Tax audit is the process of analyzing historical data from tax returns, which has several objectives
Determining the (ir)regularity of operations and potential timely corrections.
This is a common and important motivation for a tax audit. All entities are subject to error, and to correct anerror is often cheaper if done on your own initiative, rather than when the error is noticed during the tax control procedure.
Identifying potential hazards in purchasing / taking over a company, as well as in entering into long-term partnerships with assuming corresponding obligations of the observed subject.
This is also a common motive for tax audits, especially in circumstances where a large number of companies are not particularly fastidious in their obligations to the state. In such situations, when buying a business, in addition to the assessment of its value, it is necessary to carry out a tax audit in order to identify possible adverse financial effects of previous operations. It is a fact that the tax legislation leaves room for the legislator to subsequently determine the tax liability to the period of limitation of the right to assess and collect taxes, and that a change in administration and ownership does not deprive the entity of obligations that may arise in the process of control, so it is of paramount importance to perform a tax audit when purchasing a business, in order to identify potential financial risks.
Detecting violations of tax and tax crimes.
Business entities are often in a need of the tax audit, either in case of a change in management, or in other circumstances where there is a need to review the actions of management, or even for the purpose of defense before the investigating authorities. In all of these cases we act in an objective and impartial manner in order to determine the actual tax burdens of the past, in order to provide clients with the assurance of specific risks and identify potential liabilities that haven’t been correctly calculated in the past.