Its scope and level of detail always dependent on its duration, an audit covers transactions and documents (invoices, contracts, etc.) revealed in the account books of a given entity and picked for verification by the client or our auditors. The audit can also cover so-called ‘general documents’ associated with the client’s financial settlements (declarations, decisions issued by tax authorities, etc.), and documents which our experts recommend for inclusion in order to achieve a complete picture as regards tax settlements. In addition, the audit may cover economic events, their types selected either by the client or the auditors, along with the related evidentiary documentation (invoices, contracts, etc.).
During the audit, the client receives an up-to-date info on all irregularities as well as suggestions on tax optimisation. The audit is summarised with a report listing all irregularities found, including an evaluative description of associated risks. The report offers recommendations on how to deal with the irregularities and suggestions on how to proceed next.
PIT-focused audit
Worth addressing are the issues linked to the taxpayer’s functions in cases where cash and non-cash (also gratuitous) benefits are provided to employees.
What do we offer?
- analysing the correctness of revenue recognition (revenue amount), the moment or absence of revenue – in the case of benefits for employees, contractors, members of Management and Supervisory Boards, business partners (gifts) – benefits in cash and in kind, gratuitous benefits
What’s in it for the Client?
- tax security in terms of the Company’s liability as a payer of personal income tax
- the option to perform a legally valid rectification of errors in previous tax returns and avoid liability in this regard
Audits with respect to the settlement of in-kind and gratuitous benefits – CIT, PIT, VAT
What do we offer?
- Examining the possibility of classifying certain expenditure categories as tax deductible expenses
- Verifying whether it is possible to deduct input tax on the purchase/creation of benefits and analysing the correctness of the tax due in this respect
What’s in it for the Client?
- Tax security in terms of the Company’s liability as a payer of corporate income tax (the correctness of revenue recognition)
- The option to perform a legally valid rectification of errors in previous tax returns and to avoid liability in this regard
Audits with respect to the correctness of withholding tax settlements (audits covering the PIT and CIT Acts)
What do we offer?
- Examining whether withholding tax was correctly deducted
- Verifying the applicability of exemptions from the obligations imposed by the Act (i.e. whether the conditions for being exempt have been met), and exemptions from double taxation agreements
- Analysing whether recording obligations are correctly fulfilled
What’s in it for the Client?
- Tax security in terms of the Company’s liability as a payer of corporate/personal income tax
- Tax security in terms of the Company’s liability as a payer of corporate income tax
- The option to perform a legally valid rectification of errors in previous tax returns and to avoid liability in this regard
Audits with respect to the analysis of tax effects brought about by “aggressive marketing”
What do we offer?
- Support from accounting services in contacts with the trade & marketing division
- Examining potential risk areas such as loyalty programmes, promotions, competitions, bonus-based sales, promotional gadgets and other gifts
- Evaluating the nature of incurred expenditures on the grounds of settlement of income taxes (representation/advertisement)
What’s in it for the Client?
- Support from accounting services in contacts with the trade & marketing division
- Tax security in terms of the Company’s liability as a payer of personal income tax
- Tax security in terms of the Company’s liability as a payer of corporate income tax
- The option to perform a legally valid rectification of errors in previous tax returns and avoid liability in this regard
Audits of intangible services
What do we offer?
- Examining the validity of incurred expenditures, the adopted expenditure recording method, and the necessity to apply withholding tax
- Verifying the grounds for setting up an establishment
- Assessing whether expenditures were correctly classified as tax deductible expenses
- Assessing whether expenditures incurred for intangible service expenditures were correctly settled with respect to VAT
What’s in it for the Client?
- Tax security in terms of the Company’s liability as a payer of corporate income tax
- The option to perform a legally valid rectification of errors in previous tax returns and avoid liability in this regard
- The confidence of having correctly calculated costs and revenues in connection with the possible setting up of a foreign establishment of the Company
Rolling-stock policy
What do we offer?
- Drafting the terms of use of company vehicles (for business and private purposes)
- Formulating the rules of revenue recognition and settlement (CIT/PIT)
- Clarifying the rules of deduction of input tax (and, where appropriate, the charging of due tax)
What’s in it for the Client?
- Tax security in terms of the Company’s liability as a payer of personal income tax
- The confidence of having correctly settled the use of company vehicles
Audits with respect to the correctness of settlement of excise tax
What do we offer?
- Checking and verifying whether excise tax is correctly settled
- Examining the validity of applying excise tax exemptions
- Performing audits on respective settlement periods or areas selected by the client – this may include the verification of whether correct excise rates are applied or whether the client meets their obligations arising from being a holder of a specific excise permit
What’s in it for the Client?
- Auditing allows you to enhance the security of your excise tax settlements in that it provides the possibility to identify potential threats before they are detected by tax authorities
- A summary report will outline all areas of tax risk, indicating the exact method of how to correct any irregularities found in the course of the audit. The client therefore receives a ready-made solution which they can deploy on their own
Audits aimed to detect the risk of participating in a tax fraud
What do we offer?
- Examining trade relations with key suppliers and customers
- The analysed aspects of cooperation include the manner in which relations were established, the concluded contracts, the negotiation process, diligence in verifying the credibility of a business partner, the extent to which a taxpayer exercises control over goods (services), and other circumstances relevant in view of the decisions issued by courts and authorities
- Analysing documents; interviewing (during simulated hearings) of the taxpayer’s employees (members of the Management Board, trade and warehouse staff, drivers)
- Analysing the aspects of due diligence in the trade of goods and services
What’s in it for the Client?
- The possibility of detecting, before tax authorities, transactions which may potentially be under threat
- The possibility of identifying the “worst-case scenario” before it unfolds and deploy appropriate preparatory measures across the entire organisation
- The adoption of preventive measures: collecting documentation to confirm the legitimacy of transactions and making necessary corrections; providing the company’s key individuals with protection against criminal charges; devising solutions which will allow the company to continue with its business operations
