Thu, Jan 17, 2013

Delaware House Bill to Expand Incentives for New Delaware Voluntary Disclosure Program

Delaware Senate Bill 238 signed into law in 2012, established a New Voluntary Disclosure Program (“Program”) administered by the Delaware Secretary of State.

This legislation affords companies the benefit of a shorter “look-back” period to 1996 or 1993 instead of the existing guidelines of 1991.

Specifically, if companies elect to participate in the Program by June 30, 2013 and complete the process on or before June 30, 2014, the look back period is reduced to 1996; but if companies elect to participate after June 30, 2013 but by June 30, 2014 and complete the process on or before June 30, 2015, the look back period is reduced to 1993.

This week, Delaware introduced House Bill 2, which provides additional incentives for companies to take advantage of the Program. Specifically:

  • Companies can utilize the Program to gain compliance, with the benefit of a reduced look back, for property types, periods, subsidiaries and related entities that were not included in prior Delaware Voluntary Disclosure Agreements (“VDA”); and

  • Companies that enter into a VDA with the Secretary of State on or before June 30, 2013, have one (1) additional year to complete the voluntary submission and remittance.   House Bill 2 extends the existing June 30, 2014 completion date to June 30, 2015.  This extension will require all participants in the Program, regardless of whether the VDA process was initiated by June 30, 2013 or June 30, 2014, to complete their VDA submissions and remittances to the Secretary of State by June 30, 2015.

This Bill has numerous co-sponsors as well as the support of Governor Jack A. Markell.

At Duff & Phelps we assist companies to ensure they are “meeting, but not exceeding” their unclaimed property reporting obligations.

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