Tax audit. Tax accounting audit
Tax accounting audit (or due diligence – Due Diligence) consists of a comprehensive and expert audit of the customer’s tax accounting, which allows to identify, as well as reduce the tax risk, while helping to correct its non-compliance with the current rules in a timely manner.
This form of audit today is a popular and effective tool. Due Diligence Tax Audit is an independent tax accounting review, which allows to create a basis of economic and tax security of the enterprise and prepare it for possible audit of fiscal authorities.
In the realities of regular innovations of legislators and regulatory changes, their ambiguity and contradictions, the fiscal approach of the regulatory authorities, there is a need to control tax indicators.
Types of Tax Due Diligence
Comprehensive audit is a check of the total order of all tax accounting during a certain tax period, which is most often stolen by the year. This audit reveals existing cost systems, their possible shortcomings and develop mechanisms for optimizing them. Most often, the Customer turns to the comprehensive Tax Due Diligence in anticipation of a planned inspection of the fiscal authority.
Thematic audit is an expert audit and analysis of tax accounting of a separate tax accounting (tax, collection, type of relations, etc.) during a certain tax period, allows to study in depth and closely possible shortcomings and to develop mechanisms for their optimization. The Tax Due Diligence is used by Customers who have an idea or suspicion of which direction is the narrowest (problematic), which business processes are subject to close attention.
Structural audit is an expert audit of a single structural unit or cost or profit center. Allows you to compare the tax burden on units or centers and balance it. Structural Tax Due Diligence is in demand for customers with an extensive, complex structure, as well as various areas of business.
Tax Due Diligence is an expert audit of all tax accounting in a limited time, is a “symbiosis” of complex and thematic. Such a service is preferred in the case of the time and means limit for comprehensive audit and thematic. The Tax Due Diligence express is also used if the client company is planning to acquire another business or its separate direction, with a comprehensive Due Diligence. Under such conditions, all tax risks of the examination facility are subject to examination.
Benefits of tax audit services
1. Reducing risks, tax burden, reducing tax liabilities, choosing the optimal tax regime.
2. Identify systemic and individual errors in business processes.
3. The ability to avoid negative consequences in the form of tax credits.
4. A specific list of applied and possible corrective actions to minimize risks, including the subsequent one.
The contents of the Due Diligence Tax Audit
1. General analysis of the tax system and the collection of the necessary information.
2. Identify the main components that affect tax performance and careful examination of the sources of tax risks:
– Correctness of calculation and applicable methodology in calculating taxes, calculation of tax indicators (parallel or preliminary);
– Completeness and correctness, timeliness of declaration and payment of taxes, fees, availability of arrears;
Correctness and completeness of the preparation of primary and other tax documents;
Interpretation of tax laws in determining and shaping the tax base;
3. Analysis of the legal component – the quality of contracts, primary and other tax documents, the resulting risks, which can lead to tax charges and fines, the ability of the company to protect;
4. The ratio of existing accounting systems and tax accounting, their cumulative compliance with the requirements of the current legislation.
1. Identifying bottlenecks and risks, in particular:
Assessing the correct definition of the tax base;
Analysis of the legality of the application of tax benefits;
Examination of the calculation of tax liabilities for each type of tax;
Predicted calculation of the consequences of the application of tax laws;
2. Recommendations from risk minimization specialists.
3. Guidelines for tax planning based on the specifics of your business.
4. The starting point of projects to restructure business processes or all activities.
We will advise you, help you organize accounting support, choose a tax system, and if necessary – check the processes of organizing your business on legal, accounting, tax, as well as financial issues. And believe me, your money will certainly come back to you.
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