Our services

Audit and tax consulting

Preparation for tax inspection

Objectives of the preparation.
The tax law provides for possibility of release of a taxpayer from liability for making changes in tax declarations provided that such changes were made before the date when taxpayer became aware of on-site tax inspection assignment.  Usually, large companies become aware of forthcoming tax inspection before the date of written order on such inspection. Therefore, there is enough time to prepare for the visit of tax inspector thoroughly.

Thorough preparation for tax inspection results in:
•    Significant reduction of tax compliance risks.
•    Making of necessary amendments to primary accounting documents and accounting/ financial statements.
•    Minimization of potential financial losses, such as penalties and financial sanctions (fines).
•    Preparation of the arguments against any potential claims from tax inspectors.

In the course of preparation for tax inspection, we can check the client’s tax liabilities in the whole or any particular tax liabilities, for example, liabilities related to income tax or value added tax.

Scope of work:
•    Analysis of existing tax payments.
•    Check of tax base determination correctness, tax and duty calculation correctness, tax rate and tax privilege application correctness.
•    Check of correctness of the tax declarations prepared.
•    Identification of additional measures (including partial reconstruction of financial and tax accounts) to be taken for the purpose of reduction of potential financial sanctions.
•    Identification of existing tax risks or any errors associated with calculation or payment of taxes including critical errors.
•    Elaboration and legal reasoning of arguments pertaining to existing tax risks.

In addition to the scope of work above, we can provide the following services:
•    Support in the course of on-site tax inspections.
•    Preparation and presentation of claims against tax inspection outcomes.
•    Appeal of tax authority decisions in a higher tax authority.
•    Appeal of non-regulatory acts of tax authorities in the court of arbitration.

Work product:
Written report containing the following information:
Identified breaches and deviations, and recommendations on their elimination.
Identified risks, overpayments and other problems related to calculation of taxes and duties.
Comprehensive plan of actions proposed to taxpayer before assignment of on-site tax inspection.