Voluntary Disclosures Program (VDP)

Voluntary Disclosures Program (VDP) – Correct Past Tax Mistakes

The Voluntary Disclosures Program (VDP), administered by the Canada Revenue Agency (CRA), allows taxpayers to voluntarily correct tax non-compliance issues while avoiding penalties and prosecution. If you have undeclared income, unfiled tax returns, or reporting errors, KR Law Firm provides expert legal guidance to navigate the VDP process effectively.

Who is Eligible for the Voluntary Disclosures Program?

The VDP applies to individuals and businesses that need to correct tax errors, including:

• Unreported Income: Failure to declare taxable income from any source.
• Incorrect or Omitted Tax Returns: Incomplete or inaccurate filings for past tax years.
• Failure to Disclose GST/HST or Payroll Deductions: Unreported sales tax or employer source deductions.
• Foreign Income & Offshore Assets: Non-disclosure of income earned outside Canada.

However, the VDP does not cover certain cases, such as:

• Previously assessed tax debts or ongoing CRA audits.
• Bankruptcy-related tax filings.
• Rollover provisions and certain tax elections.

For detailed eligibility requirements, refer to the CRA VDP Eligibility Guide.

Types of VDP Applications: General vs. Limited Program

The CRA evaluates each VDP application under one of two programs:

1. General Program:

• Provides full penalty relief and partial interest relief.
• Offers protection from criminal prosecution.

2. Limited Program:

• Applies to cases involving intentional tax non-compliance.
• Reduces gross negligence penalties but does not eliminate all interest charges.

How KR Law Firm Assists with the VDP Process

1. Initial Assessment & Strategy

• Determining eligibility and the best approach for disclosure.
• Analyzing past tax records and calculating potential liabilities.
• Ensuring your application meets CRA’s voluntary, complete, and truthful disclosure criteria.

2. Application Preparation & Submission

• Compiling required documentation and drafting legal submissions.
• Ensuring all reported income, taxes owed, and corrections comply with tax laws.
• Submitting the application and liaising with CRA officials.

3. Advocacy & Negotiation with CRA

• Handling all communication with the CRA on your behalf.
• Negotiating favorable terms under the applicable VDP program.
• Challenging unreasonable tax adjustments if necessary.

Post-VDP Compliance & Future Tax Planning

After a successful VDP application, we provide continued support to:

• Ensure compliance with CRA regulations to prevent future issues.
• Advise on tax planning strategies to minimize liabilities.
• Implement proactive measures to strengthen tax reporting practices.

Why Choose KR Law Firm for Your VDP Application?

• Experienced Tax Representation: Knowledgeable legal professionals handling complex disclosures.
• Strong Negotiation & Legal Protection: Maximizing penalty relief and safeguarding your rights.
• Confidential & Secure Process: Protecting your financial and legal interests.
• End-to-End Support: From initial consultation to CRA resolution.

Correct Past Tax Mistakes Today – Contact Us

If you have undisclosed income or past tax errors, taking action now can help you avoid severe penalties. Book Your FREE consultation with KR Law Firm to discuss your Voluntary Disclosures Program (VDP) options.