In November issue, “Excise” journal paid special attention to a very topical problem – “hot-time” of tax audits.
Qualified experts, including the lawyer of Juscutum legal advisers company, tell to reader what kind of conduct he should followed in the case of ” unawares ” audit, and is it possible to appeal the decision of the tax penalty to the company.
Including the urgency of the problem, the expert of Juscutum legal advisers company, Anton Kuts decided not limited by the comments below and submit to on the official website of the company the turn-based tactics of conduct during tax audits.
THE TAX AUDIT IS NOT SO BAD AS EVERYBODY FEAR THAT
1. The practice shows that a lawyer participation in the audit is a constraint and makes auditors avoid from apparent violations of inspection procedures and excessive psychological pressure on the taxpayer. During the accompany the tax audit lawyer should perform the following steps:
• check the documents and reasons for the audit;
• identify the inspection and write their data;
• Together with the director to decide on admission to the company auditors;
• check the full including of information in the validation report;
• accompany the audit and be the main contact person of the enterprise;
• monitor the appropriateness of actions of auditors;
• be present in the provision of documents and communication with service inspection entities of the enterprise;
• attend during the signing of the Act (Inquiries) of tax audit.
Also note that the lawyer, to accompany the audit should be included in state of enterprises or have power of attorney to represent the interests of the company, which is checking.
2. On the basis of a tax audit shall be composed Act or Inquiry. Inquiry is made when the audit did not reveal the violations of the company. The Act lists all the facts, arguments and conclusions of the tax auditors. The act also must contain a description of the offenses and norms of the law that was violated.
Taxpayers who do not agree with the facts, arguments and conclusions, as well as the detected violations listed in the Act, has the right to file an objection of the Act to the tax office that conducted the audit. This objection is an integral part of the Act. The taxpayer is also entitled to participate on the session of a commission, where will be considered an objection. Unfortunately, the result of the considerating of objections in most cases the same – Act leaves unchanged. Alas, the jurisprudence has developed in such a way that the act is not disputed in court.
Based on the act the tax office shall decide on the application to the company of tax penalties basis on the notification solutions. This document can be challenged in an administrative or judicial order. Administrative challenges, except the delaying time, will not bring other positive results.
3. The court challenge could lead to a positive result for the company. The depends of:
• violations of enterprise’s activity;
• actions of the tax auditors during the checking (whether implemented violations of procedure);
• the data contained in the Act and notification solutions;
• proper preparation and justification of the claim;
• other factors.
Despite the fact that according to Ukrainian law tax office must independently prove the legality of their actions, the taxpayer, but rather a lawyer must convince to the court the legality of actions of the taxpayer and indicate the violation of procedures and illegality of decisions of the tax office.
After all: “The secret of success in life is for a man to be ready for his opportunity when it comes Benjamin Disraeli”