A12.1 As mentioned in Chapter 5, the following are the ATO’s standard paragraphs relating to voluntary disclosures that it uses in its audit and review notification letters.

Audit notification letter — not preceded by a review

We recommend that you take this opportunity to review your records. If you find that you have made an error or omission, please advise <Officer’s Name> of the details in writing by <date >. You will need to provide sufficient information for us to work out the shortfall amount. If you do this, any penalty that would otherwise apply to the shortfall amount disclosed may be reduced by 80%.

If you identify an error after this date, we also encourage you to disclose that issue as soon as possible. You may still receive a 20% reduction in penalties where you make a voluntary disclosure after that date if it saves us significant time and resources.

Audit notification and meeting letter — not preceded by a review

We recommend that you take this opportunity to review your records. If you find that you have made an error or omission, please advise <Officer’s Name> of the details in writing at the meeting on <date >. You will need to provide sufficient information for us to work out the shortfall amount. If you do this, any penalty that would otherwise apply to the shortfall amount disclosed may be reduced by 80%.

If you identify an error after this date, we also encourage you to disclose that issue as soon as possible. You may still receive a 20% reduction in penalties where you make a voluntary disclosure after that date if it saves us significant time and resources.

Audit notification letter — escalated from review

You have an opportunity to review your records to identify any errors or omissions you made. If you notify us of these errors or omissions with enough information for us to determine the shortfall amount, any penalties that apply may be reduced by 20%. The reduction is dependent on saving the ATO significant time and resources. This is more likely if a voluntary disclosure is made early in the audit.

If you identify errors or omissions for issues or periods outside of the audit as described to you, you also may make a voluntary disclosure. If we can determine the shortfall amount from the information provided, the penalty, if any, will be reduced by 80%.

Review letter

You have an opportunity to review your records to identify any errors or omissions you have made. If you make a voluntary disclosure while the risk review is ongoing any penalties that apply would be reduced by 80%. To make a voluntary disclosure you need to provide us with sufficient information to determine a shortfall amount.