Tax Audit  - Voluntary Disclosure

Reduce Shortfall Penalties and Avoid Prosecution

Voluntary disclosure process is a method we used to reduce their shortfall penalties and in many cases avoid the risk of prosecution at the very early stage of the audit. We recommend some of our clients to make a voluntary disclosure to their tax affairs because this will be an ideal option to reduce audit shortfall penalties. Thus, a voluntary disclosure must be made accurately and meet IRD requirements.

If a voluntary disclosure is successfully made before the notification of an audit, the penalty could be reduced by 100% where the shortfall penalty is for not taking reasonable care, for taking an unacceptable tax position or for an unacceptable interpretation. For all other cases the penalty is reduced by 75%. However, if this process is not done it properly, IRD can decline the voluntary disclosure and client could be lost the opportunity of reducing shortfall penalties and even in risk of being prosecuted.

We understand voluntary disclosure requirements and will make submit the application for you. We will also assist you with your audit process and negotiate the debt with the IRD on the best terms possible.