What is the Voluntary Disclosures Program and how can I use it?

The Voluntary Disclosures Program (VDP) is a service offered by the Canada Revenue Agency (CRA) that allows taxpayers to come forward and correct any inaccurate or incomplete information on their tax returns or disclose any previously unreported income. By using the VDP, individuals or businesses can avoid penalties or prosecution that may otherwise result from non-compliance. To use the VDP, you must meet certain conditions, such as making a full and accurate disclosure, providing all necessary documentation, and paying the taxes owed. The program is mainly designed for those who want to correct errors or omissions voluntarily, rather than wait until the CRA discovers them. By utilizing the VDP, taxpayers can rectify their tax situation and ensure compliance with tax laws effectively while minimizing the potential consequences.