voluntary disclosure
[vɒlənˈterɪ dɪsˈkloʊʒər]
nounpl: voluntary disclosures
divulgação voluntária
1. The act of voluntarily providing information about something, especially financial irregularities, tax evasion, or misconduct, without being required or compelled to do so by law or regulation.
The company made a voluntary disclosure to the SEC regarding accounting errors in their previous financial statements.
A empresa fez uma divulgação voluntária à CVM sobre erros contábeis em seus demonstrativos financeiros anteriores.
2. A legal mechanism in tax and compliance that allows individuals or organizations to reveal undisclosed income or violations before being discovered by authorities, often resulting in reduced penalties.
Through the voluntary disclosure program, the taxpayer avoided criminal prosecution by reporting unpaid taxes.
Através do programa de divulgação voluntária, o contribuinte evitou processo criminal ao declarar impostos não pagos.
3. In securities regulation, the timely and accurate disclosure of material information to investors that is not mandated by law but is ethically or strategically important.
The bank's voluntary disclosure of potential risks enhanced investor confidence.
A divulgação voluntária pela banco dos riscos potenciais aumentou a confiança dos investidores.
In Brazil and the United States, voluntary disclosure is a significant legal and financial concept. In the U.S., the IRS has formal voluntary disclosure programs that allow taxpayers to resolve tax issues before audit. In Brazil, the Receita Federal (Brazilian Internal Revenue Service) also offers voluntary disclosure mechanisms. Companies often use voluntary disclosure strategically to demonstrate good faith, reduce penalties, and maintain stakeholder trust. This concept is particularly important in corporate governance and compliance frameworks in both countries.
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