A tax audit is a process developed by an accountant. The work includes a series of analyzes of company documents. Learn more details!
Do you know the importance of tax audits? If you are an entrepreneur or partner of an organization, you should already know that the tax burden in the country is one of the obstacles to maintaining a business.
But, through the frequent practice of revision, it is possible to obtain some advantages for the company, including avoiding embezzlement due to errors. Understand details on the subject and what to do to start the tax audit.
WHAT IS THE TAX AUDIT?
The tax audit consists of an audit procedure that aims to check the tax activities of a given company. To this end, different reviews are carried out focusing on the organization’s fiscal behaviour. In an effective review, points such as Taxes, Tax calculation, and Invoices are taken into consideration.
It is an important tool, mainly because it can prevent entrepreneurs from closing their doors due to tax burdens. The revision helps to resort to the recovery of credits, amounts paid off to collection agencies. In short, the tax audit covers the thorough investigation of the tax procedures carried out in the company.
WHAT ARE THE BENEFITS OF TAX AUDIT?
The tax review is capable of bringing different benefits to the company, namely:
RECOVERY OF TAX CREDITS:
For those who don’t know, the recovery of tax credits consists of a procedure where the taxpayer can request a refund of taxes unduly paid to the collection agencies.
One of the advantages of investing in tax audit refers to the fact of assessing whether there are incorrectly paid amounts that can be refunded to the company. If so, the organization can request a deduction of other future taxes, which generates more savings.
ADJUSTMENTS BY TAX LAWS:
Another advantage of resorting to tax audits is that the company understands and adjusts tax rules.
Tax laws often undergo modifications, and organizations are not always committed to knowing them. One of the benefits of a tax audit is knowing that tax review professionals are updated and operate to adjust the company based on current regulations.
PREVENTION OF FINES:
Another benefit of the tax audit is the possibility of identifying whether there are irregularities in the organization. If they exist, the professionals indicate what they are and the necessary corrections to comply with the legislation. It is, therefore, a preventive measure, considering that the organization can avoid notifications and fines by the tax authorities due to errors not observed.
HOW TO START A TAX AUDIT?
To start the tax review, the first step must be to know who will carry out this process. The work can be done by an accountant from the organization itself or by an external company.
If you choose the latter, the ideal is always to analyze the firm’s reputation, after all, it is a meticulous job that requires mastery of updates on tax laws.
Another step you need to take to start the tax audit concerns the survey of all taxes and amounts paid by the organization, generally for the last five years (limit period for applying for unused credits). This activity will help to understand the company’s real situation and what adjustments should be adopted in case of irregularities.
This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.