Voluntary Disclosure Programs — Design, Principles, and Implementation Considerations

Technical Notes and Manuals, April 6, 2022

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Voluntary Disclosure Programs — Design, Principles, and Implementation Considerations

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Bibliographic details

• Authors: Dora Benedek, Martin Grote, Grace Jackson, Maksym Markevych, Christophe J Waerzeggers, Lydia E Sofrona
• Published: April 6, 2022
• Series: Technical Notes and Manuals
• DOI: https://doi.org/10.5089/9798400206184.005

Overview and central findings

• Purpose: Explores the conditions, design elements, and implementation considerations of a successful voluntary disclosure program (VDP), including its compliance with anti–money laundering/combating the financing of terrorism (AML/CFT) international standards.
• Key emphasis: A VDP must be offered in the context of a considerably strengthened and credible enforcement capacity—one that is explicitly publicized to taxpayers—to avoid undermining tax morale.
• Subject areas: Anti-money laundering and combating the financing of terrorism (AML/CFT), Crime, Expenditure, External position, Flat tax, Foreign assets, Revenue administration, Tax administration core functions, Tax evasion, Taxes.

Design elements and technical considerations

• Core elements examined: Conditions for offering a VDP; VDP design features; implementation considerations; alignment with AML/CFT international standards.
• Compliance focus: The note considers how a VDP can be structured to meet AML/CFT requirements while achieving tax-policy objectives.
• Institutional prerequisite: Strong, credible enforcement capacity is presented as a prerequisite for offering a VDP, with publicization to taxpayers highlighted as essential.

Implementation considerations and operational guidance

• Public communication: Explicit publicization of the strengthened enforcement capacity to taxpayers is necessary to protect tax morale.
• Administrative requirements: The note discusses organizational and operational design features necessary for adjudication and implementation (e.g., VDP adjudication unit is listed as a keyword).

Content in this bundle

• Voluntary Disclosure Programs— Design, Principles, and Implementation Considerations. TNM/2022/002
  • Voluntary Disclosure Programs— Design, Principles, and Implementation Considerations. TNM/2022/002 (Markdown version)
  • Voluntary Disclosure Programs— Design, Principles, and Implementation Considerations. TNM/2022/002 (PDF)