Voluntary Disclosure
Voluntary disclosure is a process that allows individuals and taxpayers to report undisclosed assets and/or income to the tax authorities without facing criminal penalties for the lack of prior reporting. This process is carried out through an application based on the temporary directive for voluntary disclosure. This procedure has been available for several years, and most recently, in December 2017, the tax authorities extended the directive once again.
Voluntary disclosure enables individuals to report previously unreported income to the tax authorities, including interest and foreign securities, as well as assets held domestically or abroad that were not properly disclosed as required by law.
It is important to emphasize that the voluntary disclosure process is only applicable if, at the time of the disclosure, made in good faith, there is no existing information or investigation regarding the matter by the tax authorities.
Given the increasing exchange of financial information between foreign banks and financial institutions under international agreements, individuals are advised to consider utilizing this procedure. Taking proactive steps through voluntary disclosure can help avoid significant inconvenience and legal complications.
For more information available on our website, see the article we published on this subject, which explains the conditions and rules applicable to voluntary disclosure under the published directive. For your convenience, here is the link to the article – Voluntary Disclosure Procedure – Temporary Directive.
Our tax department at Michael Weizman & Co. – Certified Public Accountants possesses extensive knowledge and expertise in reporting to the tax authorities under the voluntary disclosure procedure. Given the sensitive nature of these matters, it is highly recommended to engage with an experienced and knowledgeable accounting firm for assistance.
An accountant from our firm will be happy to assist you with this service. Contact us today for a no-obligation consultation.