Guide to CRA Form RC199: Making Voluntary Tax Payments

Managing your tax obligations in Canada can sometimes require making payments outside the normal filing cycle. Whether you need to make a voluntary payment to reduce a balance owing, pay an amount related to a specific tax program, or simply want to make an advance payment, the CRA provides mechanisms for this. This guide explains how voluntary tax payments work, the role of Form RC199, and practical advice for newcomers navigating the Canadian tax system.

Understanding Voluntary Tax Payments

Quick tip: download the official RC199 first, then fill it while following this guide: Download RC199 form (official CRA).

A voluntary tax payment is any payment you make to the CRA that isn't specifically required by a notice of assessment, reassessment, or installment reminder at that moment. People make voluntary payments for several reasons:

• To reduce or eliminate an anticipated tax balance before filing
• To stop interest from accumulating on a known tax debt
• To make advance payments against next year's tax liability
• To pay an amount related to a specific CRA program or account
• To correct an underpayment from a previous period

For newcomers who may have complex tax situations—such as foreign income, self-employment income, or transitional year residency—making voluntary payments can help you avoid surprises at tax time and minimize interest charges.

What Is Form RC199?

Form RC199, officially known as the "Voluntary Disclosures Program (VDP) Taxpayer Agreement," is actually part of the CRA's Voluntary Disclosures Program. It's important to distinguish between voluntary payments (simply paying money to the CRA) and the Voluntary Disclosures Program (a formal process for correcting errors or omissions in previous filings).

The VDP allows taxpayers to come forward and correct inaccurate or incomplete information, or to disclose information they previously failed to report, without facing the full penalties that would normally apply. Form RC199 is the agreement form used when your VDP application is accepted.

For information on the VDP, visit the CRA Voluntary Disclosures Program page.

The Voluntary Disclosures Program Explained

The VDP is designed for taxpayers who want to correct their tax affairs. A valid disclosure must meet four conditions:

1. Voluntary: The disclosure must be made before the CRA initiates any audit or enforcement action related to the information
2. Complete: You must provide all relevant information, including all years and amounts involved
3. Involve a penalty: The information being disclosed, if discovered by the CRA, would result in a penalty
4. Include information at least one year overdue: The disclosure must relate to information that should have been reported at least one year ago

Two Tracks of the VDP

The CRA operates the VDP under two tracks:

• General Track: For taxpayers who unintentionally failed to comply. Benefits include penalty relief and partial interest relief (interest is charged from the date the taxes were due but penalties are waived).
• Limited Track: For cases involving intentional non-compliance or cases referred by the CRA. Benefits are more limited—no gross negligence penalties, but other penalties and full interest may apply.

When Newcomers Might Need the VDP

As a newcomer to Canada, there are several situations where the VDP might be relevant:

• Unreported foreign income: If you earned income abroad that should have been reported on your Canadian tax return but wasn't
• Foreign property reporting: If you own foreign property worth more than CAD $100,000 and failed to file Form T1135 (Foreign Income Verification Statement)
• Unreported foreign bank accounts: Interest earned in foreign bank accounts must be reported, even if it seems insignificant
• Incorrect residency determination: If you filed as a non-resident when you should have been filing as a resident (or vice versa)
• Missing GST/HST filings: If you operated a business and didn't file required GST/HST returns

Making Simple Voluntary Payments (Without VDP)

If you simply want to make an additional payment to the CRA—not related to a voluntary disclosure—you don't need Form RC199. Here are your options for making a straightforward voluntary or advance payment:

See also: First-Year Tax Filing Guide

Online Banking

The easiest method is through your bank's bill payment service. Add the CRA as a payee and select the appropriate account type:

• "CRA - Tax Amount Owing" for individual income tax
• "CRA - Tax Instalments" for installment payments
• "CRA - GST/HST Payment" for GST/HST amounts

Use your SIN or Business Number as the account number. Payments are typically processed within 3-5 business days.

CRA My Payment

The CRA My Payment service allows immediate online payments using Visa Debit, Debit Mastercard, or Interac Online. Payments are processed immediately and will show on your CRA account within a few business days.

Pre-Authorized Debit

Through CRA My Account, you can set up a pre-authorized debit agreement to make automatic payments on specified dates. This is useful for managing installment payments or paying down a balance over time.

See also: CRA My Account Setup Guide

At a Canada Post Outlet

You can make payments in person at any Canada Post outlet using a QR code generated from CRA My Account. Payments up to $999.99 per day can be made in cash or with a debit card.

By Cheque

Mail a cheque payable to the Receiver General for Canada to your tax centre. Include your SIN and the tax year the payment relates to on the cheque. Allow adequate mailing time to ensure the payment arrives before any deadline.

How to Apply to the VDP

If you determine that a formal voluntary disclosure is appropriate for your situation, here's how to proceed:

Step 1: Prepare Your Disclosure

Gather all relevant information including:

• Tax years affected
• Types of income or information not previously reported
• Amounts involved
• Reasons for the non-compliance
• Supporting documentation

Step 2: Complete Form RC199

Download Form RC199 from the CRA forms page. The form requires you to provide details about the nature of your disclosure, the tax years involved, and your commitment to cooperate fully with the CRA.

Step 3: Submit Your Application

Send your completed Form RC199, along with amended tax returns and all supporting documentation, to the VDP intake centre. Include any payment you can make toward the estimated tax owing.

Step 4: CRA Review

The CRA will review your application and determine whether it meets the VDP conditions. This can take several months. During the review, the CRA may request additional information.

Step 5: Agreement and Payment

If accepted, you'll receive an outline of the terms, including the taxes owing, any interest, and the payment schedule. You must sign the agreement and make the required payments.

Tips for Newcomers

• Report all worldwide income: Canada taxes residents on their worldwide income. Even if you paid tax on income in another country, you must report it in Canada (and may claim a foreign tax credit to avoid double taxation).
• File T1135 if applicable: If you own specified foreign property totalling more than CAD $100,000 at any time during the year, you must file Form T1135. This includes foreign bank accounts, real estate (other than personal-use property), and investments.
• Don't ignore past errors: If you realize you made a mistake on a previous return, it's better to correct it proactively than to wait for the CRA to discover it.
• Seek professional help: VDP applications can be complex. Consider working with a tax professional who has experience with voluntary disclosures.
• Make payments early: Interest accumulates from the date taxes were due, so making payments as soon as possible reduces your total cost.

Additional Resources

• CRA - Voluntary Disclosures Program
• CRA - Form RC199
• CRA - Make a Payment
• CRA - Foreign Reporting Requirements

Whether you need to make a simple voluntary payment to reduce your tax balance or you're considering a formal voluntary disclosure to correct past errors, understanding your options is crucial. For newcomers with foreign assets, income from other countries, or complex tax histories, addressing these issues proactively through the proper channels helps you build a clean tax record in Canada and avoid costly penalties down the road.

Download This Form

Before you submit anything, download the latest official file here: Download RC199 form (official CRA). Always use the latest version.

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Official external resources

• Download RC199 form (official CRA)
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