Voluntary Disclosure

Overdue returns can be filed through the Voluntary Disclosure program, or VDP. This program is designed to aid individuals who have fallen behind in filing their taxes. However, there are certain conditions that must be met before a taxpayer can take advantage of this program.

There are four conditions that must exist before an individual or corporation is allowed to use the VDP:

1. The disclosure must be voluntary. If you are already being investigated by the CRA, it is too late.
2. You must initiate the disclosure and contact the CRA before they contact you!
3. The disclosure must be complete and accurate.
4. The disclosure needs to involve a penalty. If no penalty exists then declare and file your return as usual.

Information for disclosure must be from over a year ago. If the information is from less than one year, simply register yourself as not employed to use this program to file late and avoid penalty. Trying to see if you qualify for the VDP and using it can be a little confusing, but whether you are eligible for assistance or not, taxes should always be filed. If they are not then you will compound penalties and interest.