Voluntary Disclosures to IRD

Do you want to come clean with the IRD about tax matters?

Paying tax is not likely to be your favourite pastime and you may cut corners or not fully disclose your true financial situation to the IRD. Often these are simply omitted income or expenses incorrectly claimed. These may seem trivial omissions at first but collectively can become a serious issue. Fortunately the IRD allows you to make a voluntary disclosure, which acknowledges your willingness to make amends and reduces penalties that you may have incurred should your indiscretions have been discovered.

Underpaid tax? Clear it up now

The longer you leave your under-paid tax undeclared, the more likely you are to be caught out and the less favorably the IRD will look on your case. Tax Debt Management can help you prepare your voluntary disclosure immediately, to make sure you fulfil all the IRD requirements. Remember, if you want Inland Revenue to reconsider penalty or prosecution your disclosure must be full and complete. We’ll also negotiate on your behalf.

Why should you make a voluntary disclosure?

Your voluntary tax disclosure may help if:

  • You suspect that an IRD audit is imminent as you have received a preliminary letter.
  • You are concerned that an associate (or partner) may use your tax indiscretion as leverage in their dealings with you.
  • The IRD will not prosecute if you later lose your case but have made a pre-notification voluntary disclosure.
  • You may simply want to clear the decks and make a fresh start with IRD.

Who can make a voluntary disclosure to IRD?

Anyone can make a voluntary disclosure including salary or wage earners, individuals, businesses, trusts and employers.

Will a voluntary disclosure dodge ALL penalties?

Not necessarily, but possibly. If you make a voluntary disclosure before you are notified of an impending IRD audit then penalties are reduced dependent on whether you are considered to:

  • be guilty of gross carelessness or tax evasion
  • have not taken reasonable care
  • have taken an unacceptable tax position
  • have unacceptably misinterpreted the tax regulations.

If your tax underpayments are considered insignificant the you will not receive penalties; if you make your voluntary disclosure prior to notification of an IRD investigation.

If your disclosure is made after you have been notified of an audit but before it gets underway then you may qualify for a 40% penalty reduction of penalties and we can still negotiate for non prosecution.

Contact Tax Debt Management now and let’s clear up your tax problems.

We service the whole of New Zealand

CALL NOW 0800 829 277

Email info@taxdebtmanagement.co.nz