5 BULLET FRIDAYS - Tax Mechanic News, Tips & Strategies

Welcome to Tax Mechanic Insights! 📬

CRA Updates to the Voluntary Disclosures Program – Effective October 1, 2025

The Canada Revenue Agency (CRA) will implement significant reforms to the Voluntary Disclosures Program (VDP) on October 1, 2025. These changes are intended to make the program more accessible, less restrictive, and more transparent for taxpayers seeking to correct unintentional errors or omissions.

The VDP continues to offer individuals and businesses the opportunity to voluntarily address past non-compliance before enforcement action, with the potential for meaningful relief from penalties and interest.

Key Changes at a Glance

Key Highlights of the New Rules

1. Simplified Application Process
   Redesigned Form RC199 for clarity and efficiency, reducing paperwork and delays.

2. Increased Eligibility
   Taxpayers who receive “educational letters” remain eligible. Exclusions still apply to audits, investigations, or egregious non-compliance.

3. Two Relief Tiers

   • General Relief (unprompted applications): 75% interest relief, full penalty relief.

   • Partial Relief (prompted applications): 25% interest relief, up to full penalty relief.

4. Clearer Documentation Rules

   • Foreign income/assets: 10 years

   • Canadian income/assets: 6 years

   • GST/HST: 4 years
     Years without errors do not need to be filed unless specifically requested.

Timing Considerations

The distinction between general and partial relief is significant. Applications submitted before the CRA initiates contact will generally qualify for broader relief, making early disclosure the most advantageous course of action.

Source: Canada Revenue Agency – Changes to the Voluntary Disclosures Program

$30B Founder: How to Rank #1 in ChatGPT

Episode 745 of the podcast features Dharmesh Shah (co-founder of HubSpot, valued at $30B) in conversation with Sam Parr and Shaan Puri. The discussion explores the evolution of search—from the early days of SEO to the emerging discipline of AEO (Answer Engine Optimization)—and how businesses can position themselves to surface in ChatGPT responses.

Key Insights at a Glance

Dharmesh’s Playbook

1. 0 → 1 Framework: Practical lessons on building from scratch.

2. ChatGPT as a Tool: How he integrates AI into his personal workflow.

3. The Sport of Business: Why entrepreneurship is an endurance game, not a sprint.

Source: My First Million Podcast, Episode 745. Watch on YouTube

Mortgage Options for the Self-Employed

Being your own boss should not be a barrier to homeownership. As the lending market evolves, more financing solutions are emerging to address the unique needs of self-employed buyers. Today, lenders recognize entrepreneurial income as both legitimate and sustainable, leading to a broader set of mortgage opportunities.

Key Options Available

A Streamlined Qualification Process

The application framework for self-employed individuals has become more flexible. By considering the realities of entrepreneurial income streams, lenders now offer pathways that balance accessibility with prudent underwriting.

This shift signals a broader recognition: self-employment is not an obstacle, but a credible and often lucrative career path.

Closing Perspective

For independent professionals, the message is clear: homeownership is well within reach. With financing tools designed for self-employed buyers, the journey to acquiring a property is no longer defined by barriers, but by tailored opportunities.

Contact Genelle Today

Genelle George – Mortgage Agent, Next Level Mortgage
📞 416-854-7697
✉️ [email protected]

🔒 The most favorable terms are secured by those who move early.

Extension of the Taxpayers’ Ombudsperson Appointment

Ottawa, September 16, 2025 – The Honourable François-Philippe Champagne, Minister of Finance and National Revenue, has announced the extension of Mr. François Boileau’s mandate as Canada’s Taxpayers’ Ombudsperson. His tenure, originally set to end in 2025, will now continue until October 4, 2027.

Key Highlights

The Role of the Ombudsperson

The Office of the Taxpayers’ Ombudsperson (OTO) was created in 2008 to strengthen the CRA’s accountability and service culture. It ensures that the service rights outlined in the Taxpayer Bill of Rights are upheld and provides an independent review mechanism for taxpayer complaints.

By extending Mr. Boileau’s term, the Government of Canada reinforces its commitment to fairness, transparency, and continuous improvement in the taxpayer experience.

Quick Facts

• Mr. Boileau is the third Taxpayers’ Ombudsperson since the role was established.

• The OTO examines and reviews complaints where taxpayers believe their service rights were not respected.

• Taxpayers are encouraged to use CRA’s redress mechanisms before contacting the OTO.

Source: Government of Canada – Canada Revenue Agency News Release

Featured TikTok: CRA’s Voluntary Disclosures Program Gets a 2025 Makeover

In our latest TikTok video, we break down the upcoming changes to the CRA’s Voluntary Disclosures Program (VDP), effective October 1, 2025—and why they could mean thousands in potential savings for taxpayers.

@taxmechanic

Big changes are coming to the CRA’s Voluntary Disclosures Program starting October 1, 2025. If you’ve made past tax mistakes, this update ... See more

Key takeaways from the video:

• Simplified Process: A redesigned application form reduces paperwork and frustration.

• Expanded Eligibility: Even taxpayers who receive CRA “educational letters” can still apply—only those under audit or with serious fraud are excluded.

• Two Levels of Relief:

  • Unprompted disclosure: 100% penalty relief + 75% interest relief.

  • Prompted disclosure: 100% penalty relief + 25% interest relief.

• Clearer Documentation Rules: 10 years for foreign income, 6 years for Canadian income, 4 years for GST/HST—only for periods with errors.

The message is clear: early disclosure matters. Acting before CRA intervention ensures access to the most generous relief.

📹 Watch the full TikTok to see how these changes could impact you.