voluntary disclosure – What is it and what is likely to be changed in it?

Planned change Article 16 section 5 point 2 The IRS Code means that the initiation of business activities aimed at revealing a crime/ fiscal misdemeanour by the authority (not only the collection authority) will exclude the possibility of using voluntary disclosure.

According to Article 16 section 1 The Tax Penal Code shall not be punishable for fiscal criminal offence or fiscal misdemeanour the perpetrator who, after having committed the criminal offence, has notified the requested authority of the offence, revealing the essential circumstances of the act, in particular the persons involved in its execution.

However, it is not always possible to avoid liability under the IRS. voluntary disclosure it has an effective protective function only if, within the time limit set by the competent authority, the required public liability has been paid in full, with a depleted act committed.

In addition, if the prohibited act does not consist in the reduction of the amount of the claim and the decision on the forfeiture of the items is compulsory, the offender should submit the items and, in the event that they cannot be filed, pay them with monetary equivalent; no obligation shall be imposed to pay them with monetary equivalents if the forfeiture relates to certain items.

Under Article 29(4) Tax Penal Code[1].

According to Article 16 section 3 The IRS, if complex objects can be quickly destroyed or damaged, their storage would be combined with disproportionate costs or excessive difficulties, or would result in a significant reduction in their value, the investigating authority shall require the perpetrator to pay their monetary equivalent (unless the forfeiture concerns items whose production, possession, marketing, storage, transport, transfer or transfer is prohibited).

Communication concerning voluntary disclosure shall be submitted in writing or orally to the minutes.

However, the institution cannot always be used voluntary disclosure. Appropriate section 5 and section 6 Article 16 The Tax Penal Code lists situations where the notice is ineffective and to which perpetrators do not apply voluntary disclosure.

And yes, the notice shall be ineffective if:

1. was filed at a time when the law enforcement authority had already had a clearly documented message of the commitment fiscal criminal offence or fiscal misdemeanour,
2. has been submitted after the law enforcement authority has commenced its official activity, in particular search, checking or inspection to be disclosed fiscal criminal offence or fiscal misdemeanour, unless the act has not provided grounds for initiating proceedings for that act.

At the same time, it should be stressed that there is currently a planned change of wording Article 16 section 5 point 2 Tax Penal Code which according to the bill[2] is intended to take the following form: ‘after the authority has started its official activity, in particular the search or inspection for disclosure fiscal criminal offence or fiscal misdemeanour, unless the act has not provided grounds for initiating proceedings for that act prohibited.’ This will also mean that the initiation of business activities aimed at revealing a crime / fiscal misdemeanour by the authority (not only the collection authority) will exclude the possibility of using voluntary disclosure.

Returning to the current provisions, the provision of voluntary disclosure does not apply to a perpetrator who:

• 1) directed the performance of a disclosed prohibited act,
• 2) using another person's addiction to himself, he instructed him to carry out the forbidden act disclosed,
• 3) organized a group or a relationship to commit fiscal criminal offence or such a group or union, unless the notifications in question Under section 1, made with all members of the group or union,
• 4) He urged another person to commit fiscal criminal offence or fiscal misdemeanour in order to refer her to the prohibited action.

In view of the above, it must be concluded that voluntary disclosure is very helpful to taxpayers. The question is whether it will continue to be so when the proposed amendments are introduced.