LEGAL COUNSELNEAR ME
Tax Planning

What should you do about undeclared income or missing tax filings?

Coming forward voluntarily is almost always better than being found. The Voluntary Disclosures Program can provide relief from penalties and, in some cases, prosecution — but only if the disclosure is genuinely voluntary, meaning made before the CRA contacts you about the issue. Once an audit letter arrives, that door generally closes.

What to do next

  1. Get advice before contacting the CRA

    Speak to a tax lawyer first. Legal privilege applies to a lawyer's advice in a way it does not to an accountant's working papers, which matters if the exposure could become criminal.

  2. Establish whether the disclosure is still voluntary

    The programme requires that you come forward before enforcement action relating to the issue. If a letter has already arrived, the analysis changes and different strategy applies.

  3. Quantify the full exposure across all years and authorities

    Federal and, for Quebec residents, provincial. Foreign accounts and assets carry separate reporting obligations with their own substantial penalties, which are often the larger problem.

  4. File complete and accurate disclosure

    Partial or misleading disclosure defeats the relief and worsens your position. The point of the programme is completeness.

Frequently asked questions

Will I be prosecuted?

A properly accepted voluntary disclosure can provide relief from prosecution as well as penalties. That protection depends on coming forward first, which is why timing is everything.

Should I use my accountant or a lawyer?

Start with a tax lawyer. Solicitor-client privilege protects the advice; an accountant's file generally is not privileged and can be compelled.

What about foreign accounts?

Foreign asset and income reporting carries its own penalties, often larger than the tax itself. Include everything in the disclosure.

How many years back?

Disclosure is expected to cover all affected years. Establish the full scope before filing anything.

This is general information, not legal advice. Laws vary by location and every situation is different — speak with a qualified lawyer about your specific circumstances.

Dealing with this situation?

Tell us what happened and we will help you identify the type of lawyer who handles it.

By submitting, you agree to be contacted about your inquiry. This is not legal advice and does not create a lawyer–client relationship.

Top rated

Tax Planning Firms Ready to Help

Independently verified — featured placements appear first.

Tax Planning & Tax Appeals counsel in Montréal

Montreal, Quebec
  • Tax Planning
  • Tax Appeals
  • Tax Law
  • Corporate Tax
  • Sales Tax
  • Payroll Tax
  • Cryptocurrency Tax

Civil, commercial and estate litigation in Vancouver

Vancouver, British Columbia
  • Appeals
  • Arbitration & Dispute Resolution
  • Boundary Disputes
  • Business Formation
  • Business Law
  • Business Torts
  • Capital Markets & Securities
  • Civil Litigation
  • Commercial Leasing
  • Commercial Litigation
  • Commercial Real Estate
  • Competition & Antitrust
  • Construction Law
  • Contract Disputes
  • Corporate Governance
  • Corporate Law
  • Data Privacy & Cybersecurity
  • Debt Collection
  • Director & Officer Liability
  • Employment Law
  • Environmental Law
  • Estate Litigation
  • Estate Planning
  • Franchise Law
  • Guardianship
  • Insolvency & Restructuring
  • Insurance Law
  • Intellectual Property
  • Joint Ventures
  • Mediation
  • Mergers & Acquisitions
  • Partnership Disputes
  • Partnerships
  • Power of Attorney
  • Professional Negligence
  • Property Development
  • Real Estate
  • Regulatory Compliance
  • Residential Real Estate
  • Securities Litigation
  • Shareholder Agreements
  • Shareholder Disputes
  • Tax Planning
  • Title Disputes
  • Trusts
  • Wills

Go deeper

Guides, Forums & Where This Is Decided

Background reading and the bodies that hear tax planning matters.

Related guides