How Long Does a CRA Voluntary Disclosure Take in Canada?

Once you have filed a voluntary disclosure, the waiting can be stressful. You have admitted a problem to the CRA and want to know when it will be settled and what happens to your account in the meantime.

The honest answer is that the CRA does not give a fixed timeline. What you can know are the stages your application moves through, what can slow it down, and how to check in.

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

Does the CRA publish a processing time?

No. The CRA does not publish a processing time for VDP applications. Any figure you read elsewhere is an estimate, not an official commitment, and your own file may move faster or slower depending on its complexity and whether the CRA needs more information.

The stages of an application

The CRA describes the process as a series of stages:

• Submission of your application.
• Acknowledgement, with the effective date of disclosure (EDD).
• Review for eligibility, which may include requests for more information.
• A written decision.

The acknowledgement letter gives the effective date of disclosure, and relief runs up to that date if you qualify. An anonymous discussion before filing does not start this process. An EDD is only assigned once the CRA acknowledges a signed application.

The decision letter states the application type (unprompted or prompted), the relief level and the eligible tax years. If relief is denied, the letter gives the reason.

What can speed up or slow down a file

You cannot control the CRA's workload, but you can avoid delays of your own making. The VDP will consider fully completed applications only. The CRA may deny an application as incomplete if requested information or documents are not provided within a reasonable timeframe, or for insufficient information or other non-compliance.

• Include the signed Form RC199, all needed returns, forms and schedules, and supporting documents.
• Include payment of the estimated tax owing, or a request for a payment arrangement. This is a condition of a valid application.
• Answer any CRA request for more information promptly.
• If a representative files for you, make sure both signatures are on the form and authorization is in place.

If you cannot pay in full and ask for a payment arrangement, approval is not guaranteed and collections officials review each request.

Also keep in mind that the CRA reserves the right to audit any information in an application whether or not relief is granted. How quickly any later reassessment follows depends on the facts and is worth confirming with a lawyer or accountant.

After the decision

If you disagree with a VDP decision, you can ask in writing for a second administrative review by the Assistant Director of the Shawinigan National Verification and Collections Centre. The CRA asks applicants to do this before applying for judicial review.

Judicial review is in the Federal Court, using Form 301 Notice of Application. It generally must be filed within 30 days of the CRA's notification and follows the second review. There is no right of objection to a VDP decision. If you are not eligible, other options include the taxpayer relief provisions.

Because the 30-day period is short, speak with a lawyer promptly if you receive a decision you want to challenge.

What to do next

While you wait, keep a copy of everything you submitted, your proof of payment, and the acknowledgement letter. You can use the CRA's callback request form to check the status of your application or ask about a decision letter.

• Save your submission confirmation and the acknowledgement letter with its EDD.
• Keep copies of the RC199, returns and supporting documents.
• Watch for CRA requests for more information and reply quickly.
• Keep your current filings and payments up to date.
• Use the callback form if you need a status update.
• Note the date on any decision letter, so you can act within 30 days if needed.

Frequently asked questions