Introduction – Voluntary Disclosures Program Proposed
Changes
The Voluntary Disclosures Program (VDP or tax amnesty) is a
Canada Revenue Agency (CRA) program that allows Canadian taxpayers
to come forward and correct their tax mistakes provided that
certain requirements are met. Currently, in order for a
taxpayer's voluntary disclosure to be accepted, four
requirements must be met. First, there cannot be any ongoing
enforcement action in place against the taxpayer with respect to
the issues being disclosed. Second, the disclosure must be
complete. Third, the disclosure must involve the application of a
penalty or the potential application of a penalty. Fourth, the
disclosure must include information that is at least one year past
due. If these requirements are met and the taxpayer's voluntary
disclosure is accepted, then the CRA will provide full penalty
relief, partial interest relief and refrain from pursuing criminal
charges against the taxpayer.
