Voluntary Disclosure for Unreported Crypto Gains in Canada

You traded or earned crypto in past years and never reported it. Now you want to fix that before the CRA finds it. The Voluntary Disclosure Program, or VDP, is the CRA's process for people in that position.

This article explains how the VDP works, what relief you may get and what the CRA expects in the application. How crypto is taxed in your situation depends on the facts, so an accountant or lawyer should confirm how to calculate it.

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

Can the VDP be used for unreported crypto?

The VDP lets a taxpayer come forward to correct errors or omissions, such as unreported income or unfiled returns. The CRA lists not reporting or under-reporting income, and not filing a return that is now a year late, among the situations that may be eligible.

Whether a particular crypto gain or income is taxable, and how it should be reported, depends on your facts. That calculation is worth confirming with a tax professional before you file.

The current rules apply to applications received on or after October 1, 2025. Earlier applications fall under the older circular.

What relief can you expect?

If the CRA accepts your application, it may give penalty and interest relief and will not refer the disclosed matter for criminal prosecution. The VDP provides relief on penalties and interest, not on the tax itself, so the tax owing must be paid.

These are the normal levels. Relief is limited by the ten-calendar-year window in subsection 220(3.1) of the Income Tax Act, so older years may get reduced or no relief. An application is generally unprompted if the CRA has not communicated with you about the issue, or if the only contact was a general education letter. It is generally prompted if it follows CRA communication identifying a specific error or setting a correction deadline, or follows third-party information about your non-compliance.

Conditions you must meet

• The application must be voluntary and complete, with all supporting documents.
• It must involve interest, penalties or both.
• It must include information at least one year past the filing due date.
• It must include payment of the estimated tax owing or a request for a payment arrangement.

A disclosure is not voluntary if an audit or investigation has been started against you or a related taxpayer for the disclosed information. This includes investigations by law enforcement, securities commissions or other regulators, not just the CRA. A CRA letter about a specific issue does not by itself end eligibility; if you are not under audit or investigation, it is treated as a prompted application.

What the CRA expects to see

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

You must include supporting documents for the affected years. Records generally cover the most recent six years, or ten years for assets or income located outside Canada. Years with no errors or omissions need not be included. How this applies if your records are incomplete depends on your situation, so it is worth confirming with a lawyer.

You can file through My Account, My Business Account or Represent a Client, or by fax or mail, and you should use one submission method only.

What to do next

• Check whether the CRA has already contacted you about crypto or started an audit.
• Gather exchange statements, wallet records and bank records for every affected year.
• Have an accountant or lawyer work out the amounts and prepare the corrected returns.
• Arrange payment of the estimated tax, or request a payment arrangement, which is not guaranteed.
• Submit one complete application by a single method.

If you are unsure, you may hold preliminary discussions with the CRA on an anonymous basis. These are informal and non-binding. They are not an application, and the CRA assigns an effective date of disclosure only once it acknowledges your application. The CRA may still audit the information you provide.

Frequently asked questions