Correct Tax Mistakes Before the CRA Finds You
If you’ve made a mistake on your taxes whether by failing to file a return, underreporting income, or omitting foreign assets, the Canada Revenue Agency (CRA) may assess significant penalties, interest, or even pursue prosecution. Fortunately, the CRA Voluntary Disclosure Program (VDP) offers a second chance for taxpayers who come forward before the CRA initiates enforcement. With the guidance of a Toronto tax lawyer, your disclosure can be properly prepared and positioned for acceptance.
At Kirshen Tax Law, we are Toronto tax lawyers who help individuals and businesses across Canada navigate the VDP and avoid costly consequences.
What Is the CRA Voluntary Disclosure Program?
The Voluntary Disclosures Program allows taxpayers to correct inaccurate, incomplete, or unfiled tax information. If your application is accepted, the CRA may waive penalties, reduce interest, and guarantee protection from criminal prosecution.
But timing is everything: the disclosure must be made before the CRA contacts you or starts an audit.
Who Can Use the CRA Voluntary Disclosure Program?
You may qualify if:
- You are disclosing information voluntarily (i.e., the CRA has not yet reached out);
- Your disclosure is complete and accurate;
- The information is at least one year past due (for income tax purposes) or one reporting period past due (for GST/HST); and
- You agree to pay the taxes owing, either upfront or through a payment arrangement.
This program applies to a wide range of issues, including but not limited to:
- Unreported offshore income;
- Missed T1135 filings for foreign assets;
- Failure to register or remit GST/HST;
- Unfiled personal or corporate returns; and
- Incorrect deductions or credits claimed.
What Relief Is Available?
If the CRA accepts your VDP submission, you may receive:
- Full cancellation of penalties.
- Partial interest relief.
- No criminal prosecution.
However, relief is not guaranteed. Each submission is reviewed on a case-by-case basis, and the CRA has discretion to accept or reject your disclosure. This is why it’s critical to submit a properly prepared and persuasive application. A Toronto tax lawyer can help structure your disclosure to maximize the likelihood of success and reduce the risk of rejection.
Why Work With a Toronto Tax Lawyer?
While taxpayers can submit VDP applications on their own, working with an experienced tax lawyer improves your chances of success. At Kirshen Tax Law, we:
- Assess your situation and eligibility for the VDP;
- Prepare a detailed, legally sound disclosure package;
- Communicate with the CRA on your behalf; and
- Protect your rights throughout the process.
We’ve helped clients across Canada fix past mistakes while minimizing financial exposure and stress.
Kirshen Tax Law Can Help
Once the CRA begins an audit or investigation, you are no longer eligible for the Voluntary Disclosures Program. If you’re considering the CRA voluntary disclosure program, we’ll help you submit a persuasive application that protects your rights and minimizes penalties
Contact Kirshen Tax Law today for a free 20-minute consultation with an experienced Toronto tax lawyer. We’ll explain your options, assess your eligibility, and prepare a compelling CRA voluntary disclosure that minimizes penalties, interest, protects your rights.
Jeff Kirshen BA, JD (CA), JD (US)
Tax Lawyer | Founder, Kirshen Tax Law
Disclaimer
The content on this website, including articles and blog posts, is provided for general informational purposes only. It reflects the laws and regulations as of the date of publication, which may have since changed. This content is not intended to serve as legal advice and should not be relied upon as such. Tax laws and situations can be complex and unique to each individual. The information provided may not apply to your specific circumstances. For personalized advice regarding your tax or legal matters, we recommend consulting a qualified lawyer.