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1. Change My Return
2. ReFILE
3. T1-ADJ1
4. Voluntary Disclosure Program
What is the difference between the above 4. When to use which?
Is T1-ADJ1 always done offline, where you fill up the forms and mail it to them? Or do you do it online via Netfile or via upload the documents on My Account.
I was told never send T1-ADJ forms electronically to CRA. Always mail them in.
Isn't Change My Return and ReFILE basically the same thing? If you want to make changes or fix errors between your return?
I claimed Ontario Trillium Benefits, GST/HST credit and Carbon Rebates, when I shouldn't have for the past 4-5 years. So do I use Change My Return, ReFILE, VDP or T1-ADJ to pay it back?
Also to report missing Form T1135 from previous returns which of the above 4 methods should you use? Is VDP the best option to prevent $ 2,500 penalty per year?
Voluntary Disclosure Program - Do you have to submit and pay the estimated taxes & penalties, before you can use the VDP? So if the estimated taxes are $ 50,000. You have to first pay 50K before using VDP??
Dear Janis,
Thank you for reaching out with your detailed questions. Below is an overview of the four methods you mentioned and when each one is applicable:
- Change My Return – This is an online option available through CRA’s My Account for making simple adjustments to previously filed returns. It’s generally the easiest way to correct errors if the return was processed by the CRA.
- ReFILE – Used for making changes to a return originally filed electronically via NETFILE or EFILE. It is similar to Change My Return but is primarily used by individuals or tax professionals filing through certified software.
- T1-ADJ (T1 Adjustment Request) – A manual form used when an online adjustment isn’t possible. While Change My Return is the preferred method for online changes, T1-ADJ is still an option if electronic changes are not allowed for a particular tax year or issue. The form can be mailed or uploaded via My Account (contrary to some advice you may have received).
- Voluntary Disclosure Program (VDP) – Used when correcting significant errors or omissions, particularly to avoid potential penalties. If you incorrectly claimed benefits (such as Ontario Trillium, GST/HST credits, and Carbon Rebates) for multiple years, VDP may be the safest approach. It can also help in reporting a missing T1135 (Foreign Income Verification Statement) to reduce or eliminate penalties.
How to Correct Your Situation:
- For incorrect benefit claims (Ontario Trillium, GST/HST credit, Carbon Rebates): If it was an honest mistake, you may be able to use Change My Return or a T1-ADJ to repay the amounts. However, since this spans multiple years, VDP may be advisable to mitigate penalties, especially if CRA hasn’t contacted you yet.
- For missing T1135 forms: VDP is often the best option, as failing to report foreign assets can trigger penalties of up to $2,500 per year. Filing under VDP may help you avoid these penalties.
Does VDP Require Full Payment Upfront?
- You do not need to pay estimated taxes and penalties before submitting a VDP application. However, to qualify for relief, you must include a reasonable estimate of the taxes owed and demonstrate a willingness to pay. If you owe a significant amount (e.g., $50,000), CRA may allow you to make a payment arrangement.