UFA VTC Reporting Policy Now Available
The UFA reporting policy framework for Voluntary Tax Compliance (VTC) schemes, adopted by the UFA at its 2014 Annual Meeting, is now available for download.
VTC schemes have been or continue to be used for a variety of purposes including raising tax revenue, increasing tax compliance; and/or facilitating asset repatriation in response to economic emergencies. These schemes usually involve a time-limited offer by the government to taxpayers to settle previously undisclosed and unpaid tax liabilities in exchange for waiver of civil (including interest), and sometimes criminal, penalties. Successful schemes seek to balance the need for providing sufficient incentives to those engaged in non-compliance to come forward with the risk of being seen to reward or encourage such conduct.
There is a level of potential ML/FT risk with VTC schemes. This policy establishes a reporting and analysis framework for UFA members who have issued, or intend to issue, a voluntary tax compliance scheme.