Voluntary disclosure is a procedure that allows people who have committed tax offenses to desist, pay their debt to the tax authorities, and avoid criminal prosecution for tax offenses. The purpose of the voluntary disclosure law is to combat illicit earnings and allow the tax administration to collect money without spending a lot of resources on investigation, trial, and indictment.

Voluntary disclosure can be carried out in tow ways:

• Voluntary disclosure through summary procedure – intended for medium-low tax evasion (taxable income less than half a million NIS)

• Regular voluntary disclosure – the declarant reveals his identity upon submitting the application.

Who cannot request voluntary disclosure?

Voluntary disclosure is a disclosure procedure in which the debtor applies on his own initiative with the aim of straightening things out and doing the right thing.

In order that the process shall not serve as a refuge for “heavy” tax offenders, the law provides that a request be made following the opening of an investigation, coverage in the media, or the disclosure of information at the time of the voluntary disclosure by the tax authorities or other governmental authority – in these cases, the declarant does not benefit from the protection of the law.

If the disclosure is not true and complete, the debtor will not be able to benefit from the protection of the law and may be prosecuted for tax evasion.

The accounting firm Amir Cohen & Co. has lengthy experience and knowledge in voluntary disclosure procedures without self-incrimination. Contact us for discreet advice and full guidance for the disclosure process.

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