The choice to conduct a area audit might be taken with the intention to confirm whether or not the taxpayer has accurately fulfilled the obligations for VAT.
The obligations of the audit part after the audit determination has been taken are listed beneath:
Preparation of audit program
Preparation of audit program ought to clearly and concisely include the next necessities:
– Name and Taxpayer Personal Identification Variety of taxpayer to be audited;
– Object of the audit program;
– Audit objectives and expectations;
– Authorized and sub-legal framework to be checked for observance;
– Sort of audit;
– Interval to be audited;
– Deadline for conducting the audit;
– Audit group and head of audit group;
In keeping with the organizational construction, the audit program is reviewed and authorised by the pinnacle of audit part, head of Tax Audit Listing and eventually signed and sealed by Head of Regional Tax Listing (RTD).
Audit discover
The audit discover and appointment of auditors to audit massive taxpayers is issued in compliance with the shape out there Tax Audit Handbook. Normally, the usual Type is used to order the start of an audit. The audit outcomes might be modified in line with the usual Type.
The principle rule to comply with is that audit discover ought to be despatched to taxpayers by mail to the taxpayer’s handle, which isn’t a particular tax handle. The taxpayer’s official handle is the handle registered within the nationwide register for the taxpayer in query or the particular mail handle the taxpayer has declared in the intervening time of registration.
Exclusion of paperwork
You will need to particularly underline this ingredient within the audit discover, which ought to include details about easy methods to request the exclusion from audit of sure paperwork or data labeled as “state secret” or “industrial secret”.
Scope of audit discover
The audit discover regulates every thing to be audited. RTD can not audit durations following the date of the audit discover. Which means that an audit discover to examine fulfillment of the duty to file tax declarations and supply full and correct data can solely be utilized for obligations occurring in the course of the interval as much as the date of the audit discover.
In particular circumstances the audit could cowl durations earlier than the standard evaluation for delays in fulfilling tax obligations. For instance, it could be acceptable to audit earlier years when it’s unattainable to evaluate delays or additional tax, within the case of massive tax frauds in addition to when auditing the depreciation foundation masking the years for which the tax is being modified.
If RTD intends to audit different time durations, totally different from what is roofed within the audit discover, RTD ought to ask a request in Danger evaluation part of Basic Taxation Directorate and after is authorised from this unit RTD can problem an audit discover for the interval in query.
If the aim of the audit is to examine the existence of situations to adjust to the duty to offer data for the anticipated realization (ongoing 12 months), the audit will embrace solely these time durations by which the duty to submit the tax declaration doesn’t begin earlier than the date of the audit discover. An audit discover supposed to acquire legitimate data to audit compliance with third get together obligations (audits of third events) solely covers time durations as much as the date of the audit discover.
Change of penalties
If the aim of the audit is to examine compliance with necessities associated to VAT, such audit can not handle different taxes, for instance, wage tax and withheld tax, or revenue tax. Nonetheless, if the outcomes of the audit on wage tax and withheld tax have an effect on the quantity of different taxes, it’s evident that LTO ought to act (such case is named change of penalties).
Because the audit discover solely instructs on every thing to be audited, it isn’t essential to alter the discover if the modifications made for one tax or tariff have an effect on one other tax or tariff. Within the audit memo, the auditor ought to write the results pertaining to a different tax or tariff or ensure that they’re corrected by different means.
Conducting audit in compliance with code of ethics and professionalism
As a part of the general public sector, RTD is obliged to respect the code of ethics. This code ought to be noticed by the auditors, heads of part and tax audit Listing and Head of RTD in addition to by all different workers working within the tax administration. This code foresees the development of guidelines of ethics primarily based on the traits, tradition, authorized system and setting by which audit buildings function. The aim of observing the code of ethics is to make taxpayers audited by RTD assured within the integrity, justice and objectivity of the tax audit.
Concluding assembly with taxpayer
Along with submitting a report, the auditor agrees with the audited get together as to the time and group of the concluding assembly, throughout the 5-day deadline from submission of the feedback half performed by taxpayer in opposition to the findings in draft report. The auditor ought to inform the Head of RTD about this. As a rule, individuals within the concluding assembly embrace the supervisor of the audited company and different representatives, in addition to the auditors and heads of workplace and part. In particular circumstances and requested by the pinnacle of part, the Head of RTD can even participate in such conferences. Within the concluding assembly the events current their arguments and counter arguments to the auditors’ opinions expressed within the report and attempt to make clear all the small print of the report
Within the concluding assembly the heads of audit groups write down all of the objections and clarifications in line with a particular protocol stored for this function. The audited company ought to current its objections to the draft report in writing on this very concluding assembly.
Circulation of audit report inside RTD
The audit report and accompanying paperwork ought to first be reviewed by the pinnacle of part, then by the Director of Tax Audit and eventually a abstract of them is reviewed by the Head of RTD.
Discover to taxpayers about audit end result
Taxpayer ought to obtain the discover for the duty ensuing from the audit carried out by RTD no later than 14 days after the date of the audit report, submitted by way of protocol by the Head of Tax Audit. After receiving the authorised audit report and the respective evaluation notices, the Workplace of Protocol in RTD is accountable to arrange a duplicate to be delivered to the taxpayer’s handle.
The tenth day from the date that postal service submits the discover is taken into account because the date of receipt for the duty evaluation discover. The accountability for failure to obtain the discover in due time is with the taxpayer, which is obliged to declare the proper handle with the intention to ensure that notices be delivered by mail in time. RTD may additionally ship the evaluation discover in particular person. In such case the date when this notices is handed to the taxpayer and confirmed by the latter is taken into account the day the discover is acquired. In case the taxpayer refuses, the evaluation discover is taken into account delivered on the date of refusal 審計 服務.
When can taxpayers make their objections?
The audit report is signed by the audit group. If it has not been attainable to resolve the audited taxpayer’s claims whereas making ready the audit report up to date the evaluation discover is issued, the audit group could not signal the report and current the respective objections in writing in an annex hooked up to the report. Beside their names within the report they need to write the be aware “see remark”.
After reviewing the taxpayer’s claims, the audit group returns to their evaluation once more to replicate the taxpayer’s claims in writing hooked up to a particular annex to the audit report. On this evaluation, the auditor ought to present arguments to technically help the explanation why the introduced objections will not be taken under consideration and if they’re, the group ought to make them evident in writing. After a response has been given, they’re submitted for approval to the pinnacle of workplace and Head of RTD.