Before beginning an audit, the heads of audit offices should have carefully considered the most recent tax situations for each type of tax with the intention to identify the groups presenting a lack of clarity or irregularities. All this should be subject to discussions with the heads of assessment and enforcement and debt management sections.You can get information about tax audit via HighBury Tax Solutions.
In the audit planning process, the head of the office and the head of the section should assess the risk for fraud, so that, if fraud is discovered, the plan can include the appropriate measures to be taken.
Auditors should try to define management practices which limit fraud, in order to help assess the strengths and weaknesses of the systems.
While planning and conducting the audit, the head of the audit section should take into consideration and check the following indicators during the selection of taxpayers:
• Interrupted VAT declarations for tax periods beyond 3 months.
• Accuracy of values declared in the Declaration Forms, which are not mathematically correct.
• Purchase of fixed assets, benefiting from the scheme of VAT payment postponement according to government decision and fiscal policy.
• VAT payment indicators at a lower rate than the market price rate in the respective economic sector the taxpayer operates.
• Declarations and payments at suspicious levels of employment income tax and social and health insurance contributions.
• Taxpayers with unsettled tax obligations.