Made a Mistake on Your Taxes? Here’s What You Need to Know About the New CRA Voluntary Disclosures Program

Nobody’s perfect—especially when it comes to taxes. Maybe you accidentally missed some income, claimed something you shouldn’t have, or forgot to file altogether. The good news? The Canada Revenue Agency (CRA) understands that mistakes happen, and there’s a program designed to help you fix things: the Voluntary Disclosures Program (VDP).

Starting October 1, 2025, the CRA is introducing some big changes to the VDP. These updates are designed to make it easier for Canadians to come forward, correct past errors, and move forward with confidence.

Why the VDP Is Worth Considering

The VDP gives taxpayers a chance to voluntarily correct mistakes before the CRA comes knocking. By applying, you can:

  • Avoid hefty penalties (and reduce interest charges)
  • Gain peace of mind knowing your taxes are accurate
  • Do your part in supporting Canadian programs, benefits, and services

Think of it as a “fresh start” program for your taxes—it’s not about rewarding non-compliance, but about encouraging honesty and reducing the fear of coming forward.

What’s Changing in October 2025

Here’s a breakdown of the updates you’ll want to know about:

1. More People Qualify

In the past, if the CRA had already sent you a letter questioning something in your return, you were out of luck. Now, if you’ve received an educational letter (for example, pointing out missed income or questionable expenses), you may still qualify.

⚠️ Important: If you’re already under audit or investigation, or if your actions were clearly deliberate, the program won’t be available.

2. Two Levels of Relief

  • General Relief (Unprompted Applications):
    • You apply before the CRA contacts you.
    • You can get 100% penalty relief and 75% interest relief.
  • Partial Relief (Prompted Applications):
    • You apply after receiving a compliance notice.
    • You may get up to 100% penalty relief and 25% interest relief.

Either way, that’s a much lighter financial hit than ignoring the problem.

3. Simpler, Friendlier Process

The CRA has reworked the program into plain language and streamlined the application process. Forms are easier to follow, and electronic submissions mean less hassle.

4. Updated Document Requirements

Depending on your situation, you’ll need to disclose information covering:

  • 10 years for foreign income or assets
  • 6 years for Canadian income or assets
  • 4 years for GST/HST information (after Oct 1, 2025)

How to Apply

To qualify, your application must be:

  • Voluntary (before CRA enforcement begins)
  • Complete (all errors and omissions included)
  • At least one year past the filing due date
  • Submitted with payment (or a payment plan request) for the estimated taxes owing

If you’re not sure you qualify, you can request an anonymous pre-disclosure discussion with a CRA agent.

  • Individuals (Canada & U.S.): 1-800-959-8281
  • Businesses (Canada & U.S.): 1-800-959-5525

Final Thoughts: Don’t Wait to Take Action

The new CRA Voluntary Disclosures Program is more accessible than ever. If you’ve been losing sleep over past tax mistakes, this is your opportunity to come clean, minimize penalties, and move forward stress-free.

At Achen Henderson CPAs, we’ve helped many clients navigate the VDP process. We can help you:

  • Review your tax history
  • Determine your eligibility
  • Prepare a complete, compliant application
  • Communicate with the CRA on your behalf

If you think the VDP could apply to you, don’t wait until it’s too late. Reach out today, and let’s explore your options before October 1, 2025.