The IRD encourages voluntary disclosure where a tax payer becomes aware of an error in their tax affairs.
There are a number of advantages in making a voluntary disclosure rather than being found out by the IRD. One of these is that the shortfall penalty charged (which range from 20% to 150% of the tax amount) on the shortfall of tax may be reduced by up to 100%.
In order for the reduction to apply the voluntary disclosure must be made to the IRD prior to the department becoming aware of it.
Please contact your UHY Haines Norton Director if you have any questions or concerns about IRD and Voluntary Disclosures.