How to Keep Your Canadian Business Fully Compliant with CRA in 2026

What CRA Compliance Actually Means for a Canadian Business

“CRA compliance” is frequently used as a shorthand for filing taxes on time. In practice, it is far broader — encompassing every obligation a business has to the Canada Revenue Agency across multiple tax regimes, information reporting requirements, and record-keeping standards.

A Canadian business is CRA-compliant when it:

• Files every required return accurately and on time
• Pays every amount owing by the required deadline
• Maintains books and records adequate to support every position taken
• Reports all income, transactions, and foreign interests that the ITA and ETA require
• Responds promptly and accurately to CRA inquiries, reviews, and audits

Falling short on any one of these dimensions creates exposure — not just to penalties and interest, but to expanded audit scope, personal director liability, and in serious cases, criminal prosecution for tax evasion.

For businesses operating in regulated sectors — money service businesses, payment service providers, fintech companies — the stakes are heightened by the visibility that FINTRAC registration and transaction reporting creates. An MSB that generates significant FINTRAC transaction reports while reporting modest income on its T2 is creating a visible discrepancy between two regulatory footprints that CRA can and does exploit.

This guide provides a comprehensive, actionable framework for maintaining full CRA compliance in 2026 — across corporate tax, GST/HST, payroll, information returns, and record-keeping — with specific guidance for regulated financial businesses.

The Five Pillars of CRA Compliance

Full CRA compliance for a Canadian corporation rests on five distinct pillars, each with its own obligations, deadlines, and consequences for failure:

Pillar	Core Obligations	Primary CRA Risk if Missed
Corporate Tax	T2 filing, tax payment, instalments	Late filing penalty, arrears interest, reassessment
GST/HST	Registration, filing, remittance, ITCs	Retroactive assessment, interest, gross negligence penalty
Payroll	Source deductions, remittance, T4 filing	Personal director liability, escalating penalties
Information Returns	T1134, T1135, T106, T4, T5	Per-day penalties regardless of tax owing
Record-Keeping	Books, records, source documents	Arbitrary assessments, loss of ITC claims, expanded audit

Each pillar must be managed independently — weakness in one does not excuse failures in another, and CRA audits frequently examine multiple pillars simultaneously once contact is initiated.

Pillar 1: Corporate Tax Compliance

The T2 Return: Filing and Payment

Every incorporated Canadian business must file a T2 Corporation Income Tax Return annually — regardless of whether taxable income was earned. The filing deadline is six months after fiscal year-end. The tax payment deadline is two months after fiscal year-end for most corporations, or three months for eligible CCPCs claiming the Small Business Deduction with taxable capital under $10 million.

These are independent deadlines. Filing on time does not excuse late payment, and payment on time does not excuse late filing. Interest accrues from the payment deadline at the prescribed rate plus 4%, compounded daily.

Keeping the T2 Accurate

Filing on time is necessary but not sufficient. The T2 must accurately reflect:

• All sources of revenue — including foreign exchange gains, cryptocurrency proceeds, investment income, and related-party receipts
• All deductible expenses — properly characterised as capital or current, with adequate documentation
• The correct characterisation of income as active business income or investment income
• Correct application of the Small Business Deduction, if applicable
• All required schedules — including Schedule 1 (reconciliation), Schedule 50 (shareholders), Schedule 100 (balance sheet), Schedule 125 (income statement)

For businesses with international structures, additional schedules (Schedule 91 for non-resident shareholders, Schedule 97 for non-resident corporations) and information returns (T1134, T1135, T106) must be filed contemporaneously.

Instalment Payments

Once net taxes payable exceed $3,000 in the current or either of the two preceding years, quarterly instalment payments are required on the last day of each quarter. CRA does not send reminders — the obligation arises by law. Instalment shortfalls attract interest at the prescribed rate plus 4%, compounded daily from each due date.

The prior year method — paying one quarter of the prior year’s tax liability each quarter — eliminates instalment interest risk where payments match the required amounts.

Capital Gains Inclusion Rate: Legislative Watch

The federal government proposed increasing the capital gains inclusion rate from one-half to two-thirds for corporations, effective June 25, 2024. As of early 2026, this measure has not been enacted into law — it was deferred in January 2025. The legislative status remains uncertain. Businesses should monitor CRA and Department of Finance announcements and obtain CPA advice before filing returns that would be affected by this change.

Pillar 2: GST/HST Compliance

Registration: Know Your Obligation

GST/HST registration is mandatory once taxable supplies exceed $30,000 in a single quarter or over four consecutive quarters. Exempt supplies — including most core financial services provided by MSBs — do not count toward this threshold. Each legal entity has its own $30,000 threshold; it is not aggregated across associated corporations.

A business that crosses the threshold and fails to register is retroactively liable for all GST/HST that should have been collected and remitted from the date registration was required — plus interest and penalties.

Correct Classification of Supplies

Every supply your business makes must be classified as:

• Taxable (subject to GST/HST at the applicable rate)
• Zero-rated (taxable at 0%; ITCs available)
• Exempt (not subject to GST/HST; no ITCs on related inputs)

For businesses providing financial services, each revenue line requires independent analysis under the two-step test in the Excise Tax Act. Applying the exempt classification to an entire fee bundle without analysis is one of the most common — and most expensive — GST/HST errors.

ITC Claims: Accurate and Documented

ITCs must be:

• Claimed within the applicable limitation period (four years for most businesses; potentially two years for listed financial institutions)
• Supported by adequate documentation (GST/HST registration number on invoices over $30)
• Apportioned correctly where the business makes both taxable and exempt supplies
• Claimed in the period in which the expense was incurred — not accumulated and claimed in a future period

Filing and Remittance on Schedule

GST/HST returns must be filed and net tax remitted on the required frequency — monthly (over $6M taxable supplies), quarterly ($1.5M–$6M), or annually (under $1.5M). Late filing where net tax is owing attracts a penalty of 1% of the balance owing plus 0.25% per month, up to 12 months — plus daily compound interest.

For a detailed guide to GST/HST compliance for Canadian businesses, see our article on GST/HST in Canada: registration, filing and common mistakes.

Pillar 3: Payroll and Source Deduction Compliance

The Core Obligations

Every business with employees must:

1. Register a CRA payroll account (RP) before the first payroll is run
2. Deduct CPP contributions, EI premiums, and income tax from each employee’s pay each period
3. Remit deductions plus the employer’s share of CPP and EI on the required schedule
4. File T4 slips and T4 Summary by the last day of February each year

Remittance Schedule Compliance

Remittance deadlines depend on your remitter category:

Category	Average Monthly Withholding	Deadline
New employer	Any amount	15th of following month
Regular	Under $25,000	15th of following month
Accelerated – Threshold 1	$25,000–$99,999	Within 3 days of bi-weekly period end
Accelerated – Threshold 2	$100,000+	Within 3 days of specific paydays

Penalties for late remittance are steep and escalate with lateness — 3% for 1–3 days, rising to 10% for more than 7 days or failure to remit, and 20% for a second failure in the same year where gross negligence is established.

Worker Classification: The Agent Risk

MSBs and fintech businesses using agent or contractor networks must ensure that worker classification is correctly determined and defensible. Misclassifying employees as independent contractors results in retroactive assessment for all unremitted source deductions — with interest from the original remittance deadlines and personal director liability under section 227.1 of the ITA.

Director Personal Liability

Directors of Canadian corporations are jointly and severally liable for unremitted source deductions. This liability survives corporate dissolution and applies for up to two years after a director ceases to hold office. The due diligence defence under s.227.1(3) requires active steps to prevent the default — passive unawareness is not sufficient.

Pillar 4: Information Return Compliance

The Most Commonly Missed CRA Obligation

Information returns are the CRA compliance category most frequently overlooked by Canadian businesses — particularly those with international structures. Unlike corporate tax or GST/HST, information return penalties apply regardless of whether any tax is owed. The obligation is purely to report — and the penalty for not reporting is automatic.

Key Information Returns and Their Deadlines

Return	Trigger	Deadline	Penalty
T4 / T4 Summary	Employment income paid	Last day of February	$25/day (min $100, max $2,500)
T5 / T5 Summary	Dividends paid to shareholders	Last day of February	$25/day (min $100, max $2,500)
T1134	Ownership of foreign affiliate	10 months after year-end	$25/day; gross negligence: 5% of affiliate share cost
T1135	Foreign property cost > $100,000	Same date as T2	$25/day; gross negligence: 5% of property cost
T106	Non-arm’s length non-resident transactions > $1M	Same date as T2	$25/day (min $100, max $2,500)

Building a Trigger Review Into Your Annual Process

Information return obligations are triggered by facts — ownership of a foreign affiliate, holding foreign bank accounts, paying dividends, employing staff. These facts change over time. Every year, before filing the T2, conduct a structured review of whether any new triggering facts have arisen:

• Did you acquire shares in any foreign company this year?
• Did the aggregate cost of your foreign property cross $100,000?
• Did intercompany transactions with non-resident related parties exceed $1 million?
• Did you pay dividends to any shareholders?
• Did you hire employees for the first time?

A qualified CPA should lead this annual trigger review — bookkeepers are generally not trained to identify information return obligations.

Pillar 5: Record-Keeping Compliance

The Legal Standard

Under sections 230 and 231 of the ITA and section 286 of the ETA, businesses must maintain adequate books and records to determine their tax obligations and to enable CRA to audit those obligations. The minimum retention period is six years from the end of the last tax year to which the records relate.

Records that must be maintained include:

• General ledger and trial balance
• Sales journals and all revenue documentation
• Purchase journals and all expense documentation with source documents
• Bank statements and reconciliations (all accounts, all currencies)
• Foreign currency transaction records with exchange rates at time of transaction
• Payroll records, TD1 forms, and ROE documentation
• Contracts, agreements, and corporate minute books
• All GST/HST records including ITC documentation

What “Adequate” Actually Means

CRA auditors assess adequacy not just by whether records exist but by whether they are organised, complete, and usable. A box of unsorted receipts is not adequate. A spreadsheet with manual entries and no audit trail is not adequate. Records stored only in a software system that cannot export or produce reports are not adequate.

The practical standard is: could an independent third party (a CRA auditor) reconstruct your tax position from your records without relying on your explanations? If not, your records are inadequate.

Multi-Currency Record-Keeping

For MSBs and multi-currency businesses, records must capture:

• The original currency of each transaction
• The CAD equivalent at the exchange rate on the transaction date
• The source of the exchange rate used (e.g., Bank of Canada daily rate)
• Running balances in each foreign currency

Without these elements, it is impossible to accurately report foreign exchange gains and losses on the T2 — and CRA will apply arbitrary assessments where records cannot support a specific position.

Cryptocurrency Record-Keeping

Every cryptocurrency transaction must be documented, including:

• Date and type of transaction
• Type and quantity of cryptocurrency
• Fair market value in CAD at the time of the transaction
• Counterparty information (where known)
• Adjusted cost base calculation for each coin type

At the transaction volumes typical of a Canadian crypto exchange or virtual currency dealer, manual record-keeping is not viable. Automated transaction tracking integrated with accounting software is essential.

Building a CRA Compliance Calendar

The most effective tool for maintaining CRA compliance is a structured, year-round compliance calendar that treats every obligation as a fixed, non-negotiable date. The following framework applies to a Canadian corporation with a December 31 fiscal year-end:

Q1 (January – March)

• By February 28: T4 slips distributed to employees; T4/T4 Summary filed with CRA
• By February 28: T5 slips distributed; T5/T5 Summary filed with CRA
• By February 28: Relevé 1 filed with Revenu Québec (if Quebec employees)
• By February 28 (most corps) / March 31 (eligible CCPCs): Corporate tax payment due
• By March 31: First corporate tax instalment (if applicable)
• By March 31: GST/HST annual return due (annual filers)
• By April 30: GST/HST Q1 return due (quarterly filers)
• Ongoing: Monthly GST/HST return and remittance (monthly filers)
• Ongoing: Payroll remittances per assigned schedule

Q2 (April – June)

• By June 30: T2 Corporation Income Tax Return filed
• By June 30: T1135 Foreign Income Verification Statement filed
• By June 30: T106 Transfer Pricing Information Return filed
• By June 30: Second corporate tax instalment (if applicable)
• By July 31: GST/HST Q2 return due (quarterly filers)

Q3 (July – September)

• By September 30: Third corporate tax instalment (if applicable)
• By October 31: GST/HST Q3 return due (quarterly filers)
• CRA instalment check: Are Q3 payments tracking to the correct annual amount?

Q4 (October – December)

• By October 31: T1134 Foreign Affiliate Information Return filed
• By December 31: Fourth corporate tax instalment (if applicable)
• By January 31 (following year): GST/HST Q4 return due (quarterly filers)
• Year-end preparation: Begin bookkeeping close-out; assemble financial statement working papers; confirm all foreign holdings for T1134/T1135 assessment

CRA Audit Risk Management

Understanding CRA’s Audit Selection

CRA does not audit every Canadian business. It selects files for review through a combination of:

• Risk-scoring models — algorithmic analysis of filed returns against industry benchmarks, prior year trends, and cross-reference data
• Sector-specific audit programs — targeted review of specific industries, including financial services, underground economy participants, and cryptocurrency businesses
• Third-party information — FINTRAC transaction data, banking information, international data exchange under OECD’s Common Reporting Standard (CRS) and FATCA
• Random selection — some files are selected without a specific risk flag

Reducing Audit Risk: Practical Steps

1. File accurately and on time. Late or inaccurate filings create visible flags in CRA’s system. A history of late filings and amended returns is a reliable audit trigger.

2. Reconcile your FINTRAC footprint to your CRA returns. For MSBs and virtual currency dealers, significant discrepancies between transaction volumes reported to FINTRAC and income reported on the T2 are a documented audit trigger. These two regulatory footprints should be consistent.

3. Maintain documentation before you need it. Build the audit file contemporaneously — transaction records, rate sources, intercompany agreements, ITC documentation — not in response to a CRA demand.

4. Respond to CRA correspondence promptly. Ignoring a CRA letter — even a routine enquiry — accelerates the process and converts a desk review into a field audit.

5. Report foreign assets and affiliates. T1135 and T1134 non-filers are a known CRA focus area. CRA participates in international data sharing under the CRS and has access to offshore banking information through foreign tax authorities. Non-disclosure of foreign assets is increasingly detectable.

6. Avoid lifestyle inconsistency. Where a business owner’s reported income is inconsistent with observable lifestyle indicators — travel, real estate, vehicles — CRA’s net worth audit stream is triggered. This is particularly relevant for owner-operators of cash-handling businesses.

What to Do If CRA Contacts You

Types of CRA Contact

CRA contact ranges from routine to serious:

• Matching correspondence — CRA’s systems identify a discrepancy between information on your return and information from a third party (T4 slip, T5, bank data). These are usually resolved quickly with a brief response.
• Desk review / request for information — CRA requests specific documents or explanations, typically in writing. Not a full audit but can escalate into one.
• Proposal letter — CRA proposes specific reassessments based on its review of your file. You have the right to respond before the reassessment is issued.
• Notice of reassessment — CRA issues a revised tax assessment. Under section 165(1) of the ITA, you have until the later of: (a) 90 days from the date the notice of reassessment was mailed, or (b) one year after the filing deadline for the return that was assessed. For a December 31 year-end, a reassessment mailed shortly after the June 30 filing deadline gives the taxpayer until June 30 of the following year — substantially longer than 90 days from the mailing date. Always calculate both deadlines and use the later one.

After filing a Notice of Objection: CRA’s Appeals Division reviews the file and either confirms, varies, or vacates the reassessment. CRA does not have a statutory deadline to respond to an objection, but a taxpayer may appeal directly to the Tax Court of Canada if CRA has not responded within 90 days of filing the objection, or at any time once CRA has confirmed or varied the assessment. Where CRA issues its Appeals decision, the Tax Court appeal must be filed within 90 days of that decision — missing this deadline forfeits the right to appeal to the Tax Court. Tax Court proceedings are formal litigation — legal representation is strongly advised.

• Field audit — A CRA auditor visits your premises or requests a meeting to review books, records, and operations in depth.
• Requirement for information (s.231.2 ITA) — A formal legal demand for documents or information.

The Right Response Protocol

Step 1: Do not ignore it. Any CRA correspondence requires a response. Silence is interpreted as non-cooperation and accelerates escalation.

Step 2: Engage a CPA immediately. Do not respond to a CRA desk review, proposal letter, or audit notice without qualified tax professional support. The initial response frames the entire engagement — a poorly handled first response can significantly increase audit scope and cost.

Step 3: Do not volunteer information beyond what is requested. Respond to the specific question asked — clearly, accurately, and completely. Do not proactively expand the scope by raising additional issues or providing unrequested documentation.

Step 4: Preserve all records. From the moment CRA makes contact about a specific issue, do not destroy, delete, or alter any records relating to that issue.

Step 5: File a Notice of Objection if reassessed. You have until the later of 90 days from the mailing of the notice of reassessment or one year after the filing deadline for the assessed return to file a Notice of Objection with the CRA’s Appeals Division. CRA’s collection of the disputed amount is generally restricted while a valid objection or appeal is pending under s.225.1 of the ITA — though CRA retains authority to take collection action in certain circumstances, including where there is concern about dissipation of assets.

The Voluntary Disclosures Program: Coming Clean Before CRA Does

When VDP Is the Right Move

The CRA’s Voluntary Disclosures Program (VDP) allows businesses to come into compliance for past errors — unfiled returns, unreported income, missed information returns, incorrect tax positions — before CRA initiates contact. Eligibility requires:

• The disclosure is voluntary — CRA has not yet contacted you about the specific issue
• The disclosure is complete — all relevant facts are disclosed accurately
• The disclosure creates a penalty exposure under the ITA or ETA
• The filing or reporting deadline has passed

Once CRA contacts you about an issue, VDP eligibility for that specific matter is lost.

What VDP Provides

General Programme disclosures:

• Standard late filing and failure-to-report penalties are waived
• Protection from criminal prosecution for disclosed matters
• Partial interest relief — interest is generally payable for the three most recent years only

Limited Programme (for major omissions or repeated non-compliance):

• Penalty relief and prosecution protection still apply
• No interest relief — all arrears interest must be paid in full

VDP Most Relevant for MSBs

Common MSB scenarios where VDP is appropriate:

• Unreported foreign exchange gains from prior years
• Missing T1135 filings for offshore bank accounts
• Unreported cryptocurrency income
• Missing T1134 filings for foreign affiliates
• Underreported income from any source where CRA has not yet made contact

A VDP application must be prepared by a qualified CPA with VDP experience. An incomplete or strategically selective disclosure can result in the application being denied and CRA treating the matter as a non-voluntary disclosure — forfeiting all VDP relief.

When VDP Is No Longer Available: Taxpayer Relief

Where CRA has already initiated contact — making VDP ineligible — Taxpayer Relief provisions under section 220(3.1) of the ITA (and the parallel section 281.1 of the ETA for GST/HST penalties and interest) offer a separate pathway to reduce penalties and interest. CRA has discretion to waive or cancel penalties and interest in circumstances of financial hardship, serious illness, natural disaster, or CRA processing error. A formal application using Form RC4288 is required, with supporting documentation. Taxpayer relief does not apply to the underlying tax owing — only to the associated penalties and interest.

CRA Compliance for MSBs: Specific Considerations

MSBs operating in Canada face a specific set of CRA compliance risks beyond those of a standard Canadian corporation. Key areas requiring dedicated attention:

Foreign Exchange Gain Reporting

Every foreign exchange transaction generates a taxable gain or loss on income account. MSBs must maintain transaction-level records with CAD equivalents at the time of each trade, and report net exchange income accurately on the T2. This is the single most common source of CRA reassessments in the MSB sector.

Cryptocurrency Income

The CRA treats cryptocurrency as a commodity. For FINTRAC-registered virtual currency dealers, all gains are on income account — fully taxable as business income. Every disposition, including crypto-to-crypto swaps, is a taxable event. Automated ACB tracking integrated with the T2 preparation process is essential.

GST/HST Supply Classification

MSBs providing a mix of exempt financial services and ancillary technology or platform services must conduct a fee-by-fee supply classification under the ETA’s two-step test. The entire fee bundle cannot be treated as exempt without analysis. For a detailed MSB-specific analysis, see our guide on Canadian MSB tax obligations.

T1134 and T1135 Information Returns

MSBs with international ownership structures, offshore holding companies, or foreign bank accounts must file T1134 and/or T1135 annually. These are among the most commonly missed obligations in the sector — and their penalties apply regardless of whether any tax is owed.

FINTRAC-CRA Data Intersection

FINTRAC is authorised to disclose designated financial intelligence to CRA under section 55 of the PCMLTFA. MSBs that generate significant FINTRAC-reportable transactions should ensure their tax returns are consistent with their FINTRAC transaction history. Discrepancies between these two data sets are a documented CRA audit trigger.

For a comprehensive guide to MSB tax compliance, see our article on accounting and tax compliance for MSBs in Canada.

Provincial Tax Compliance: Beyond Federal CRA

CRA compliance is federal. But Canadian corporations also have provincial tax obligations that operate in parallel — and in some provinces, independently of CRA:

Provincial Corporate Income Tax

Most provinces administer corporate income tax through CRA via the combined federal-provincial T2 return. Exceptions:

• Quebec — provincial corporate income tax (CO-17 return) administered by Revenu Québec separately from CRA
• Alberta — Alberta Corporate Tax Return (AT1) filed with Alberta Tax and Revenue Administration (TRA) separately from CRA

Quebec QST

Businesses with Quebec operations must register for QST with Revenu Québec separately from federal GST/HST, file QST returns on Revenu Québec’s schedule, and maintain separate QST records. The QST rate is 9.975%, applied on the GST-inclusive price, giving a combined effective burden of approximately 15.47% on the pre-GST price.

Quebec Payroll

Businesses with Quebec employees must register separately with Revenu Québec for provincial payroll deductions — including the Quebec Parental Insurance Plan (QPIP) and provincial income tax withholding — and file Relevé 1 slips in addition to federal T4 slips.

BC PST and Manitoba RST

British Columbia and Manitoba impose provincial sales taxes (PST and RST respectively) separately from federal GST. Financial services are generally exempt from these provincial taxes, but digital services and certain platform-based offerings may attract PST or RST exposure that MSBs should assess.

How ComplyFactor Helps

ComplyFactor provides integrated CRA compliance management for MSBs, PSPs, and regulated financial businesses — covering every pillar described in this article under one engagement.

Our CRA compliance services include:

Corporate Tax:

• T2 preparation and filing with all required schedules
• Tax payment and instalment scheduling
• Capital gains and income characterisation analysis
• CRA audit representation and objection filing

GST/HST:

• Registration assessment and ongoing filing
• Supply classification and ITC apportionment
• QST compliance with Revenu Québec

Payroll:

• Remittance scheduling and T4 preparation
• Worker classification reviews
• Quebec payroll and Relevé 1 preparation

Information Returns:

• T1134, T1135, T106, T4, T5 — annual trigger review and filing

Record-Keeping:

• Multi-currency bookkeeping system setup
• Crypto transaction tracking integration
• Six-year retention policy implementation

CRA Risk Management:

• Annual compliance health check
• Voluntary Disclosures Program assessment and applications
• Taxpayer relief applications

Visit our Canada tax compliance and financial statements page and our Canada PSP and MSB regulatory framework page for more detail.

Contact ComplyFactor to build a complete CRA compliance framework for your business.

FAQ

What does full CRA compliance require for a Canadian corporation? Full CRA compliance requires: filing an accurate T2 on time, paying taxes by the payment deadline, making quarterly instalment payments where required, filing and remitting GST/HST on schedule, remitting payroll source deductions on time, filing all required information returns (T4, T5, T1134, T1135, T106), and maintaining adequate records for six years.

How does CRA select businesses for audit? Through a combination of risk-scoring algorithms, sector-specific audit programs, third-party information (FINTRAC data, banking information, CRS international data exchange), and random selection. Filing accurately and on time reduces — but does not eliminate — audit risk.

What is the personal liability risk for directors of Canadian corporations? Directors are personally liable for unremitted CPP contributions, EI premiums, and income tax withholdings (s.227.1 ITA) and unremitted GST/HST (s.323 ETA). This liability survives corporate dissolution and applies for up to two years after ceasing to be a director. The due diligence defence requires active steps to prevent the default.

If CRA contacts me, what should I do first? Engage a qualified CPA before responding. Do not respond to a CRA audit notice or proposal letter without professional support — the initial response frames the entire audit engagement.

What is the difference between a CRA audit and a Notice of Objection? A CRA audit is CRA’s review of your tax position. A Notice of Objection is your formal appeal against a reassessment issued by CRA — you have 90 days from the date of the reassessment to file it. Filing an objection suspends collection action on the disputed amount.

How long must I keep my business records? A minimum of six years from the end of the last tax year to which the records relate. This covers the standard CRA reassessment window and is the minimum required under both the ITA and ETA.

Can I voluntarily correct past tax errors without being penalised? Yes — through the CRA Voluntary Disclosures Program, provided CRA has not yet contacted you about the specific issue. A valid VDP application waives standard penalties and provides prosecution protection, though taxes owing and some interest must still be paid.

Related Articles:

• Accounting and Tax Compliance for MSBs in Canada
• Canadian MSB Tax Obligations: Corporate Tax, GST/HST and Reporting
• Common Tax Mistakes Canadian MSBs Make
• Canada Corporate Tax Deadlines and Penalties 2026
• GST/HST in Canada Explained
• Financial Statement Preparation in Canada
• MSB Compliance vs Tax Compliance in Canada
• Setting Up an MSB in Canada
• How to Apply for a FINTRAC MSB License
• Canada MSB License: Complete Guide
• RPAA Compliance Guide for Canadian PSPs
• Canada 2025 Assessment of ML/TF Risks
• How to Get Banking for Your Canadian MSB or PSP