No one is insured against the unexpected, without warning the arrival of the tax authorities to you with a check. However, whether such an inspection is scheduled or unscheduled, it always raises concerns about its results. Therefore, you should prepare in advance for its passage and be prepared.
First of all, you should systematically check the schedule so as not to miss possible changes to include you in it. A sign of an unscheduled tax audit is the sending of a request by the tax authorities to provide information and its documentary confirmation. Knowing in advance about the fact of conducting a tax audit against you, you will be able to prepare for it more carefully.
It will not be superfluous to start a log of inspections. In this case, the inspectors will be obliged to make an entry in the journal, and the refusal to make an entry will be grounds for not allowing the tax authorities to conduct it.
It is necessary to determine in advance the person authorized to communicate with the tax inspector and make decisions during the audit, and the persons who will perform the duties in his absence.
Examine in detail and analyze the documentation of business transactions that were carried out during the period that will be subject to tax audit – the lack of signatures and incorrect indication of details can be costly for companies. In addition, the contract may provide for additional registration of transactions carried out under the contract, which the parties did not carry out. In addition, you should think about possible additional documentary evidence of the reality of your operations.
It is necessary to streamline the flow of documents and ensure the availability of originals of all contracts, mandatory primary and other documents confirming the conduct of business transactions for the last three years from the date of filing the relevant tax return (seven years – for
controlled operations). Excess documents should be removed from the accounting department.
If this is an on-site inspection, then it should be determined exactly where the inspectors’ workplace will be.
A good solution would be to develop and implement instructions for employees so that everyone knows what to do when conducting a tax audit. It is also not superfluous to work out the algorithm of staff actions during the tax audit and regular trainings on relevant topics.
If you have any questions or need advice, the team of Neofelis Love Group JSC is happy to help.
📞 +38 (050) 471-77-71
📬 neofelis.lg@gmail.com