Voluntary Disclosure is a process of voluntary cooperation (or active repentance) that allows taxpayers who hold interests, undeclared financial activities and wealth abroad to regularise their position with the tax authorities and the tax office, paying their taxes and possible reduced fine.
In many cases, participating in such a tax amnesty programme it is the right course of action.
However, there are many pitfalls with these programmes too, and tax authorities often use scare tactics and pressure to lead people to take the wrong decisions. What happens, for example, if you are tax resident in more than one country at the same time and both could claim the same assets? Taking advantage of an amnesty in one country could lead you into trouble in another. What will be the effect on relatives, business partners etc? Are you ready to answer questions about them when the tax authorities see the complete picture of your business affairs?
In some cases there are better and perfectly legal alternatives available to you that only an expert offshore tax counsel might be familiar with, such as amended back filings, or simply giving the funds away to a trust.
Every case is different but one thing is for sure: you should think long and hard and take professional expert advice from a qualified tax lawyer before you make any move. MTF work with law firms who have extensive experience in this area. Contact us in confidence for further information and to discuss your options.