Can I Make an Anonymous Pre-Disclosure Inquiry to the CRA in Canada?

You may be worried about a tax problem and want to ask the CRA how a disclosure would work without giving your name. That is a common and reasonable concern.

The CRA does allow a limited kind of anonymous conversation. This article explains what it is, what it cannot do for you, and how it differs from an actual Voluntary Disclosures Program (VDP) application.

This article covers Canadian federal tax law, which applies in every province.

What the CRA allows

A person who is unsure about applying may hold preliminary discussions with the CRA on an anonymous basis. These discussions are informal and non-binding.

You can request one through the CRA's online callback form. Because the discussion is informal, treat it as a way to understand the process, not as a ruling on your own situation.

What an anonymous discussion does not do

An anonymous discussion is not an application. Relief requires a signed Form RC199 with full documents and payment, and an effective date of disclosure is only assigned once the CRA acknowledges the application.

That matters because relief runs up to the effective date of disclosure if you qualify. A phone call, however early, does not start that date.

• It does not give you penalty or interest relief.
• It does not give you protection from prosecution; that protection is for eligible applicants for the disclosed information.
• It does not set an effective date of disclosure.
• It does not replace a complete application.

Questions worth settling before you call

Some points decide whether a disclosure is possible at all, so think them through first.

• Has an audit or investigation started against you or a related taxpayer for the information? If so, the disclosure is not voluntary, and this includes investigations by law enforcement, securities commissions or other regulators, not just the CRA.
• Has the CRA already contacted you about this issue? That affects whether the application is unprompted or prompted.
• Does the matter involve interest, penalties or both, and information at least one year past the filing due date?
• Can you pay the estimated tax, or would you ask for a payment arrangement?

The answers affect the relief level. Unprompted applications normally receive 100% relief of penalties and 75% relief of interest, while prompted applications normally receive up to 100% relief of penalties and 25% relief of interest.

What a real application requires

The application package is the completed, signed Form RC199, all returns, forms and schedules needed to correct the non-compliance, and payment or a request for a payment arrangement for the estimated tax owing. The VDP says it will consider fully completed applications only.

You can file through My Account, My Business Account or Represent a Client, or by fax or mail. If a representative submits for you, both you and the representative must sign, and the name of any adviser who helped must be included. Using a representative from the start can be a practical way to keep your questions organized, but confirm the details with a lawyer or accountant.

What to do next

• List the years and the type of error or omission involved.
• Check whether you have received any CRA letter or notice about it.
• Gather your records; income tax applications generally cover the most recent six years, or ten years for assets or income located outside Canada.
• Decide whether to use the callback form for an informal discussion.
• Speak with a lawyer or accountant about whether and how to file.

Remember that the CRA reserves the right to audit any information in an application. Preparing carefully before you file is more useful than relying on an informal call.

Frequently asked questions