Our tax team specialises in conducting tax audits with respect to all types of taxes.
The objective of a tax audit is to:
- identify tax risks
- identify tax savings
- eliminate the risk of penal fiscal liability
During most tax audits we are able to identify areas of potential tax savings, not infrequently such savings may significantly exceed the cost of audit.
Tax audits are conducted by skilled tax advisors with a long-standing experience in review of corporate tax settlements. Our tax audit team is composed of individuals specialising in tax advisory, lawyers and individuals with professional qualifications in accountancy.
Tax audit usually embraces all types of taxes unless the client wishes to limit its scope.
We offer the following types of tax audits:
- monthly/quarterly tax audit conducted before the submission of tax return and tax payment
- yearly tax audit
- tax audit within due diligence investigation
Majority of our clients opts for a monthly tax audit conducted before monthly tax settlement.
As a result of audit we prepare a detailed report containing description of audited issues, found irregularities and recommendations as to future actions.
Unlike reports of other consultancy firms, our reports contain detailed recommendations as to specific documents and sums and precise account of audited documents.
At the client’s request, irregularities and errors identified during tax audit may be discussed at a dedicated meeting with the client’s employees.
Tax risk arising from the areas identified during tax audit as to which differing interpretations exist, is secured by filing applications to tax authorities for binding interpretation of tax provisions.
In order to secure penal fiscal risk related to liability of management we can develop procedures for settlement of selected taxes.
Among our tax audit clients are leading banks, investment funds, pension funds, rating agencies, life insurance companies as well as trade and manufacturing companies.
Standard tax audit comprises:
- reconciliation of tax assessment with financial statements and selected accounts
- verification of differences between the balance sheet result and tax result presented by the client
- verification whether the client has properly reflected the above differences in CIT calculation
- analysis of key contracts and internal regulations that may have impact on taxes
- analysis of selected risk areas (e.g. leasing, marketing activities, financing)
- review of supporting documents depending on their volume and type (full review, review up to the agreed materiality level, sample-based review, period-based review) – with respect to all taxes and itemizing audited documents in the report
- analysis of risks related to employee’s income on account of gratuitous benefits (company cars, company telephones, company events, employee and management pension schemes, business travel allowances)
- verification whether CIT and VAT chargeability have been correctly recognised and verification of timeliness of VAT deduction and claiming expenses as tax deductible costs for CIT purposes
- analysis of VAT settlement in transactions with non-residents from and outside of the EU
- verification of compliance with obligations related to documenting related-parties transactions and verification of documents correctness (i.a. correcting invoices, VAT registers, internal invoices)
- verification of source tax chargeability
- checking compliance with information and disclosure obligations
The scope of audited issues and documents depends on the allowed timing and the size of client’s business.