Voluntary tax disclosures

Our Experts Answer:

The Inland Revenue Department run a very favourable voluntary disclosure regime which is designed to give taxpayers an incentive to bring forward issues with their tax voluntarily, even in situations where tax has been evaded deliberately. Voluntary disclosures provide immunity from prosecution and automatic reductions in any shortfall penalty charges.

In your case it is likely that no short fall penalties would be issued. There is though the chance that some use of money interest could be added to the tax liability but in the scheme of things this is likely to be minimal.

To furnish a voluntary disclosure you must provide sufficient information to enable the inland revenue to raise an accurate assessment of the tax due. In my view, its also best to call and make an appointment to see an IRD officer face to face so that you can explain the circumstances around the disclosure.