Make a voluntary disclosure
When a taxpayer tells us about a false or misleading statement they have made to us or a change that increases their tax or reduces their credits - and they do so without prompting, persuasion or compulsion on our part - we generally refer to it as a 'voluntary disclosure'.
A voluntary disclosure provides you with the opportunity to bring your tax affairs into order. For example, if you have not disclosed income that you know you should have, you have claimed deductions you know you weren't entitled to, or you have made other statements in relation to your affairs that you know were false or misleading. In most cases a voluntary disclosure also opens the way to concessional treatment both for any administrative penalties that apply and any interest charges. (Administrative penalties are those we may impose without taking court action.)
The amount of any reduction in penalty amounts and interest charges depends on when you tell us about the correction. Generally, the reduction is greater if you make the disclosure before we notify you of an examination. You will have to pay any tax you owe and may have to ask us for any interest concessions.
How to make a voluntary disclosure
To make a voluntary disclosure you can either use one of the forms we provide or write us a letter. If you write a letter, you need to provide all the information we need, including a declaration, correctly signed.
How we process your voluntary disclosure
We process your voluntary disclosure in the same way as we process the tax return or statement it relates to. This means that voluntary disclosures for income tax are treated as amendments.
GST, WET and fuel tax credit disclosures
Businesses may make a voluntary disclosure to report incorrect amounts of GST, wine equalisation tax (WET) or fuel tax credits or over-claimed fuel schemes credits. Property owners may have to make a 'creditable purpose' GST adjustment for property transactions not previously reported.
Penalties and interest arising from voluntary corrections
When you make a voluntary disclosure that increases the tax you should have paid (or reduces your credit), we generally substantially reduce any interest and administrative penalties we would otherwise impose. (Administrative penalties are those we may impose without taking court action.)
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Excise
Excise law has few administrative penalties and no provision for interest charges. It does not allow for concessional treatment of administrative penalties that arise as a result of a voluntary disclosure.
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Difficulty repaying a voluntarily disclosed debt
If you have difficulties meeting your payment obligations contact us and we will work with you to come up with a payment plan that takes your personal circumstances into account.
Sections within Make a voluntary disclosure
Last Modified: Monday, 20 May 2013