Maybe some of you know the feeling when you find a notice in the envelope received from the tax office about the start of a tax audit. Nothing nice. However, tax audit may not be as scarecrow as it seems at first glance. No panic! We will explain to you what 5 steps are possible when starting a tax audit and how it is possible to prepare for a tax audit so you can survive with the least possible harm.

STEP no. 1:

If you already hold an envelope with a tax audit notice in your hand, you need to read this notice carefully. You will find out:

- what tax and for what period will be subject to control,

- what documents need to be provided, and

- when exactly will the tax audit begin.

STEP no. 2:

If, for some reason, the date of commencement of the tax audit or the date of submission of documents does not suit you, we recommend that you contact the tax office and agree on new dates.

In certain circumstances, you have the option of agreeing on the place of the tax audit differently than specified by the tax administrator. This will save you time traveling to the tax office in another city. Note that the following locations are considered:

- at the tax office

- on your premises

- on the premises of your tax advisor.

STEP no. 3:

Another important step in preparing for tax audit, which should not be underestimated, is the preparation of the required documents. Check if the documents are complete or remove the files which are not required by the tax office. The preparation of a list of submitted documents is also appropriate.

STEP no. 4:

The next step in preparation is to identify possible risks or errors in the audited period. Try to consider whether you did not have any transactions during the audited tax period which the tax office might consider as a risky. If you have found such transactions, you can begin to consider the possible evidence you would provide to the tax administrator if you are in doubt about these transactions. Call your tax advisor to assess possible risks.

STEP no. 5:

Do not hesitate to analyze possible risks or errors! If you find that the tax return calculation is incorrect, you only have 15 days from the date of receipt of the tax audit notice to have your tax return corrected. One of the advantages of this procedure is the reduction of the amount of the fine by the tax office related to the elimination of the error.

You can find out what you can expect in the next tax audit process in the next upcoming articles.

However, if the point is that in the current situation at the time of the pandemic, when we are trying to limit personal contacts, it is not possible to properly perform actions in a given tax audit, consider suspending the tax audit. You can read more about this option in our previous post.

If even though our advice seem the preparation for the tax audit complicated to you or you do not have the space to pay attention to the tax audit, do not hesitate to contact us. As part of our many years of experience in VGD, we already have extensive experience with how tax audits take place, and we can represent you in the entire process so that you come out of it with the least possible damage. We also recommend that you follow our website, Facebook or LinkedIn for more up-to-date information, as well as tips and advice on your business journey.