Tax audit: types, features

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

An audit of tax reporting is a check of financial documentation for its compliance with the provisions of the Tax Code. This event can be authorized by both regulatory authorities and the head of the enterprise. Consider further 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 regulatory authorities. Tax audit in this case will allow timely identification of shortcomings in the documentation and correct them. This, in turn, will prevent sanctions for violations, as well as eliminate the likelihood of overpayments to the budget. Specialists performing a tax audit identify errors that may arise not only due to insufficient professionalism of the person responsible for compiling the documentation, but also due to fairly frequent changes to the current legislation.

Check specifics

Proactive tax audit is often necessary. This is especially true for large enterprises, as it allows you to significantly optimize costs. Tax audit may not be performedonly before the official check of the control authorities. It is advisable to organize an audit and when changing Ch. an 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 detection of overpayments on taxes, they can be returned only within 3 years after they were made. In this regard, the timeliness of the audit is of great importance.

Classification

Tax audit can be:

1. Complex. This type of audit will require a large amount of time and money from the manager. The procedure involves a large-scale revision of all documentation. However, with such a check, there is a possibility that certain nuances will be missed. They may be minor, but they can also have a significant impact on the reliability of information in the reporting. 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 areas for spending funds and optimize them.
2. Themed. This type of verification is suitable for those enterprises that know their problem areas. Thematic audit of tax accounting allows for a thorough study of specific elements of reporting. As a rule, such a check takes much less time than a comprehensive one, which is undoubtedly another advantage of it.
3. Structural. Such a tax audit is suitable for enterprises with a network of divisions. This review will coverthe whole taxation system. During a structural audit, you can compare the workload of different departments and balance it.

Methodology

Tax audit of an organization is carried out in two stages. At the first stage, a preliminary assessment of the taxation system existing at the enterprise is carried out, at the second stage, the correctness of deductions is checked. In turn, these stages include various activities. In the first stage:

1. The factors influencing reporting indicators are identified.
2. Checking payment method.
3. Diagnostics of document flow and work of departments responsible for deductions.
4. The company's tax indicators are calculated.

According to the results of the first stage, specialists get an idea about the specifics of the company's activities and assess probable violations of the provisions of the law, outline weak areas. The timing of the implementation of these activities will depend on the volume of workflow and the size of the enterprise itself.

Checking the correctness of deductions

At this stage, income tax returns, personal income tax, VAT, advance payments, etc. are analyzed. The average duration of an audit, as a rule, is no more than 5 days per deduction. If the enterprise has several divisions or operates at different levels, then the duration of the analysis may increase. As a result of the analysis, specialists formulate conclusions about the structure of taxation, correctshortcomings, offer different optimization options.

Quick check

This type of audit, to a certain extent, combines thematic and complex analysis. Express verification involves the study of all reports in a short time. It is performed when the enterprise does not have enough time to conduct other types of audit, and the volume of documentation is large enough. Express verification is also indispensable in cases where the acquisition of a large company or its share is planned. During the audit, either all tax risks, or a certain part of them in a specific area of work are assessed.

Conclusion

Tax audit in almost all enterprises is carried out according to the above scheme. Certain features of the audit may be determined by the specifics of the enterprise. For example, mining is subject to different taxes, the procedure 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 an incorrect determination of the tax base, the use of benefits, or mathematical inaccuracies. At the same time, errors in the calculation of VAT are caused by incorrect application of the tax to be deducted. In some cases, the scheme provided for in the law is used to evade paying it to the budget.