The Canada Revenue Agency today reminded Canadians that they can change a previously filed tax return, or file a return that should have been filed, through its Voluntary Disclosures Program (VDP). By making these changes through the VDP, the CRA may provide relief from prosecution and penalties.
By applying to the CRA under the VDP, the taxpayer might only pay the taxes owed plus interest. Valid disclosure must meet all four of the following conditions:
- a penalty would apply
- it is voluntary, which means you make it before you are aware of the CRA taking any compliance action against you
- the information is at least one year overdue
- it includes all the relevant information.
The CRA says anyone can use the VDP, including individuals, businesses, employers, payers, trusts and estates, whether a resident or a non-resident of Canada.
To learn more about the VDP, click here.