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The Benefits of the Voluntary Disclosure Program

Last Updated: October 26, 2016

Contents

Why Consider the VDP?
Who Qualifies for the VDP?
The Biggest Perks of Using the VDP

Last updated: Oct. 26, 2016

The Voluntary Disclosure Program (VDP): Your Second Chance to Get Tax Compliant

Tax slips piled up in a drawer. A missed deadline you swore you’d remember. An expense you didn’t realize was taxable. However it happened, you’re not alone—and the Canada Revenue Agency’s (CRA) Voluntary Disclosure Program (VDP) might be your way to fix it.

Think of the VDP as a fresh start. If you come forward before the CRA contacts you, you can avoid penalties and legal consequences. You’ll still need to pay any taxes owed (plus interest), but the relief from fines—and the peace of mind—can be worth it.

Why Consider the VDP?

Ignoring tax mistakes rarely makes them disappear. In fact:

Unfiled returns raise red flags with the CRA.
Unpaid tax bills quickly balloon with interest and penalties.
Delaying only makes the problem worse.

The VDP lets you correct past filings—whether it’s unreported income, missed GST/HST, or overlooked foreign earnings—while minimizing the fallout.

Who Qualifies for the VDP?

The program is open to individuals, businesses, trusts, and more, but not every case is eligible. You must meet all five key conditions below:

Voluntary– The CRA can’t already be investigating you.
Complete Disclosure– You must disclose all necessary info—no half-truths.
Penalty Involved – There must be taxes owing or a potential penalty.
At Least One Year Late – The VDP doesn’t cover current-year filings.
Include Payment – Pay your estimated tax bill or request a payment arrangement.

You are not eligible for the relief of penalties for anything that has to do with bankruptcy returns, income tax returns with no taxes owing, elections where you chose an alternative tax treatment, advance pricing arrangements, rollover provisions, or post-assessment requests for penalty and interest relief.

The Biggest Perks of Using the VDP

Voluntarily catching up on your taxes will lower your stress levels and be better for your pocketbook in the long run. The main benefits of the VDP are:

No penalties or prosecution (just taxes + interest).
Reinstated benefits, like the Canada Child Benefit (CCB) and GST/HST credits.
RRSP room restored, so you don’t lose future contribution space.

But here’s the catch: The VDP is typically a one-time opportunity. Once you use it, the CRA expects you to stay compliant moving forward.

Need More Info? Check These CRA Resources

For official guidelines or forms, the CRA’s website has everything you need:

Voluntary Disclosures Program (CRA Overview) – Program rules, eligibility, and how to apply.
How to Submit a Disclosure – Step-by-step instructions.
FAQs on Penalties and Interest – What to expect if you owe back taxes.

Need Help? FBC Specializes in Tax Fixes

If you’re behind on filings or worried about errors, you’re not alone. At FBC, we’ve helped Canadian farmers and small business owners navigate taxes for over 70 years.

We can help you:

Determine if the VDP is right for you.
Prepare and submit a complete disclosure.
Minimize what you owe—legally.

Don’t wait for the CRA to come knocking. Get ahead of the problem.

Free 15-Minute Consultation
No obligation, just clear answers. Chat with an FBC expert today.

Let’s get your taxes back on track—without the stress.