The Voluntary Tax Disclosure Program (VTDP) was introduced by the Finance Act, 2020, as part of the changes made to the Tax Procedures Act (TPA). The VTDP is a program which allows taxpayers to voluntarily disclose any tax liabilities, which were previously undisclosed to the Commissioner of Domestic Taxes, for the purposes of tax compliance where relief will be granted on penalties and interest on the tax disclosed. The aim of the VTDP is to encourage voluntary disclosure of undeclared taxes and payment of principal taxes by avoiding the imposition of punitive penalties and interest. This will (i) enhance tax compliance, (ii) improve revenue collection and (iii) bring more taxpayers under the tax net. Under the VTDP, the taxpayer is required to review total tax compliance and apply for amnesty on all areas of non-compliance. The program covers the period from 1st July 2015 to 30th June 2020 where undeclared tax liabilities were accrued by the taxpayer. However, there are exceptions where (i) the taxpayer is under audit, investigation or is a party to on-going litigation in respect of the tax liability or any matter relating to the tax liability; or (ii) the taxpayer has been notified of a pending audit or investigation by the Commissioner. This programme is set to run from 1st January 2021 to 31st December 2023. Applications must be made within this period for applicants to be eligible. The Commissioner has granted the following: (i) reliefs of 100% waiver for 100% remission of penalties and interest where the disclosure is made in the year 2021; this is scheduled to expire at the end of December, 2021, and (ii) 50% and 25% remission of penalties and interest where the disclosure is made in the years 2022 and 2023; this is scheduled to expire at the end of the years 2022 and 2023 respectively.

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