An application for Taxpayer Relief or under the Voluntary Disclosures Program must be prepared carefully. The CRA has discretionary power over whether or not to grant the relief sought. Should the CRA refuse, the judiciary has limited jurisdiction to intervene.
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Voluntary Disclosures & Taxpayer Relief Applications
Applications under the Voluntary Disclosures Program (VDP) or for Taxpayer Relief must be prepared with care and precision. The Canada Revenue Agency and Revenu Québec have broad discretionary authority to grant or refuse relief, and once a decision is made, the courts have limited power to intervene. A strategic, well-documented application is therefore critical to success.
Voluntary Disclosures Program (VDP)
The Voluntary Disclosures Program provides taxpayers with a valuable opportunity to proactively correct past non-compliance and bring their tax affairs back into good standing.
If you have:
- made errors in prior tax filings;
- failed to file required forms (such as Form T1135); or
- omitted income from your returns;
the VDP may allow you to correct these issues while avoiding or significantly reducing penalties and prosecution—provided all eligibility requirements are met.
Timing is crucial. A VDP application will only be accepted if no enforcement action has taken place.
We assist clients in assessing eligibility, developing a disclosure strategy, and preparing comprehensive applications that clearly demonstrate compliance with the program’s requirements.
Taxpayer Relief
The CRA and Revenu Quebec may grant full or partial relief in appropriate circumstances, including:
- waiving the requirement to file specific forms, receipts, or supporting documents;
- extending deadlines for filing returns;
- cancelling or waiving penalties and interest;
- extending the time to make an election, or permitting an election to be amended or revoked;
- waiving taxes arising from RRSP or TFSA overcontributions;
- allowing refunds beyond the standard three-year limitation period; and
- reassessing taxes beyond the normal reassessment period, where beneficial to the taxpayer.
These powers are entirely discretionary and relief is granted on a case-by-case basis only where the applicable guidelines are clearly met. Poorly prepared or unsupported applications are frequently denied.
We work closely with clients to build compelling, well-structured relief requests that address the CRA and Revenu Quebec’s criteria and anticipate potential concerns.
Get Strategic Advice Early
Whether you are considering a voluntary disclosure or seeking taxpayer relief, early advice can make a decisive difference.
Contact us to schedule a consultation and obtain a strategic assessment of your situation.