Overview

Ontario’s voluntary disclosure policy lets individuals, businesses or their representatives correct inaccurate, incomplete or unreported information. The intent of this policy is to encourage voluntary compliance.

To qualify, you must contact us before any enforcement action begins.

Who this policy is for

You can use this policy if you are:

  • an individual
  • a business
  • an authorized representative acting on behalf of a client

You can make a voluntary disclosure if you need to correct:

  • unreported or underreported tax
  • errors in previous returns
  • missed filings
  • other issues related to inaccurate or unreported information under a statute administered by the Ministry of Finance

What relief may be given

If a valid voluntary disclosure is made, the ministry will not prosecute; however, all amounts owing, including interest, must still be paid.

Ontario’s tax laws include civil penalties, fines, and jail terms for individuals, businesses, vendors, registrants and benefit recipients who do not meet their legal obligations.

In most cases, the maximum penalty is a fine of up to twice the amount of tax evaded and up to 2 years in jail. Convicted taxpayers must also pay all unreported taxes, plus civil penalties and interest.

Statutes covered by the policy

Voluntary disclosure applies to the following statutes administered by the Ministry of Finance:

  • Corporations Tax Act
  • Community Small Business Investment Funds Act
  • Electricity Act (only specific provisions)
  • Employer Health Tax Act
  • Estate Administration Tax Act, 1998
  • Fuel Tax Act
  • Gasoline Tax Act
  • Income Tax Act (Ontario)
  • Land Transfer Tax Act
  • Mining Tax Act
  • Ontario Guaranteed Annual Income Act
  • Provincial Land Tax Act
  • Race Tracks Tax Act
  • Retail Sales Tax Act
  • Tobacco Tax Act

If you have federal or other provincial tax obligations, we encourage you to consider making a voluntary disclosure in those jurisdictions as well.

Voluntary disclosure policy

To qualify, your disclosure must meet all the following conditions as determined by the ministry:

1. Your disclosure must be voluntary

Your disclosure must be initiated by you, the business or its representative. It is not considered voluntary if the ministry has already taken enforcement action.

Enforcement action means any action taken by the ministry to find or resolve instances of non-compliance. The voluntary disclosure process is not to be used as a means of avoiding late filing penalties on the current tax return. Contacting the ministry for information or education, or attending a ministry event like a webinar, is not considered enforcement action by the ministry.

If enforcement has started, the voluntary disclosure policy does not apply.

If you are unsure whether you want to make a voluntary disclosure, you can speak anonymously with a ministry representative. After your discussion, you may receive a 90-day grace period to prepare and submit your disclosure.

2. Your disclosure must be complete

You must provide full and accurate information with your disclosure, including:

  • all facts related to the disclosure
  • any submissions, calculations, schedules or other relevant information

Note: Any costs related to submissions, calculations, schedules or other relevant information are your responsibility.

Minor errors or omissions will not disqualify the disclosure, but major errors and omissions may result in penalties and prosecution.

3. The ministry will verify the validity of your disclosure

The ministry will determine whether the disclosure is:

  • voluntary
  • complete
  • accurate

You must:

  • provide all books of account, records and documents upon request
  • answer all questions truthfully
  • cooperate fully during the review process

If you do not cooperate fully, you may lose protection under this policy.

4. You must pay all amounts owing plus interest

You must pay the total amount due, including interest, when you make a disclosure.

Where the whole amount owing cannot be paid immediately, the ministry may consider a reasonable payment arrangement.

Voluntary Disclosure Report

You may complete a Voluntary Disclosure Report to accompany the supporting documentation for your disclosure.

Download the Voluntary Disclosure Report

Make a voluntary disclosure

Please contact us as soon as possible to discuss your situation.

If you are unsure whether you want to make a voluntary disclosure, you can speak anonymously with a ministry representative. After your discussion, you may receive a 90-day grace period to prepare and submit your disclosure.

You can make a voluntary disclosure by contacting the Ministry of Finance: