Number Of Voluntary Disclosures Continues To Increase

Last week, the Canada Revenue Agency (the "CRA") issued its annual report to Parliament. Among other matters, the CRA reported on the performance of its Voluntary Disclosures Program (the "VDP").

The VDP permits taxpayers to voluntarily disclose historical non-compliance, and correct tax reporting and payment deficiencies, in exchange for penalty (and possible interest) relief. (For a detailed summary of the VDP, please see our article on the program here.)  

The CRA stated in its annual report that there has been a significant increase in the number of voluntary disclosures made under the VDP. In particular, the CRA reported that over the past year:

• More than $1.3 billion of unreported income was voluntarily disclosed under the VDP – a 65% year-over-year increase in the amount of unreported income disclosed under the program.