Crypto & the CRA Voluntary Disclosure Program
The Voluntary Disclosure Program is run by the CRA to allow Canadian taxpayers who filed their taxes inaccurately or did not file at all in previous years to fix that mistake or catch up. Using the VDP, Canadian taxpayers can avoid tax prosecution for inaccurate filings or unpaid taxes.
For many NFT and crypto investors who started trading without thinking about the tax implications, the disclosure program can help them get up-to-date on their taxes before facing the stress and consequences of a crypto tax audit or worse – a criminal tax prosecution.
Cryptocurrency Taxes & the CRA Voluntary Disclosure Program Scope
The CRA must have no prior knowledge of the tax issue you wish to resolve with the Voluntary Disclosure Program, and the information must be for tax years at least one year past due.
The Voluntary Disclosure Program now requires taxpayers to create an estimate of what they owe and pay that amount up front when they file their Voluntary Disclosure form.
How it Works
Canadian taxpayers must apply to the Voluntary Disclosure Program and have their application approved by the CRA. The CRA will also determine if you qualify for General Relief or LImited Relief.
When you have unpaid taxes owing to the CRA, you must pay interest charges and late penalties. If you inaccurately represented your income taxes or did not report crypto on your taxes, you can also face tax prosecution.