Tax audit

Tax audit — evaluation of the existing taxation model used by the customer’s company, and the development of conclusion on the possibility to increase efficiency in the field of the company tax accounting.

Tax audit is performed to avoid penalties that could be connected with improper taxation.  Moreover, audit of tax accounts makes it possible to create the base of supporting information for crediting (repayment) of amounts of overpaid or overcharged tax.

Tax audit is a voluntary measure, which is taken solely at customer’s discretion.  The tax audit services are especially relevant for companies expecting the tax audit or having doubts as to efficiency of tax charging and payment.

Another important objective of the tax audit is to optimize the tax payment system to facilitate the business operations.

Tax audit allows not only the identification of all errors but the in-depth analysis of the same, development of a set of measures to correct errors and avoid penalties.

The purpose of the audit of budget settlements is the confirmation of correct calculations, completeness and timeliness of transfer to the budget of taxes, levies and charges. 

Thus, the audit of budget settlements is one of the tax audit tasks. 

Depending on the purpose of tax audit set by the organization for the auditors, we determine the scope and type of the audit.  This may be:

• audit of specific types of taxes (excise duty, profit tax, VAT etc.);
• comprehensive tax audit including the verification of the tax base determination, application of tax rates, application of tax benefits by tax calculation and payment, correct assessment of tax, complete and timely transfer of tax payments as well as proper preparation of tax accounts for each type of tax (levy) paid by the company to the budget.

The result of the tax audit conducted by our company is the report that contains the detailed description of the identified tax risks and recommendations on their elimination or mitigation and further maintenance of tax accounts.

We offer to our customers the tax audit service, which includes the checking of the following elements:

• proper formation of the tax base for each type of tax, assessment and payment of taxes and levies for a certain period;
• status of settlements with the budget and extra-budgetary funds;
• compliance of the tax accounting system with requirements of the current legislation;
• quality of primary documents considering practical requirements of the tax authorities.

Moreover, our specialists will identify the operations, to which special attention will be paid by the Inspectorate of the Federal Tax Service.

In the tax audit report we always provide relevant legal precedents on tax disputes, which may help the organization to assess own risks and to make sound management decisions.