An audit of tax reporting is a review of financial documentation for its compliance with the provisions of the Tax Code. This event can be authorized by both the regulatory authorities and the head of the enterprise. Let us further consider its features.
Why do I need a tax audit?
The head of the enterprise can initiate an audit without waiting for the audit of the control bodies. A tax audit in this case will allow timely identification of defects in the documentation and correct them. This, in turn, will prevent sanctions for violations, and also eliminate the likelihood of overpayments to the budget. Specialists performing a tax audit identify errors that may arise not only due to the lack of professionalism of the person responsible for compiling the documentation, but also because of the frequent changes to the current legislation.
Verification specifics
A proactive tax audit is often necessary. This is especially true for large enterprises, since it allows to significantly optimize costs. A tax audit can be carried out not only before the official audit of control bodies. It is advisable to organize an audit and when changing hl. accountant or other specialist responsible for the preparation of declarations and the deduction of mandatory budget payments. It should be noted that in case of revealing overpayments for taxes, they can be returned only within 3 years after their completion. In this regard, the timeliness of the audit is of great importance.
Classification
A tax audit may be:
- Integrated. This type of verification will require a large amount of time and money from the manager. The procedure involves a large-scale audit of all documentation. However, with such a check, there is a possibility that certain nuances will be skipped. They may be insignificant, but they can also have a significant impact on the accuracy of information in the statements. At the same time, it is advisable to carry out a comprehensive tax audit before a scheduled audit of control structures. In addition, such an audit will identify the areas of spending and optimize them.
- Thematic. This type of check is suitable for those enterprises that know their problem areas. A thematic audit of tax accounting allows a thorough study of specific reporting elements. As a rule, such a check takes much less time than a complex one, which, undoubtedly, is another of its advantages.
- Structural. Such a tax audit is suitable for enterprises with a network of divisions. This test will cover the entire taxation system. During the structural audit, you can compare the load of different departments and balance it.
Methodology
The tax audit of the organization is carried out in two stages. At the first, a preliminary assessment of the taxation system existing at the enterprise is carried out, at the second, verification of the correctness of deductions. In turn, these steps include various activities. At the first stage:
- Factors affecting reporting indicators are identified.
- The method of calculating payments is checked.
- Documentation and work of the departments responsible for deductions are diagnosed.
- The tax indicators of the company are calculated.
According to the results of the first stage, specialists get an idea of the specifics of the company’s activities and assess possible violations of the provisions of the law, outline weak zones. The timing of these activities will depend on the volume of workflow and the size of the enterprise itself.
Validation of deductions
At this stage, the declaration of income taxes, personal income tax, VAT, certificates of advances, etc. are analyzed. The average duration of the audit, as a rule, is no more than 5 days for one deduction. If the company has several divisions or operates at different levels, then the duration of the analysis may increase. As a result of the analysis, experts formulate conclusions about the structure of taxation, correct deficiencies, and offer different optimization options.
Express check
This type of audit to some extent combines thematic and integrated analysis. An express check involves examining all reporting in a short time. It is carried out when the company does not have enough time to conduct other types of audits, and the volume of documentation is quite large. An express check is also indispensable in cases when it is planned to acquire a large company or its share. During the audit, an assessment is made of either all tax risks, or a certain part of them in a particular area of work.
Conclusion
Tax audit in almost all enterprises is carried out according to the above scheme. Those or other features of the audit can be determined by the specifics of the enterprise. For example, mining is subject to different taxes, the order and amount of payment of which differs depending on the raw materials (minerals, oil, metals, etc.). Violations in deductions from profits, as a rule, are associated with incorrect determination of the tax base, the use of benefits or mathematical inaccuracies. In this case, errors in calculating VAT are caused by the incorrect application of tax to deduction. In some cases, the scheme provided for in the law is used to evade paying it to the budget.