Disadvantages
- Cost - The main disadvantage of this alternative is the cost. This alternative usually requires the assistance of a third party service provider who will require a fee for their services and the compliance cost might outweigh the benefits (i.e. if the potential exposure is not material).
- Compliance Burden - The taxpayer will have an increased compliance burden immediately and going forward, as they will now be required to remit and report taxes.
Read more about this topic: Voluntary Disclosure Agreement