Tax Audit

Conducted through mail correspondence between the taxpayer and the tax authority. It typically involves requests for additional information or documentation to verify specific items on the tax return.

Conducted in person by tax auditors at the taxpayer’s place of business or residence. It involves a comprehensive review of financial records, interviews with the taxpayer and their representatives, and on-site inspections.

Conducted at the tax authority’s office, based on the examination of documents submitted by the taxpayer. It involves a detailed review of tax returns, supporting documentation, and other relevant records to identify discrepancies or errors.

Selected randomly by tax authorities without any specific cause or suspicion of non-compliance. It aims to ensure fairness and impartiality in tax enforcement by auditing a random sample of taxpayers to assess overall compliance levels.

Targeted at taxpayers operating in specific industries or sectors that are known to have unique tax compliance challenges or risks. It involves specialized audit procedures tailored to the particular industry’s tax regulations and practices.

Conducted collaboratively by tax authorities from multiple jurisdictions to assess the tax liabilities of multinational corporations or taxpayers with operations in different countries. It aims to prevent double taxation.

In-depth examination of all aspects of a taxpayer’s financial records and tax returns, covering multiple tax years and various tax-related items. It involves thorough scrutiny of income, deductions, credits, and other tax-related transactions.

Focuses on specific tax issues or areas of concern identified by tax authorities, rather than conducting a comprehensive review of all tax-related items. It aims to address specific compliance risks or suspected non-compliance in a targeted manner.

Conducted in response to specific tax issues, disputes, or investigations requiring specialized expertise or procedures. It may involve forensic accounting techniques, extensive data analysis, or collaboration with law enforcement agencies.

Initial Consultation and Assessment

Data Collection and Analysis

Interviewing Taxpayer and Representatives

Examination of Financial Records

Identification of Discrepancies or Errors

Resolution
Follow-up