CRA Voluntary Disclosure Program Changes
The Voluntary Disclosure Program (VDP) is a tax relief system that allows taxpayers to correct past errors or omissions, receiving reduced penalties, and partial interest relief. In September 2025, the CRA updated the VDP which received an update that is effective on or after October 1, 2025.
Types of Application:
Unprompted application:
The unprompted application is if you came forward on your own to the CRA to report an issue if they have not contacted you. You may receive the following
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Up to 100% penalty relief of penalties
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75% relief on applicable interest charges
Prompted application:
The application prompted is when the CRA contacted you by letter or notice regarding a tax issue, without being under audit or investigation. You may receive the following
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Up to 100% penalty relief of penalties
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25% relief on applicable interest charges
What’s New
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Taxpayers are now only required to correct the most recent six years for domestic tax issues.
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Eligibility, even when there is no penalty, only unpaid tax and interest
Errors involving foreign income or assets located outside Canada continue to require disclosure for the past 10 taxation years.
The above information is of a general nature only and should not be relied upon for specific situations. Click here for additional tax accounting services information. Call Marlies Y Hendricks, CPA at 416-766-3941 to discuss your tax case in the event of a tax audit and to set up an appointment if you'd like professional help to represent you.
