty and interest assessed in the usual way. The VDP is meant for situations where penalties for misreporting or several years of non-compliance are at stake.
It must cover every year affected for the issue disclosed, because the CRA requires a complete disclosure. Interest relief, however, is limited to the most recent ten calendar years.
For an accepted disclosure, the CRA’s program terms include protection from criminal prosecution for the matters disclosed, in addition to the penalty relief. That protection is not available if the disclosure is not accepted or proves incomplete.
Yes. With your authorization, we prepare and submit the application and answer the CRA’s questions on your behalf while it is being reviewed.