Missed foreign income reporting from 2021-2024

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Hi Allan, I missed reporting approx 3000 cad each year total foreign interest, dividends and capital gains for 2021-2024. I first became a canadian resident in october 2021. I will now be filing a departure tax return in 2025. My foreign holdings below 100k threshold for 2021-2024. I was thinking of filing T1 adjustments for the 4 years wherein my total tax owing plus Interest (assuming worse case rates) is coming to approx CAD 3200 instead of a VDP. what would you recommend pls. I have not gotten any notice or education letter yet. The below are the breakdown of the missed income for each year in CAD

Dividend Capital Gain Interest Total
2021 99.94952 2,393.82 34.70 2,863.21
2022 616.60332 1,612.57 100 2,329.17
2023 472.04085 3,040.80 100 3,612.84
2024 532.147775 1926.07 100 2,558.21

Thank you very much in advance

1 Answer

score 0 · Answer 1 · 2026-02-10T18:18:05+00:00

Hi Rohith,

Based on the facts you’ve outlined, filing T1 adjustments (T1-ADJ) for 2021–2024 is the more appropriate and proportionate approach, rather than using the Voluntary Disclosures Program (VDP).

Key considerations:

The unreported foreign income amounts are relatively modest.
Your foreign holdings were below the $100,000 threshold, so no T1135 exposure.
You became a Canadian tax resident only in October 2021 (part-year residency).
There has been no CRA contact to date.
You are proactively correcting the filings before your 2025 departure return.

In practice, voluntarily amending the prior-year returns, paying the resulting tax and interest, and including a brief explanatory letter is usually sufficient in cases like this. VDP would generally be considered excessive here and may add unnecessary cost and delay without meaningful additional protection.

Missed foreign income reporting from 2021-2024

1 Answer

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