- Tax compliance is complex and businesses must choose between Voluntary Disclosure Agreement (VDA) and Managed Audit to address discrepancies.
- VDAs involve voluntarily disclosing non-compliance to tax authorities, often resulting in waived penalties and limited look-back periods.
- VDAs are suitable for businesses not yet audited but needing to correct past mistakes.
- Managed Audits are conducted under tax authority supervision, often when a business is already flagged for non-compliance.
- Managed Audits allow businesses to manage the audit process with expert guidance, potentially reducing penalties and interest.
- VDAs offer proactive compliance, reduced penalties, and control over the process.
- Managed Audits provide a structured audit process with potential benefits if the business cooperates fully.
Source: btcpa.net
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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