We deal with the topic of tax audit quite often in our articles. Tax control represents a considerable time burden and a burden on human resources of the audited tax entity.

Read also our articles 5 steps to prepare for a tax audit without stress and The inspection has started. Should I be represented?

Frequently asked questions of tax subjects deal with the scope and powers of the tax administrator during the tax audit and to what the tax subject is entitled. At the same time, knowing what I am entitled to during the tax audit and what I can ask the tax office inspectors during the tax audit gives the audited tax entity a greater sense of security and self-confidence.

Let's take a closer look at the areas that are good to watch out for and where in practice we see room for more rigorous protection of the rights of the audited taxpayer.

Submission of a written authorization of the employee of the tax administrator and presentation of a service card

The tax audit begins on the basis of a proper notification by the tax administrator of the commencement of the tax audit. The tax audit itself is already performed by the employees of the tax administrator, who must prove their authority from the tax administrator at the beginning of the tax audit. It should be clear from the mandate which employee will perform the tax audit (at least in the scope of name and surname) and to what extent (which tax will be audited and for which tax period). Such authorization should be submitted automatically by the authorized employee. If the person who wants to carry out a tax audit of you or your company does not have such authorization, you are not obliged to provide any cooperation. The tax administrator must be able to prove his identity card, which is essential for verifying his identity.

The right to present the evidence we have available and to propose other evidence (which we do not have) to the tax administrator

We can use as evidence everything that can be used to find out and clarify the facts that are decisive for the correct determination of the tax and that is not in conflict with the law. The primary burden of proof lies with the taxable person, therefore the taxable entity provides all the evidence at its disposal to substantiate its claims.

If the audited tax entity is aware of the specific evidence but is not in a position to secure or present the evidence, it has the right to request the tax administrator to take such evidence. These are, for example, cases where an important document is in the hands of a third party or the testimony of a third party. It can also be a document or a person who is abroad; here the tax administrator may request the foreign tax administrator to provide him with this proof abroad. Although it is up to the tax authority to decide whether to take the evidence proposed by the audited tax entity, the case law requires the tax administrator to take the proposed evidence and thus allow him to bear his burden of proof or to duly justify why he did not take the proposed evidence.

The right to ask questions to witnesses and experts at the oral hearing

The inspected tax entity has the right to be present during the questioning of a witness or expert and to ask questions to witnesses and experts. This also means that the tax administrator is obliged to inform the tax subject in advance of any oral hearing during which a witness or expert is heard.

The right to inspect the minutes of a local survey conducted with another tax entity in connection with a tax audit

It often happens that some facts are verified by the tax administrator with third parties, especially with suppliers and customers of the tax entity, through a local survey. The taxable entity is entitled to inspect the minutes of such a local survey. The tax administrator may not ask questions to third parties during the local investigation, as this would already involve a witness hearing at which the audited tax entity would have to be present.

Be present at meetings with your employees

The employer has the right to be present at the meetings of the employees of the tax administrator (controllers) with the employees of the audited tax entity.

The right to inspect the borrowed documents from the tax administrator in his usual office time

If you need to have your own documents available during the tax audit, for example for the purposes of your opinion on the tax administrator's findings, but at the beginning of the tax audit you handed over these documents to the tax administrator (inspectors), you have the right to appear at tax office and request access to your documents.

The right to comment on the findings during the tax audit

The tax subject has the right to become acquainted with all the facts that the tax administrator found out during the tax audit. Such notification must take place during the tax audit before the tax audit report is issued. The right of the taxable person to comment on the findings is an important right of the taxable person, because it is through this statement that the taxable person can reverse the imminent collection of the tax before issuing the protocol from the tax audit.