Hello, Does anyone have experience with the Voluntary Disclosure Program? My specific question is in regard to the T1135. For some reason, the T1135 didn’t send for a client last year and I didn’t notice it (Not taxcycle, btw, I switched this year). My questions are: Has anyone used the VDP for the T1135 and, since it won’t be a year until the end of April, do I need to wait until May 1st to file it?
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I filed some T1135s for a client using the VDP a couple of years ago. And yes you have to wait until the filing is sufficiently late before you can apply under the VDP.
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Thanks for that. Another question; If a T1135 hasn’t been filed before, I think the US property has been owned for 10 years or so, would you ask for relief just for three years or ask for six (I believe CRA has the right to go back an additional 3 years). In this case, all the foreign income was reported, but t1135 not filed
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I would file a T1135 for every year that it would have been required. Don’t rely on the normal reassessment period. There was a recent case (Azmayeh-Fard v R, 2025 TCC 20) where CRA assessed a taxpayer for 16 years of undeclared income and unfiled T1135s, by applying ITA 152(4)(a)(i) “neglect, carelessness or wilful default” to the taxpayer, and the court upheld it.
Even though that case involved unreported income as well, so the taxpayer was certainly more careless or neglectful than yours, I see zero reason not to file every missing T1135 in order to protect the taxcpayer under the VDP as much as possible.
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When clients have ten years of missed T1135 filings, I’ve referred them to tax law firms to assist with the Voluntary Disclosures Program.
However, for clients who have missed T1135 filings for five years or fewer, many are reluctant to engage tax law firms due to the high legal fees. They often prefer to accept the penalties.
Are there any reputable tax firms or professionals who specialize in voluntary disclosure cases involving less complex situations—such as missing three or four years of T1135 filings with foreign assets under $250,000 —and who offer a more cost-effective solution than tax law firms?
Your best bet is probably to find a CPA with experience in the tax department of a national firm but who now operates at a smaller public practice. We’re probably rare but we do exist.
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Does that mean you may be able to help? You’re in New Brunswick, I believe?
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