Voluntary Disclosures Program Purpose of the VDP

Voluntary Disclosures Program
Income Tax Information Circular IC00-1R2
Purpose of the VDP

a penalty relief and prosecution protection
program operating at the Minister’s discretion
legislative provisions listed in IC00-1R2

promotes voluntary compliance with Canada’s
tax laws and programs in accordance with the
CRA Mission and Values

separate from the Taxpayer Relief Program and
subject to very different conditions for approval,
though relief may be available under either or
both program(s)
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VDP Requests
• must be in writing
• should include form RC 199 Taxpayer
Agreement - Voluntary Disclosures Program
• should speak to four validity conditions, and
provide the information listed in IC00-1R2
paragraphs 43 to 45.
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Validity Conditions
1. The VDP considers only required returns,
adjustments, remittances, and other filings
subject to penalties.
IC00-1R2 paragraph 19 exclusions include:
•
•
•
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elections;
income tax returns with no tax payable;
bankruptcy returns;
post-assessment requests.
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Conditions continued
2. Applications must be voluntary
Was the taxpayer was aware of enforcement
action that was likely to have uncovered the
information disclosed?
3. The disclosure must include information
more than one year past due or to correction
to a previously filed return.
4. Taxpayers are expected to make a complete
disclosure including all past-due filings
and/or adjustments for all CRA accounts
with which the taxpayer is associated (e.g.
personal, business, corporate, etc.).
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“No-Name” Disclosure Method
Used to secure an effective date of
disclosure and provide an opportunity for the
taxpayer or representative to participate in
preliminary discussions with the VDP about
their situtation on a ”no-name” basis before
naming the taxpayer(s) within 90 days.
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Process
Upon receipt of an application, an
acknowledgement letter is sent to the taxpayer
or authorized representative indicating the case
number and effective date of disclosure.
Returns or adjustment request forms to
complete the disclosure are expected within 90
days of the effective date of disclosure or relief
may be denied and the file closed.
A decision letter is sent under the signature of
the delegated authority (i.e. Team Leader or
Assistant Director).
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Redress
There are no Objection rights regarding a VDP
decision.
Redress is through:
•Second Administrative Review Process
•Federal Court Judicial Review.
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VDP – Management
Regional VDP Offices:
• Atlantic (NL, PE, NS, NB) – St. John TSO
• Quebec – Montreal TSO
• Ontario – St. Catharines, London, ECO TSOs
• Prairie (MB, SK, AB) – Edmonton TSO
• Pacific – Various TSOs
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VDP – Contact Us
Refer to CRA public website for contact
information
www.cra-arc.gc.ca
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Frequently Asked Questions
• Second VDP request for same
taxpayer/registrant
• 90 deadline and extensions
• Repatriation of foreign assets
• Asset recovery situations
• Death or incapacitation of investor
• Enforcement action in relation to various
business lines
• No names disclosures and the assessing
position
• VDP requests that extend beyond the 10
year window that the CRA can provide relief
of penalties
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