The choice to conduct a subject audit could be taken with a purpose to confirm whether or not the taxpayer has accurately fulfilled the obligations for VAT.
The obligations of the audit part after the audit choice has been taken are listed under:
Preparation of audit program
Preparation of audit program ought to clearly and concisely comprise the next necessities:
– Identify and Taxpayer Personal Identification Variety of taxpayer to be audited;
– Object of the audit program;
– Audit targets and expectations;
– Authorized and sub-legal framework to be checked for observance;
– Kind 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 permitted by the pinnacle of audit part, head of Tax Audit Listing and at last signed and sealed by Head of Regional Tax Listing (RTD).
The audit discover and appointment of auditors to audit massive taxpayers is issued in compliance with the shape out there Tax Audit Guide. Normally, the usual Kind is used to order the start of an audit. The audit outcomes could be modified in accordance with the usual Kind.
The primary rule to observe is that audit discover must be despatched to taxpayers by mail to the taxpayer’s tackle, which isn’t a particular tax tackle. The taxpayer’s official tackle is the tackle registered within the nationwide register for the taxpayer in query or the particular mail tackle the taxpayer has declared in the mean time of registration.
Exclusion of paperwork
You will need to particularly underline this ingredient within the audit discover, which ought to comprise details about how you can request the exclusion from audit of sure paperwork or info categorized as “state secret” or “industrial secret”.
Scope of audit discover
The audit discover regulates every part to be audited. RTD can not audit intervals following the date of the audit discover. Which means that an audit discover to verify fulfillment of the duty to file tax declarations and supply full and correct info can solely be utilized for obligations occurring in the course of the interval as much as the date of the audit discover.
In particular instances the audit could cowl intervals earlier than the same old evaluation for delays in fulfilling tax obligations. For instance, it might be applicable to audit earlier years when it’s unimaginable to evaluate delays or further tax, within the case of massive tax frauds in addition to when auditing the depreciation foundation protecting the years for which the tax is being modified.
If RTD intends to audit different time intervals, totally different from what is roofed within the audit discover, RTD ought to ask a request in Threat evaluation part of Normal Taxation Directorate and after is permitted from this unit RTD can problem an audit discover for the interval in query.
If the aim of the audit is to verify the existence of circumstances to adjust to the duty to offer info for the anticipated realization (ongoing yr), the audit will embrace solely these time intervals by which the duty to submit the tax declaration doesn’t begin earlier than the date of the audit discover. An audit discover meant to acquire legitimate info to audit compliance with third occasion obligations (audits of third events) solely covers time intervals as much as the date of the audit discover.
Change of penalties
If the aim of the audit is to verify compliance with necessities associated to VAT, such audit can not tackle different taxes, for instance, wage tax and withheld tax, or revenue tax. Nevertheless, 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 part to be audited, it isn’t vital 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 implications pertaining to a different tax or tariff or be sure 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 must be noticed by the auditors, heads of part and tax audit Listing and Head of RTD in addition to by all different staff working within the tax administration. This code foresees the development of guidelines of ethics primarily based on the traits, tradition, authorized system and surroundings 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 occasion as to the time and group of the concluding assembly, inside the 5-day deadline from submission of the feedback half completed by taxpayer towards the findings in draft report. The auditor ought to inform the Head of RTD about this. As a rule, members 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 instances and requested by the pinnacle of part, the Head of RTD may also 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 accordance with a particular protocol stored for this objective. The audited company ought to current its objections to the draft report in writing on this very concluding assembly 審計.
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 at last 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 through protocol by the Head of Tax Audit. After receiving the permitted audit report and the respective evaluation notices, the Workplace of Protocol in RTD is accountable to organize a duplicate to be delivered to the taxpayer’s tackle.
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 duty for failure to obtain the discover in due time is with the taxpayer, which is obliged to declare the proper tackle with a purpose to be sure that notices be delivered by mail in time. RTD might also ship the evaluation discover in individual. 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 obtained. In case the taxpayer refuses, the evaluation discover is taken into account delivered on the date of refusal.
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 getting ready the audit report up-to-the-minute the evaluation discover is issued, the audit group could not signal the report and current the respective objections in writing in an annex connected to the report. Beside their names within the report they need to write the observe “see commentary”.
After reviewing the taxpayer’s claims, the audit group returns to their evaluation once more to mirror the taxpayer’s claims in writing connected to a particular annex to the audit report. On this evaluation, the auditor ought to present arguments to technically assist the the explanation why the offered objections aren’t 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.