Also known as the tax amnesty program, the Voluntary Disclosures Program allows taxpayers to rectify errors on their tax returns or report previously unreported amounts. Regardless of the reasons behind non-compliance, this program offers an opportunity and incentives to rectify tax reporting issues.
Changes were implemented in the program from March 1, 2018, introducing two tracks – the General and Limited programs. While the General Program offers full penalty relief, some interest relief, and protection from criminal prosecution, the Limited Program provides only limited relief. In addition, it applies to taxpayers with elements of intentional non-compliance.
In the Limited Program, financial relief is constrained, and taxpayers must waive certain rights for acceptance. These rights include the ability to object to the assessment resulting from the disclosure and the right to appeal to the Tax Court of Canada.