Voluntary disclosure to mitigate penalties
Voluntary disclosure to mitigate penalties
Voluntary disclosure – How you can avoid or reduce criminal consequences
Have you discovered errors in your tax returns or failed to report your taxes correctly? In some cases, you can avoid criminal consequences —or have them reduced—by voluntarily disclosing the matter to the Danish Tax Agency.
What Is a voluntary disclosure?
A voluntary disclosure means that we on your behalf contact the Danish Tax Agency with the purpose of correcting errors in previous filings. To be considered a voluntary discloser, the disclosure must be made voluntarily and before the Danish Tax Agency has initiated a tax audit.
A voluntary disclosure can provide:
- Exemption from criminal consequences in cases of gross negligence or minor intentional underreporting (up to DKK 100,000)
- Criminal sanctions may be reduced for larger amounts, typically resulting in a pecuniary penalty equivalent to the underreported sum rather than the imposition of custodial sentences.
When Is the disclosure considered voluntary?
A disclosure qualifies as voluntary where the taxpayer reports previously unreported income to the Danish Tax Agency prior to acquiring knowledge, or having reasonable grounds to assume, that the Agency will otherwise detect the irregularity.
Conversely, if you merely fear you might be discovered, it can still qualify as a voluntary disclosure.
Why Seek Advice?
The provisions for voluntary disclosure and reduction of criminal consequences are complex, and an error in the process may mean that you lose the right to exemption from criminal consequences or that emphasis is placed on the wrong circumstances. Bachmann/Partners’ experienced lawyers can assist with the following:
- to assess whether the conditions for a voluntary disclosure are met,
- to draft the disclosure submission to the Danish Tax Agency correctly, and
- to clarify the risk of criminal consequences.
Contact us today for assistance
Experienced Assistance
At Bachmann/Partners, we advise both individuals and businesses in tax criminal cases—including voluntary disclosure. We are able to help you limit the consequences and ensure that the case is handled correctly.
Do you need advice on voluntary disclosure to mitigate penalties?
Bachmann/Partners has some of Denmark’s leading tax lawyers within the field of criminal tax law. We are therefore qualified to guide you safely through complex processes of voluntary disclosure to avoid criminal liability. Our specialists can guide you safely through the process, ensuring that the outcome meets your expectations.
Contact us today for an informal meeting about your case.
Contact us today for an informal meeting about your case.
Regardless of your situation, we can help you create the most advantageous solution. We have Denmark’s best
team of lawyers and experts, so you can be confident you are receiving the best advice.
We have offices in Copenhagen, Aarhus, and Aalborg, so you always have access to tax advice near you.
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