> ## Content Index > Fetch the complete content index at: https://learn.sansarsolutions.com/llms.txt > Use this file to discover other available public pages before exploring further. # The CRA Voluntary Disclosures Program After the October 2025 Changes: Who Qualifies and What Relief You Get - URL: https://learn.sansarsolutions.com/cra-voluntary-disclosure-program-changes/ - Published: 2026-10-15T02:13:12.000Z - Updated: 2026-10-15T02:41:32.000Z - Description: How the CRA's updated VDP works for small businesses behind on filings: general vs partial relief, the five conditions, form RC199, and when it's too late. - Author: Gurdeep Sangha - Tags: CRA Problems **The Voluntary Disclosures Program lets a business or individual correct unfiled or wrong returns and get relief from penalties and part of the interest, as long as they come forward voluntarily and give complete information.** For applications received on or after October 1, 2025, the CRA offers *general relief* to unprompted applicants and *partial relief* to applicants who have had some CRA contact that doesn't yet amount to enforcement. ## What changed in October 2025? The CRA updated the program on October 1, 2025 ([canada.ca, changes to the VDP](https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/voluntary-disclosures-program/changes-vdp.html?ref=learn.sansarsolutions.com)). Under the current rules: | | General relief (unprompted) | Partial relief (prompted) | | --------------- | -------------------------------------------- | -------------------------------------------------------------- | | When it applies | The CRA hasn't contacted you about the issue | The CRA contacted you, but no audit or enforcement has started | | Penalty relief | 100% of applicable penalties | Up to 100% of applicable penalties | | Interest relief | 75% of applicable interest | 25% of applicable interest | Eligible disclosures also get protection from criminal prosecution on the disclosed issues. *Summarized from CRA guidance (IC00-1R7). Check the current payment and documentation requirements on canada.ca before applying.* ## What an application needs An application generally has to be voluntary (made before enforcement action on the issue) and complete, correcting all the errors for the years involved, and it's filed on **form RC199**. The CRA sets out the full conditions and payment expectations in IC00-1R7. ## Does VDP fit a business that's simply years behind? Often, yes. The classic case is a corporation that hasn't filed T2s or HST for three years because the business grew faster than the bookkeeping. If the CRA hasn't sent a demand to file yet, VDP can turn a stack of penalties into tax plus reduced interest. **Example (hypothetical):** A Calgary agency incorporated in 2021 and grew to about $1.8M revenue. It never filed a T2 or GST return. With no CRA letters received, the owner applies under VDP with all returns prepared. If accepted under general relief, the late-filing penalties are waived and most of the interest is relieved, leaving the tax and the remaining interest. ## When is it too late? Once the CRA starts an audit or enforcement on the same issue, VDP is generally off the table. A [demand to file](https://learn.sansarsolutions.com/missed-cra-demand-to-file-deadline/) or other CRA contact may move you from general to partial relief, or out of the program, depending on what it covers. The order you act in matters, so get advice before replying to the CRA. ## Is VDP the same as taxpayer relief? No. VDP is for coming forward before enforcement. Taxpayer relief asks the CRA to cancel penalties or interest that are already charged because of circumstances beyond your control. ## How Sansar handles VDP We rebuild the books, prepare every missing return, and prepare the RC199\. VDP work is **included in our all-inclusive flat rate**, with no separate fee, and backed by our 100% Happiness Guarantee. Details are on our [VDP and penalty relief page](https://learn.sansarsolutions.com/voluntary-disclosure-penalty-relief/) and the main-site [late business tax filing service](https://sansarsolutions.com/late-business-tax-filing/?ref=learn.sansarsolutions.com). If your old accountant is the reason you're behind, read what to do when your accountant stops responding. [**Book a confidential call →**](https://sansarsolutions.com/contact/?ref=learn.sansarsolutions.com) · [How onboarding works and what documents we need →](https://learn.sansarsolutions.com/how-onboarding-works/) You can also check our main-site guide to [filing back taxes for a business](https://sansarsolutions.com/taxes/how-to-file-back-taxes-for-business/?ref=learn.sansarsolutions.com). ## FAQ **Can a corporation use the VDP for unfiled T2 and GST returns?** Yes. Businesses can disclose unfiled or inaccurate income tax and GST/HST returns, as long as the program's conditions are met. **Do I have to pay the tax up front to apply?** Generally you should pay the estimated tax owing or discuss a payment arrangement. Check IC00-1R7 for the current requirements. **What if the CRA already sent me a letter?** You may only qualify for partial relief, or not at all if enforcement has started. Get the letter reviewed before you respond. **Is a VDP application anonymous?** There's a pre-disclosure discussion service you can use without naming yourself, but the application itself identifies the taxpayer. **How far back does VDP relief go?** Relief is generally limited to the past 10 calendar years. Older years may still have to be filed. --- *Written by *Gurdeep Sangha*, founder of* [*Sansar Solutions*](https://sansarsolutions.com/about/?ref=learn.sansarsolutions.com)*, a Vancouver-based bookkeeping and tax firm serving small businesses across Canada (mainly Ontario, Alberta and BC). Sansar is not a CPA firm; Notice to Reader and review engagements go through partner CPAs. This guide is general information, not tax or legal advice for your situation. Last reviewed: October 2026.*