Voluntary Disclosure Programs and how Amicorp can assist in their filing for your clients

2016/september/voluntary-disclosure-programs

Worldwide there are numerous Voluntary Disclosure Programs (VDP) in place. These are often also called a tax amnesty. In the era of Common Reporting Standards these are likely to be the last of the major voluntary disclosure and tax amnesty programs. At Amicorp we have a three phase process in place so that your clients with undeclared assets/income can take advantage of a voluntary disclosure program in the jurisdiction where they are tax resident. Amicorp is working with various tax/law firms specialized in filing a voluntary disclosure.

The Voluntary Disclosure Program (VDP) is a tax friendly regime and is the last opportunity for taxpayers (individuals and/or entities as the case may be) with undeclared assets or income to regularize them.

The VDPs’ offer low tax rates, low penalties and in most cases a full settlement of prosecution against potential tax crime.

There are 2 different kind of VDP, either a:

  • General Voluntary Disclosure Program (General VDP onwards), a permanent program, or
  • Special Voluntary Disclosure Program (Special VDP or Tax Amnesty onwards), a temporary initiative with better conditions than the general ones.

The VDPs in the countries indicated in the bullet points below are an excellent opportunity to regularize undeclared income and assets, avoiding criminal prosecution and publicity. This mitigates tax risks for your clients and will allow continuation of relationships with banks and providers.

It is essential to ensure that your clients’ structures are tax compliant and that the Ultimate Beneficial Owner (UBO) is fully compliant with his tax obligations in their country of tax residency.

Amicorp can assist you with an analysis, the regularization process and the implementation of optimized solutions for your clients.

The countries featured below depict those in which Amicorp has UBO presence and which have VDP programs or general VDP in place. (There are also other countries with general VDPs in place).

Countries with Special VDP in place

  • Argentina (available until March 31, 2017)
  • Brazil (available until October 31, 2016)
  • India (available until September 30, 2016)
  • Indonesia (available until March 31, 2017)
  • Malaysia (available until December 15, 2016)
  • South Africa (draft)
  • Turkey (available until December 31, 2016)
  • USA (available for an open period)

Countries with a General VDP in place

  • Chile
  • Colombia
  • Mexico
  • Russia
  • Taiwan

At Amicorp we have a three stage process to ensure your clients’ success with the regularization of their assets.

Chart

Phase One: Analysis

Analysis of UBO’s personal situation: tax residency, structure and tax treatment of the same, undeclared assets / income and tax compliance. Information gathering process for the possibility to file a voluntary disclosure, including availability of a permanent or temporary Voluntary Disclosure Program, possibility of a voluntary disclosure on an administrative basis, possible limitation periods, potential reasons for an ineffectiveness of a voluntary disclosure, general considerations according to a disclosure, etc.

  • Analysis of possible tax risks on the basis of the description of the facts by the client.
  • Identification of persons affected by a possible voluntary disclosure (e.g. other family members, employees).
  • Request and collect all relevant bank or other documents (documents of trusts, foundations, companies, funds).
  • Close coordination with banks, trustees, councils of foundations, wealth managers etc.

Phase Two: Regularization

  • Processing of all relevant data according to the respective national law (such as list of assets, incoming and outgoing payments in order to check the source of funds, etc.) in close cooperation with the local tax advisor or law firm partner.
  • Arranging the legal certification procedure and the issuance of apostille, if required.
  • Study, in close cooperation with the local tax advisor or law firm partner, the possibilities offered by its country of tax residency, such as VDP / tax amnesty, calculating the financial impact.
  • We then propose the best solution according to the client’s personal situation (VDP / tax amnesty).
  • The client decides whether to submit a VDP / tax amnesty.
  • Once the client decides the best program, we coordinate with the local tax advisor or law firm partner.
  • In the event the client decides not to become compliant, we would advise breaking the relationship with him.

Phase Three: Optimization

  • Development, implementation and administration of estate and succession planning structures for the post-disclosure era.
  • Delivering of supporting documents and accounts of structures for tax reporting for future tax periods.

For further information, please contact:

Geralda Kral-Buckley

Geralda Kral-Buckley

Global Head – Private Clients
+41 44 252 08 80
g.buckley@amicorp.com
Pablo Sandonato

Pablo Sandonato

Manager – Business Development
+41 44 252 08 80
p.sandonato@amicorp.com
Carla Cerqueira

Carla Cerqueira

Specialist – Global Solutions Development
+34 932 417 563
c.cerqueira@amicorp.com