Tax and customs5-minute read
When a tax audit starts: what to do in the first 10 days
How an audit ends is often settled by the answers given in the first two weeks.
AuthorRauf HasanliPartner
When a field audit is ordered, companies often leave the accountant alone with the inspectors. Hasty, incomplete answers to the first requests later become the main argument in the report.
The first 10 days
- Day 1: read the order and the request; note which years and which taxes are covered
- Days 1–2: decide who speaks to the inspectors, one person only
- Days 2–5: list the papers for each request and keep copies of everything handed over
- Days 5–10: check the risky transactions yourself before the inspectors do
The riskiest transactions are usually cash payments, contracts with related companies and payments to non-residents. If the papers on those are incomplete, it is better to prepare an explanation before anyone asks.
If you disagree with the report, the deadline to object is short. Show it to a lawyer the day you receive it. This article is general information, not legal advice.
This article is general information, not legal advice. Law and practice can change.
