Can You Withdraw or Amend a Voluntary Disclosure in Canada?

You filed Form RC199, and then you found something else: another unreported account, a missed year, a number that was wrong. You now wonder whether you can fix the application, pull it back, or whether you have damaged your position.

The CRA's published rules say much more about how to apply than about changing an application afterward. This article explains what is clear, what depends on your facts, and how to avoid making the situation worse.

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

Why completeness matters so much

A valid application must be voluntary and complete, with all supporting documents. The application package is the signed RC199, all returns, forms and schedules needed to correct the non-compliance, and payment or a payment arrangement request.

The VDP says it will consider fully completed applications only. That is why discovering new items after filing is serious: the disclosure may no longer be complete.

The CRA may also audit any information in a VDP application whether or not relief is granted, and if fraud or misrepresentation is found, an assessment may cover any year.

What the published rules do and do not tell you

The CRA describes the stages as submission, acknowledgement with the effective date of disclosure (EDD), review for eligibility with possible requests for more information, and a written decision. Requests for more information are part of the process.

A formal procedure for amending or withdrawing an application that is already in the queue is not something to assume. Whether you can supplement it, how that affects the EDD, or whether you should withdraw is a question for a lawyer or accountant who can look at your file.

After receiving an application the CRA sends an acknowledgement letter with the EDD, and relief runs up to the EDD if the applicant qualifies. The decision letter states the application type (unprompted or prompted), the relief level and the eligible tax years, and if relief is denied it gives the reason.

You can use the CRA's callback form to check the status of an application. That may help you learn which stage your file is at before you decide what to do.

Different situations after filing

Do not confuse a conversation with an application

If you are unsure about applying, the CRA allows preliminary discussions on an anonymous basis. These are informal and non-binding, and can be requested through the CRA's online callback form.

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

If a representative filed for you, both you and the representative must sign the application, and the name of any adviser who helped must be included.

What to do next

• Stop and list exactly what is new: the item, the tax year and the amount.
• Keep your RC199, acknowledgement letter and proof of how you submitted. Use one submission method only.
• Do not file a second, overlapping application without advice.
• Gather the records for the new items now, so that you are ready if the CRA asks.
• Speak with a tax lawyer or accountant before contacting the CRA about changes, since timing can affect voluntariness and relief.

Payment of the estimated tax owing, or a request for a payment arrangement, is a condition of a valid application, and approval of a payment arrangement is not guaranteed. If you disagree with a decision, you can ask in writing for a second administrative review before applying for judicial review.

Frequently asked questions