Voluntary Disclosure Agreement
VDA services
Voluntary Disclosure Agreements (VDA) play an important role in the complex landscape of business compliance and regulatory oversight in the USA, Europe and other countries worldwide. This kind of agreements provides businesses with a channel that enables them to come forward and confess before they get caught up by tax evasion charges.
What is Voluntary Disclosure Agreement (VDA)?
A Voluntary Disclosure Agreement is an official agreement between a company or individual and a governmental body, such as a tax authority. With a VDA, the entity comes clean about not following tax rules or other regulations. In return, they receive benefits such as reduced fines or lower interest rates. The main goal of a VDA is to encourage compliance and address past mistakes without facing the full severity of penalties.
The purpose of VDA?
The primary purpose of a voluntary disclosure agreement (VDA) is to encourage voluntary compliance with tax and legal obligations. Officials can achieve several key objectives by creating a structured and motivated approach for businesses to come forward and prepare their filings.
First, VDAs help ensure compliance by encouraging organizations to voluntarily disclose any regulatory violations, which leads to improved and sustained adherence to regulations. This proactive approach ensures that many businesses comply without the need for enforcement action.
Second, the VDA and unpaid taxes increase revenues, contributing to governmental budgets. This revenue supports public services and infrastructure.
Third, VDAs can use resources more efficiently. Authorities can better divide their enforcement efforts, focusing on cases of willful and gross non-compliance rather than pursuing minor or unresolved offences.
voluntary disclosure agreement
How it works?
- Consultation – begin with a detailed assessment to identify non-compliance issues and assess the potential benefits of a VDA.
- Application – we will manage your registration process, ensuring necessary documentation, and draft a voluntary disclosure application detailing the non-compliance issues and the period involved.
- Negotiation and Enforcement – our experts will secure the best possible terms for you, covering the scope of disclosure, penalty reduction, and payment conditions, to ensure a smooth and advantageous implementation of the VDA.
- Continuous Optimization – monitor ongoing compliance, conduct regular audits, and provide ongoing support to address any post-contract issues to remain in compliance with tax and regulatory requirements.
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Frequently asked questions
Q: What kinds of taxes can be made reported through VDA?
A: VDAs may involve various types of taxes, such as sales and use taxes, income taxes, and other national and regional tax liabilities.
Q: Are VDAs confidential?
A: Most of the time, VDAs have provisions for confidentiality aimed at protecting the business information disclosed.
Q: Can a VDA protect against criminal prosecution?
A: In many cases, VDAs provide protection against criminal prosecution for non-compliance issues.
Q: How long does the VDA process take?
A: The length of time required to conduct a VDA varies depending on the complexity of the issues and the speed of responses from both the business and the authority involved.
Q: What happens if additional non-compliance issues are discovered after the VDA is executed?
A: During the VDA process, it is important to reveal all known issues. If there are more problems that come up later, they might need to be treated separately, and the terms of the VDA may not apply.
OTHER SERVICES
We also can help you with
Backdated VAT returns
Businesses trading internationally must submit past-due VAT returns to meet their obligations. This procedure includes filing VAT returns for past periods with inaccurate reporting or payment of VAT. Our VDA service assists in handling overdue returns by evaluating and overseeing your outstanding VAT debts, guaranteeing all unpaid VAT is paid to the appropriate tax agencies. We can also help you get back VAT that has already been paid to your local tax authority, but the amount you can reclaim may be affected by local laws limiting the time period for reclaiming.
Due Diligence Compliance
Compliance with due diligence entails carefully examining and confirming your company’s financial and tax documents to ensure they are accurate and compliant with applicable laws and regulations. This detailed procedure is essential for detecting any inconsistencies or areas where the company may have not fulfilled its VAT responsibilities.
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