Tax audit

Tax audit

In the modern business environment, where tax legislation is constantly changing, and the requirements for transparency of enterprises are increasing, tax audit is becoming an important tool for ensuring the financial stability of a company. It is not just a document check, but a comprehensive legal assessment of the state of tax accounting, which allows you to timely identify and eliminate risks before regulatory authorities become interested in them.
Tax audit is a preventive mechanism that allows you to prevent mistakes, avoid fines and preserve your business reputation. And with a professional lawyer, this process turns into an effective tool for strengthening your business.

Legal stages of tax audit support

Here is what a typical process of conducting a tax audit by a lawyer looks like:

• Initial consultation and analysis of the specifics of the business: At the first stage, the lawyer studies the company's industry affiliation, volume of activity, main sources of income, structure of business operations and features of accounting and tax accounting. This allows you to adapt the audit to real risks, and not to formally check all the documentation.
• Coordination of the list of documents and determination of the scope of the audit: Together with the accountant or financial director, a list of documents to be checked is formed. It may include tax returns, primary accounting, contracts with counterparties, personnel documents, VAT reports, etc. The periods to be covered by the audit are determined, depending on the client's goals.
• Legal analysis of tax reporting: The specialist checks the correctness of tax returns, compliance of rates, benefits and tax burden with current legislation. Particular attention is paid to the correctness of filling out the reporting, timeliness of submission and completeness of information disclosure. Discrepancies between accounting and tax obligations are analyzed.
• Verification of tax risks in contractual work: Contracts with counterparties are analyzed, especially those that may attract increased attention from tax authorities: transactions with non-residents, services without actual confirmation, large tax credits, transit companies, etc. The specialist assesses the extent to which the contracts legally protect the company's interests and do not create fiscal risks.
• Preparation of an analytical report with recommendations: After completing the analysis, the lawyer prepares a detailed report describing all identified errors, violations and potential tax risks. Specific recommendations for eliminating shortcomings or minimizing consequences are attached to each item.
• Support for the implementation of changes and further consulting: At the client's request, the specialist supports the implementation of changes in document flow, helps correct errors in reporting, prepares new standard contracts, and provides training for the accounting department. Further subscriber legal services are also possible.

Thanks to a comprehensive approach, a tax audit allows not only to identify problems, but also to ensure the stability of the company for the future, protecting it from tax audits and litigation.

Terms of providing legal assistance in tax audit

The effectiveness of a tax audit directly depends on the terms of cooperation between a lawyer and a company, which are usually as follows:

1. Full access to the necessary documents: For a high-quality audit, it is necessary to provide the lawyer with a full package of documents, including tax returns, contracts, payment documents, reports to the tax authority and internal regulations of the enterprise. The scope of the audit is agreed in advance.
2. Appointment of a contact person in the company: In order not to waste time on coordinating actions, the client determines a responsible employee (for example, a chief accountant or financial manager), who promptly provides documents and responds to the specialist's clarifying requests.
3. Flexibility in the format of interaction: A tax audit can be conducted both in the client's office (in person) and remotely - by providing documents in digital form. The most convenient and effective format is chosen that meets the company's capabilities.
4. Agreeing the terms and cost of the service: Before starting work, the terms of the audit (usually 3–10 business days) and the cost, which depends on the scope of the audit, are determined. This is recorded in the contract.

Coordinated cooperation allows you to conduct an audit not only quickly, but also with maximum benefit for the business - to identify potential threats and eliminate them before problems arise.

Advantages of contacting a lawyer when filing tax returns

In-depth legal analysis: A lawyer evaluates not only the numbers, but also the legal consequences of business transactions, which allows you to more accurately identify tax risks.

Recommendations for eliminating risks and avoiding fines: You will receive not just a list of errors, but a specific action plan on how to correct them, taking into account case law and the position of regulatory authorities.

Preparation for a tax audit or business restructuring: An audit allows you to "see in advance" what tax authorities may see and correct the situation before the actual audits begin.

Common questions about company tax reporting

What does the cost of legal assistance for a tax audit depend on?

The price of a tax audit depends on several factors: the volume of documents, the period subject to inspection (for example, one quarter or three years), the complexity of business transactions (foreign economic activity, individual entrepreneurs, VAT transactions), the presence of risky counterparties, and the need for further support in implementing recommendations. The cost may also vary depending on the format (face-to-face or remotely) and the urgency of implementation. All these parameters are discussed before concluding the contract.