Voluntary Disclosure – Everything You Need to Know Before Submitting It. A Practical Guide

Voluntary disclosure is a legal tool that can help you avoid criminal consequences. In this practical guide, we’ll explain how to effectively submit a voluntary disclosure. We will also discuss what its conditions are and what can be achieved with it.

Voluntary disclosure – what is it?

Voluntary disclosure is a legal institution in tax law that allows individuals who have committed tax offences or violations to avoid criminal liability. It involves voluntary:

• admitting to violating tax regulations,
• reporting this fact to the appropriate authorities. For example the Head of the Tax Office.

In what situations does voluntary disclosure apply?

Voluntary disclosure aims to allow taxpayers to avoid penalties in situations such as:

• failure to pay VAT,
• payment of improper income tax,
• late submission of the tax return,
• errors in bookkeeping,
• incorrect application of the VAT exemption or VAT rate.

Who can use voluntary disclosure?

Anyone who committed a tax violation can submit a voluntary disclosure. However, it is important to note that:

• The disclosure should precisely describe the circumstances of the tax or customs violation.
• The disclosure should be submitted by the party responsible for the situation. For example accounting office or an employee responsible for the accuracy of settlements.

Voluntary disclosure submitted by the wrong person may be rejected by tax authorities. Rejection can also occur if the details describing relevant circumstances are insufficient.

In what form should the voluntary disclosure be submitted?

Voluntary disclosure can be submitted:

• In writing
• Electronically – via the e-PUAP of the relevant Tax Office or the tax portal. The taxpayer should use the specified disclosure template and get an Official Receipt Confirmation.
• Orally for the record.

How to write a voluntary disclosure?

The form of voluntary disclosure depends on the choice of the person submitting it.  However, the content of the statement must include specific information:

Voluntary disclosure – attachments to the statement

A taxpayer who wants to use the voluntary disclosure must enclose to the statement:

• confirmation of payment of the required public-law liability. One must settle it at the latest within the time limit set by the competent authority.
• items that were subject to an obligation that the taxpayer failed to fulfil.

Conditions for the effective of voluntary disclosure

To ensure that voluntary disclosure protects against penalties, the entrepreneur must additionally:

• Pay the full amount of the public-law liability reduced by the committed illegal act. One must settle it within the deadline set by the authorised preparatory proceedings authority.
• Submit the notification in writing, orally for the record, or via the e-Tax Office account.
• Disclose the essential circumstances of the prohibited act, in particular other involved persons.

Voluntary disclosure protects against penalties. Yet, it does not exempt taxpayers from the obligation to pay arrears and interest. It’s also useful if the office contacts the taxpayer about record-keeping failures.

Can voluntary disclosure be ineffective?

There are certain situations in which it is not possible to effectively submit voluntary disclosure. This is the case when:

• The tax authorities have already documented the commission of a tax violation and recognised the perpetrator’s liability.
• The perpetrator of the prohibited act is in the course of control proceedings.
• The act was deliberate, and the perpetrator organized a criminal group for it.
• The perpetrator incited third parties to commit tax offences or violations

Where to submit voluntary disclosure?

Voluntary disclosure can be submitted to the relevant state institutions, i.e.:

• the relevant Tax Office,
• Customs and Tax Office,
• The Tax Office for large entities.

What is the deadline for using voluntary disclosure?

The legislator has not specified a specific deadline by which the taxpayer may admit to a fiscal violation. Therefore, you should remember that:

• Voluntary disclosure should be submitted immediately after committing a prohibited act.
• The disclosure must be submitted before the tax authority documents the offence.

Consequences of submitting voluntary disclosure

After admitting the act, the disclosure procedure does not involve a response or contact with the submitter. Effective voluntary disclosure leads to:

• Refraining from imposing a penalty,
• and/or indicating a deadline for the fulfillment of obligations.

If the voluntary disclosure is ineffective, penal and fiscal proceedings will be initiated.

Voluntary disclosure – everything you need to know. Summary

Voluntary disclosure is an important instrument in Polish law. Understanding and using it correctly can reduce the legal consequences of failing to meet tax obligations.

Our experts will help you prepare an effective voluntary disclosure. Contact us today!

FAQ – Questions and answers