When you find out that you’ve made a mistake with a tax return, it’s essential that you act and inform the Inland Revenue Department (IRD) so that you avoid or mitigate any potential penalties. All taxpayers, individuals or businesses, are obligated to make a voluntary tax disclosure if they discover an error in their tax returns. If you’ve already received a tax audit notice, you can still make a voluntary disclosure, during the inspection of your records or in the initial interview stage. You can make a voluntary disclosure to the IRD in writing or by calling them.
What’s the Benefit of Making A Voluntary Disclosure?
By making a voluntary disclosure, you are showing the IRD that you are making an honest effort to get things right and that the discrepancies in your tax matters were unintentional. You may have left out income details from your tax returns, or mistakenly claimed expenses that you were not entitled to. Whatever the error, when you make a voluntary disclosure, the IRD will consider your honest actions.
In many cases, penalties on a tax shortfall can be reduced by 75% or even dropped altogether. So don’t make a problem worse by ignoring it. If you notice that something doesn’t add up in your tax returns, identify the problem and make a voluntary disclosure to avoid paying a heavy penalty later.
How Can We Help You?
If you are seeking guidance and advice on how to make a voluntary disclosure or are unsure about some mistake that you may have made in a tax return, contact us for support and we will lay out in detail what you need to do.
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