Voluntary disclosure beyond 10 years raises a simple question: is it still worth it? Old unfiled returns, missed slips, and offshore income can feel like ancient history, but the timing still matters in voluntary disclosures, especially for relief from penalties and interest.
In this article, we will walk you through where the line is drawn for voluntary disclosures outside the 10-year window and what that means in practice. For fact-specific advice, organizations and individuals can consult Lexpert-ranked corporate tax lawyers across Canada.
What is the Voluntary Disclosure Program?
The Voluntary Disclosures Program (VDP) is a relief program by the Canada Revenue Agency (CRA), which lets taxpayers and registrants come forward to fix past errors or omissions in their tax filings. This program is administered on a case-by-case basis and is intended to encourage taxpayers to come forward before they are selected for an audit or investigation.
If a VDP application is accepted, the following general consequences apply:
- you must still pay the taxes you owe to the CRA, plus part of the interest out of the corrections
- in return, you may receive relief or protection from:
- penalties
- interest
- criminal prosecution
This program is meant to help taxpayers correct unintentional non-compliance, not to reward those who deliberately avoid paying their fair share over time.
We'll discuss the changes to the VDP effective 2025, and how to apply in this program. Here's a video from the CRA which briefly summarizes the VDP:
Learn more about the VDP, especially the effects of a voluntary disclosure beyond 10 years, by reaching out to the best corporate tax lawyers in Canada as ranked by Lexpert.
Changes to the Voluntary Disclosure Program: October 1, 2025
The CRA has announced changes to the VDP that took effect on October 1, 2025. These changes aim to make it easier for you to file your errors or omissions in your tax filings.
Application form & attachments
The CRA has updated Form RC199, which is used to apply under the VDP. Your application must also include the returns, forms, and schedules needed to correct the non-compliance.
CRA rules also show how older years can come into play. When non-compliance extends over multiple years, the following years must generally be included in your application:
- involving foreign-sourced income or assets: the most recent 10 years
- for Canadian-sourced income or assets: the most recent six years
- for GST/HST: the most recent four years
You do not need to include any years within those spans with no errors or omissions, but the CRA may ask for more documents for tax years or reporting periods beyond those timeframes if necessary.
Increased eligibility
The current VDP provides more leeway on who is included and excluded:
- if the CRA prompts you about a potential non-compliance: you may still be eligible for the program, whereas such contact previously often signalled the start of an investigation
- non-eligibility of certain taxpayers and registrants: the CRA says that it will continue to restrict those who are under an audit or investigation, and those who were egregiously non-compliant
New relief tiers
The CRA now recognizes two main relief tiers, called "general relief" and "partial relief," and a special "wash transactions" category for some GST/HST situations:
- general relief:
- applies to unprompted applications
- 75% relief of the applicable interest
- 100% relief of the applicable penalties
- partial relief:
- applies to prompted applications
- 25% relief of the applicable interest
- up to 100% relief of the applicable penalties
- wash transactions:
- for the GST/HST only
- 100% relief of the applicable penalties and interest
The relief granted will depend on the facts and the content of your application.
What happens for voluntary disclosures beyond 10 years?
Under the 10-year limitation rule, tax years (or fiscal periods) beyond the 10-year period in a voluntary disclosure are not eligible for consideration. It means that the CRA cannot provide relief when the request is for a tax year or fiscal period that ended more than 10 years before the calendar year when the request is made.
Cancelling penalties is limited to 10 years
Under the VDP, the CRA's power to cancel penalties is tied to a 10-year window under subsection 220(3.1) of the Income Tax Act (ITA). The CRA can only grant penalty relief for tax years that ended within the 10 calendar years before the year when the application is filed.
Further, interest relief is also limited. The CRA can cancel the interest that accrued only during the 10 calendar years before the year in which the request for relief is made, even if the original tax debt arose earlier.
Protection within the 10-year period
Whenever a VDP application qualifies for relief, the CRA provides the same supplemental protections, regardless of whether the application is treated as general, partial, or wash transaction relief. The following protections apply if an application is accepted and the years in question fall within the 10-year limitation:
- no criminal action will be filed: the CRA will not pursue criminal prosecution against you for the disclosed issues, no matter which relief tier is used
- no penalties will be imposed: similarly, gross negligence penalties will not be applied against you, regardless of the relief tier you're under
That protection is not described as being limited by the 10-year interest and penalty window, so it applies to all disclosed years covered by an accepted VDP application.
Effect of voluntary disclosures beyond 10 years
A voluntary disclosure can include non-compliance from older periods, but standard VDP penalty and interest relief will not extend indefinitely into the past. For years that fall outside the 10-year window:
- penalties will be applied: the CRA can still assess the taxes and interest under the law, and ordinary penalties for those older years may remain in place
- no relief is available: you cannot use the VDP because it is outside the 10-year limitation, and relief against gross negligence penalties and criminal prosecution is inapplicable
In practice, this structure creates three separate questions for any voluntary disclosure beyond 10 years:
- first, how far back does the non-compliance run, and should those older years still be corrected as part of a complete and honest disclosure
- second, which of those years fall within the 10-year period for penalty and interest relief, and which are not included
- third, what outcomes apply to each group of years, combining tax owing, ordinary interest, limited penalty and interest relief, and the program's protection
When these questions become complex, it is often best to have a corporate tax lawyer in your jurisdiction handle the disclosure. You can also watch this video to learn more about the VDP and its changes in 2025:
Bookmark our Legal FAQs page for more articles on Canadian laws that address common questions and scenarios.
How can lawyers help with voluntary disclosures beyond 10 years?
Corporate tax lawyers can assist with voluntary disclosures in many ways, whether or not the non-compliance extends beyond the 10-year window:
- Helping sort out how far back a disclosure should go: When your disclosure stretches beyond 10 years, a lawyer can help decide which years to include, how to explain older issues, and how to present payment options while staying within program rules
- Evaluating your eligibility under the VDP: Lawyers can also review the facts in detail, assess whether the case qualifies for the program, and flag any factors that might limit relief. They can also guide you through the CRA's pre-disclosure discussion service, which lets you talk with the CRA anonymously about your situation and the risks of staying non-compliant
- Assistance with the VDP process itself, like the application process: Your corporate tax lawyer can help prepare the Form RC199 package, with all required returns, forms, and schedules, using the right number of years for your case. When the CRA asks for more information, a lawyer can manage those requests
- Ensure you get the best relief under your application: If the CRA accepts your application, your lawyer can explain the mix of relief that you can get each year. If the CRA refuses giving you a relief, a lawyer can ask for a second administrative review and, if needed, help you apply to the court for a judicial review
Voluntary disclosure: Knowing when “too late” really starts
Voluntary disclosure beyond 10 years is not a magic reset button, since the CRA still expects full tax payment, and the 10-year limit shapes how much penalty and interest relief is on the table. Older years may still need to be corrected, even if standard relief cannot reach them.
For anyone sitting on old unfiled returns, or foreign income that never made it into a return, the main question is timing. The longer the delay, the tighter the relief window becomes. An early conversation with a corporate tax lawyer can help sort out which years still get VDP benefits, and which years call for a different plan.
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