Made a mistake on your taxes? Upcoming changes to the Voluntary Disclosures Program

The Canada Revenue Agency (CRA) is committed to helping taxpayers correct their past tax mistakes. The Voluntary Disclosures Program (VDP) allows for well-intentioned taxpayers to voluntarily correct their tax affairs and receive some financial relief.

On October 1, 2025, changes to the VDP will come into effect. These changes will make it easier to correct unintentional filing errors or omissions and make the program more accessible.

The program remains focused on providing relief that is fair and does not reward non-compliance. Taxpayers who use the program will not receive relief that puts them in a better financial position than those who comply with tax rules from the start.

When you voluntarily correct your tax mistakes and pay what you owe:

• you will have peace of mind that you comply with tax rules

• you will support other Canadians by contributing to revenue generation for benefits and credits

  
  

Key changes to the program

The VDP is now easier to understand and apply to. Some of the changes include:

• Increased eligibility

• Updated relief

• Simplified language and process

• Documents to include

  
  

Increased eligibility

Taxpayers who receive communications from the CRA (like an educational letter) about a potential non-compliance issue (for example, not reporting income or claiming ineligible expenses) could now be eligible for the program. The CRA will continue to restrict VDP eligibility for taxpayers who are under audit or investigation, and for taxpayers who were egregiously or intentionally non-compliant.

Updated relief

Voluntary applications will be eligible for two different types of relief:

• Unprompted applications (general relief)

  • Applications submitted with no prior compliance communication from the CRA

  • Eligible for 75% interest relief and 100% penalty relief

• Prompted applications (partial relief)

  • Applications submitted after receiving compliance communication from the CRA

  • Eligible for 25% interest relief and up to 100% penalty relief

Note: Taxpayers under audit or investigation in respect of the information being disclosed will not be eligible for the program.

Simplified language and process

The new policy is written in plain language that makes it easier for taxpayers to understand. Due to the transition from paper to electronic, the application process and form will be simplified. Now, it will be easier than ever to submit an application.

Documents to include

Applications involving non-compliance over multiple years should include the following number of impacted years:

• Under the Information Circular IC00-1R7, Voluntary Disclosures Program:

  • The most recent 10 years of foreign-sourced income or assets

  • The most recent 6 years of Canadian-sourced income or assets

•  Under the GST/HST Memorandum 16-5-1, Voluntary Disclosures Program  (Applications Received On or After October 1, 2025):

  • The most recent 4 years of GST/HST related information

Applying to the VDP

When applying to the VDP, applications must:

• Be voluntary

• Be complete

• Include an error or omission with applicable interest charges, penalties, or both

• Include the payment or request for a payment arrangement for the estimated tax owing amount, if applicable

• Include information that is at least one year past the due date for filing

If you are not sure the VDP may be the right program for you, you can call to schedule an anonymous pre-disclosure discussion with a CRA official to discuss your potential disclosure:

• Individuals (Canada and the United States): 1-800-959-8281

• Businesses (Canada and the United States): 1-800-959-5525

For more information on the changes to the program, go to IC00-1R7, Voluntary Disclosures Program and GST/HST memorandum 16-5-1, Voluntary Disclosures Program (Applications Received On or After October 1, 2025). For more information on the VDP, go to Voluntary Disclosures Program.