Protect your business during the audit
Protection of business during the audit – representation of the client’s interests (protection in tax audits) during the tax audit. This is a service of departure and personal presence of a lawyer, lawyer-consultant or accountant during tax control measures and when considering acts of tax audits, organization of direct communication between specialists of our tax practice and auditing tax authority.
This is the most effective measure, allowing to eliminate all possible errors in the line of conduct of the taxpayer even before they are issued by the tax authority.
Tax GFS approach
In the course of the tax audit, tax inspectors look not only at the violations committed by the company, but also evaluate the taxpayer in terms of its ability to challenge the decision taken by the tax audit. The presence of an experienced consultant representing the interests of the taxpayer will certainly be taken into account by the tax authorities, which will eventually affect the number of additional charges. After all, the maintenance of the tax audit by a qualified specialist with a lot of experience with tax authorities is a guarantee that the tax authorities will not be able to accrue unreasonable payments, will not be able to request unnecessary documents and will receive answers to their requests, representing the position of the taxpayer with the maximum consideration of his interests.
It is also important to understand that the model or tactics of the taxpayer’s conduct and the protection of business in tax audits should be built initially true: long-term jurisprudence rejects those situations in which the taxpayer tries to change their arguments at the stage of the court. A large array of tax claims is much easier and cheaper to prevent at the stage of the audit itself, than to appeal them in the future.
Our experience shows that it is the mistakes made directly during the tax audits that usually end in the longest and often unprofitable trials for the taxpayer.
Who is especially relevant for this service?
Skilled protection of business during the inspection, the rights of the taxpayer in conducting tax audits directly during tax control measures is especially important from a purely practical point of view, when:
- we are talking about exit tax audit with possible large pre-tax accrual (with risky transactions in audited periods, large tax refunds, tax benefits and/or aggressive style of tax planning);
- The organization does not have its own legal staff specializing in tax law;
- the organization has changed its chief accountant or manager, and the new employee has not yet had time to study all the weaknesses and strengths of the company;
- tax inspectors make it clear that they need to accrue a certain amount of arrears in any case.
Features of the service during the inspection
The service of direct protection of the interests of the taxpayer with the personal presence of a lawyer implies the provision of a client lawyer – an individual manager, who will conduct all negotiations on behalf of the client with the tax authority. As a rule, this service includes the following stages of interaction between the client and specialists of our tax practice:
- Analysis of the available procedural decisions and documents handed down by the tax authority during the audit;
- Sampling of the largest and/or most tax-risky customer transactions over the period under review;
- Analysis of primary documentation, contracts, registries and registers for selected transactions, recommendations for the possible elimination of errors until they have been identified by the tax authority;
- Determining the prospects of a possible dispute with the tax office, the strategy of behavior of the taxpayer;
- Personal presence and representation of the client by proxy during all tax control activities;
- Gradual support and appeal of the results of the tax audit.
The service “protection of business during the inspection” can be provided both comprehensively on all the above points (which is mainly recommended for exit tax audits), and only at key stages of tax audits – if necessary to be present during the review of its results and representation of interests in the conduct of separate tax control measures.
As part of the provision of the service, the protection of the business during the inspection, the specialist in advance analyzes all the documents made during the inspection by the tax authority, including the decision on the appointment of the audit, the requirement to provide documents, the certificate of completion of the tax audit, the decision on the appointment (additional) measures of tax control, the decision to suspend / extension of the tax audit, the act of tax audit, as well as all procedural documents sent to the tax authority from the moment of the inspection (letters, complaints, We ask for a full package of procedural documents in advance so that we can act in your best interest effectively.