Voluntary Disclosure & Reconciliation

Voluntary Disclosure & Reconciliation

What is a Voluntary Disclosure?

A voluntary disclosure is when a taxpayer proactively notifies the FTA of an error or omission in a filed return.

When to Submit

• If you discover an error that reduced your tax liability
• If you omitted income or over-claimed deductions
• As soon as the error is discovered

Benefits of Voluntary Disclosure

• Reduced penalties — if submitted before an FTA audit
• Good faith — demonstrates compliance intent
• Avoids escalation — prevents criminal investigation

Process

1. Submit a voluntary disclosure via EmaraTax
2. Pay the additional tax due
3. FTA reviews and applies reduced penalties (if applicable)

Reconciliation

For certain penalties, the FTA may offer a reconciliation process:

1. FTA issues a penalty assessment
2. Taxpayer submits a reconciliation request
3. FTA reviews the circumstances
4. FTA may reduce or waive the penalty

When Reconciliation is Available

• First-time offences
• Minor violations
• Evidence of compliance efforts

Important

Voluntary disclosure is only effective if submitted before the FTA initiates an audit. Once an audit begins, full penalties apply.