What is voluntary disclosure?
Voluntary disclosure is a procedure that allows taxpayers who concealed income or assets from the tax authorities to correct their reporting and pay the missing tax. In return, the Tax Authority undertakes not to take criminal proceedings against the taxpayer.
When is it worth turning to voluntary disclosure?
There are several reasons to turn to voluntary disclosure:
Receiving new information about income or assets that were not reported in the past.
Concern about a tax audit or criminal investigation.
Wish to settle tax debts and achieve peace of mind.
Wish to avoid fines and punitive damages.
What are the advantages of voluntary disclosure?
The main advantages of voluntary disclosure are:
Avoiding criminal proceedings, including indictment, conviction and even imprisonment.
Reduction of fines and punitive damages.
Payment of the missing tax on favourable terms.
Obtaining certainty regarding tax liabilities.
Improving relations with the tax authorities.
What are the stages of the voluntary disclosure procedure?
The voluntary disclosure procedure consists of several main stages:
Seeking legal advice: It is advisable to turn to a lawyer specializing in tax to examine the viability of the procedure and formulate an appropriate strategy.
Preparation of disclosure material: The lawyer will prepare disclosure material including all relevant information on the unreported income or assets.
Submitting the voluntary disclosure application: The application will be submitted to the Tax Authority and will include the disclosure material and the taxpayer's payment proposal.
Discussions with the Tax Authority: After submitting the application, discussions will be held between the lawyer and the Tax Authority to reach an agreement on payment terms.
Payment of tax: After approval of the agreement, the taxpayer will pay the missing tax on the terms set in the agreement.
Important to note: Voluntary disclosure is a complex and sensitive procedure, and it is important to turn to a lawyer specializing in tax to ensure the procedure is managed correctly and efficiently.
In addition, this information does not constitute legal advice and it is advisable to consult a qualified lawyer before taking any steps.