Mistakes in tax returns happen—whether it’s overstating claims, hiding income, or simple errors. What starts small can quickly grow into a bigger issue. Fortunately, the Inland Revenue Department (IRD) allows voluntary disclosures, helping reduce penalties and often avoiding prosecution. The key is acting fast and getting the right assistance.
Why Make a Voluntary Disclosure?
You might choose to disclose for several reasons:
- To correct past mistakes and get a fresh start.
- After receiving a letter from the IRD—it’s not too late at this stage.
- To avoid pressure from someone aware of your tax issues, like an ex-spouse or business partner.
How It Works:
The IRD requires:
A clear explanation of the errors and their causes.
Disclosure of all affected taxpayers.
Enough details for the IRD to assess the situation.
Ideally, a calculation of the revised tax position.
Handling everything upfront prevents further investigation, and a full and honest disclosure from a respected firm ensures you get the best outcome.
Benefits of Voluntary Disclosure:
Timing matters:
Before an investigation: A 75% penalty reduction, often avoiding prosecution. Minor shortfalls may qualify for a 100% reduction.
After notification but before the investigation starts: A 40% penalty reduction, with negotiation options.
Need Help? We’re Here for You.
If you’re worried about past tax mistakes, we can help guide you through a voluntary disclosure. Acting now can save you stress, money, and legal trouble. Contact us today to get started!