News of a tax audit worries many managers, yet companies with well-documented, orderly books have nothing to fear. The key is preparation.
1. Keep your documents in order. Every invoice, contract and certificate of performance must be available, preferably in digital, easily retrievable form. 2. Reconcile your records. The books, VAT returns and bank statements must match – discrepancies should be cleared up in time. 3. Know the risk areas. VAT refunds, foreign transactions and shareholder loans come into focus more often.
4. Appoint a single contact. During the audit one prepared person – typically the accountant – should communicate with the authority. 5. Get expert support. An experienced advisor can assess the risks before the audit and guide the company through the procedure.
This article is based on the legislation in force on the day of publication and provides general information. Please consult us before making a specific decision.
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