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Importance and Composition of a Tax Audit for the Past Period
A tax audit of the past period is a crucial process for any company. Here are the reasons why it matters and what it involves:
Meaning:
- Risk identification: a tax audit enables a company to identify potential tax risks stemming from past operations.
- Ensuring compliance: it ensures the company is fully compliant with relevant tax laws and regulations.
- Financial stability: the audit helps prevent unforeseen financial obligations by addressing any issues stemming from improper tax practices.
- Reputation Protection: regular tax audits demonstrate the commitment of the company to fulfilling its tax obligations responsibly.
- Optimization Opportunities: audits can uncover areas where tax optimization is possible, within the law frame.
Scope:
A tax audit of the past period typically includes the following components:
- Overview of financial documentation: a thorough review of all relevant financial records, such as accounting books, invoices, and expense reports.
- Analysis of tax returns: a revision of all tax returns submitted during the past period to verify their accuracy and completeness;
- Internal control assessment: evaluation of the internal tax processes of the company and control mechanisms.
- Legislation compliance check: comparison of current and past operations with relevant tax laws.
- Risk assessment: identification and evaluation of potential tax risks, along with an analysis of their potential impact.
- Development of recommendations: based on the audit results, we provide tailored recommendations to address identified issues and prevent future occurrences.
Types of Audits:
We offer both comprehensive audits and specialized audits based on individual requirements:
- Complex Audit: this includes a thorough examination of all types of taxes simultaneously.
- Audit of Individual Taxes:
- Income Tax
- Value Added Tax (VAT)
- Profit Tax
- Property Tax
- Excise Duty
- Customs Duties and Fees
- Frequency of Audit Services
We offer audit services at varying frequencies, tailored to the specific needs and requirements of your business:
- Monthly audit: regular, monthly checks provide ongoing oversight and enable prompt response to any emerging issues.
- Quarterly audit: a quarterly audit offers a periodic review of your tax situation, ensuring that potential concerns are addressed in a timely manner.
- Annual Audit: an annual, comprehensive audit thoroughly reviews the entire tax performance of your company for the year.
The MAVEN team conducts a detailed analysis of all these aspects, ensuring that your company maximizes the benefits of the tax audit for the past period.