How to reduce the likelihood of a tax audit?

At the moment, an on-site audit of the tax inspectorate is considered the most effective method for identifying unscrupulous taxpayers. Since all the company's documentation gets into the access of tax employees, this allows detecting violations of tax laws.

After a small analysis of the practice and documentation of the tax inspectorate, it is possible to determine the criteria by which the Federal Tax Service evaluates taxpayers for good faith and reliability. You can also make a list of signs that may serve as reasons for the appointment of on-site inspections.

The presence of the following aspects in the company's activities is the main reason for the appointment of an audit:

• continuous unprofitability for several reporting tax periods in a row;
• tax payments are 20-30% lower than the industry average;
• low wages
• large tax deductions;
• disproportionate growth of expenses to incomes as a permanent trend;
• profitability below 30% of the total for the industry in the region.

And these are just the most common signs. You can also get under a tax audit by late submission of tax reports, or by providing incomplete reports. We strongly recommend that you approach the issue of reporting with the utmost care and accuracy.

Keep in mind that unscrupulous and suspicious counterparties can also be the reason for a tax audit.

When conducting tax optimization in a company, be careful and do not overdo it with measures. Any optimization can be regarded as a violation of the law and evasion of payments.

In order not to arouse suspicion, we recommend that you carry out tax optimization under the supervision of professionals.

Law Firm “PARITET” together with “PARITET Audit” is ready to provide you with highly qualified assistance in resolving various issues related to the legal and tax activities of your company. Our experts will do everything to minimize the likelihood of your business falling under the close attention of the tax authorities.