CRA Voluntary Disclosure and Penalty & Interest Relief
Unfiled returns or CRA penalties piling up? Sansar Solutions prepares CRA Voluntary Disclosures Program applications and penalty and interest waiver requests.
If you have unfiled or incorrect returns, the CRA offers two main routes to reduce what you pay: the Voluntary Disclosures Program (VDP), for coming forward before the CRA contacts you, and taxpayer relief, for asking the CRA to cancel or waive penalties and interest already charged. Sansar Solutions prepares both as part of our all-inclusive flat rate, with no separate VDP fee, along with the catch-up bookkeeping and returns that support them.
Which option fits your situation?
| Voluntary Disclosures Program (VDP) | Taxpayer relief (penalty & interest waiver) | |
|---|---|---|
| When | Before the CRA has started enforcement on the issue | After penalties or interest have been charged |
| Purpose | Correct unfiled or inaccurate income tax or GST/HST returns voluntarily | Ask the CRA to cancel or waive penalties and/or interest |
| Typical grounds | You're coming forward voluntarily, with full disclosure | Circumstances beyond your control, financial hardship, or CRA error or delay |
| Form | [PLACEHOLDER: current CRA VDP form number] |
RC4288, Request for Taxpayer Relief |
| Time limit | Must be made before the CRA contacts you about the issue | Generally the 10 calendar years before the year of the request |
Summary of CRA programs. Eligibility depends on your facts, and the VDP rules were updated in 2025. [PLACEHOLDER: add canada.ca source links]
What we do
- Assess which years and returns are missing or wrong, and whether the CRA has already contacted you.
- Recommend the route: VDP, taxpayer relief, or simply filing late.
- Rebuild the books for each affected year. See catch-up bookkeeping.
- Prepare the returns (T2, T1/T2125, GST/HST/PST) and the VDP application or relief request with supporting documents.
- Submit and follow up with the CRA as your authorized representative.
FAQ
What is the CRA Voluntary Disclosures Program? The VDP lets taxpayers correct unfiled or inaccurate returns before the CRA takes enforcement action, in exchange for possible relief from penalties and part of the interest.
Can the CRA waive penalties and interest? Yes. Under the taxpayer relief provisions, the CRA can cancel or waive penalties and interest in qualifying situations, such as circumstances beyond your control, financial hardship, or CRA error. Requests are made on Form RC4288.
I already got a demand to file. Can I still use the VDP? Usually not for that issue, because the CRA has already started enforcement. Taxpayer relief may still be an option. See CRA letters.
Is relief guaranteed? No. The CRA decides each application. We prepare a complete, well-documented request to give you the best chance. The CRA's decision is outside our control, but our 100% Happiness Guarantee covers our work: if you're not happy, we'll keep working with you on the engagement until you're satisfied with the work we've done.
How much does it cost? VDP and penalty-relief work is included in Sansar's one all-inclusive flat rate. There's no separate VDP fee. Book a call with a Sansar rep for a custom quote.
How long does it take? We prepare your returns and application within 1 month once all documents are received. Multi-year catch-ups typically take 1–2 months. Client delays and bank or CRA delays can extend this. After submission, the CRA's decision takes as long as the CRA takes, and that part is outside our control.
Based in Vancouver, serving businesses across Canada, mostly in Ontario, Alberta and British Columbia.
Stop the penalties from growing. Book a free call or call (778) 652-2874. Sansar Solutions, 545-1199 West Pender St, Vancouver BC.