Legal support of tax audits

Types of Tax Audits

Tax control is carried out in several forms, each of which is regulated by separate provisions of legislation and has its own procedural specifics:

• Scheduled audits. Any scheduled tax audit is conducted exclusively in accordance with the clearly approved annual schedule of the State Tax Service. A company can learn about the inspectors’ visit in advance through official portals, which provides time for a thorough assessment of the state of accounting. Scheduled and unscheduled audits differ significantly in terms of notification periods, since the taxpayer must be informed about a scheduled audit no later than 10 days in advance.
• Unscheduled audits. They are conducted without prior inclusion in the general schedules of the State Tax Service if there are clearly defined legal grounds. A complaint from a counterparty, identified inconsistencies in submitted reporting, or a voluntarily submitted application for reorganisation of the enterprise may serve as grounds for an inspection.
• Desk audits. They are conducted remotely, directly at the premises of the tax authority. The basis for analysis consists exclusively of the data contained in declarations and calculations submitted by the company, as well as information from state automated accounting systems.
• Actual audits. This type of audit is characterised by the fact that it is carried out at the place where the taxpayer directly conducts business activities (for example, at production facilities, retail outlets or warehouses) for the purpose of operational control over cash circulation, licensing, the availability of cash registers, and the official employment of hired workers.

These are the key types of tax audits.

Preparing a Business for an Audit

Preventive protection and building a corporate security system are the most reliable ways to undergo an audit without financial losses. Professional preparation of primary documentation for an audit includes the thorough collection and systematisation of all necessary acts, consignment notes, agreements and supplementary agreements.

At the same time, lawyers conduct a comprehensive audit of tax risks before the inspection, which makes it possible to identify weaknesses in accounting in advance, correct methodological or arithmetic errors, and formulate a legal position regarding questionable transactions with counterparties. An important part of this stage is psychological and legal briefing of personnel and the chief accountant regarding interaction with inspectors of the State Tax Service.

Advantages of Cooperation with “Prikhodko & Partners”

Among the key advantages that the team of the “Prikhodko & Partners” Law Office provides to clients, the following should be highlighted:

• practical experience, reflected in the fact that our lawyers have many years of experience in resolving the most complex financial disputes in Ukraine and have an excellent understanding of the internal operating procedures of the State Tax Service;
• individual contractual terms, thanks to which we create a personalised package of services tailored to the specifics of your activities and the scale of your business, clearly setting out the obligations of the parties;
• absolute confidentiality, since comprehensive support during tax audits provided by our company guarantees the protection of trade secrets, databases and the client’s financial information;
• legal security of the client, as we fully take over communication with the State Tax Service, neutralising any administrative and psychological pressure on your personnel, allowing management to focus on running the business.

Thus, the specialists of the “Prikhodko & Partners” Law Office know how to help a client’s business withstand pressure from tax authorities and protect its rights.

Legal Support During an Audit

The presence of a lawyer at the enterprise during a visit by representatives of the State Tax Service fundamentally changes the course of the entire procedure. Direct support during audits begins with a detailed analysis of the legality of the grounds for commencing them: the lawyer carefully checks the audit referral, official identification documents of the inspectors and a copy of the order appointing the control measure.

The constant presence of a lawyer during the audit ensures strict control over the actions of State Tax Service officials and eliminates the possibility of unlawful seizure of original documents or computer equipment. Properly organised interaction with the tax authority during the audit helps to promptly respond to inspectors’ requests strictly within the limits of current legislation and immediately record any procedural violations by tax officials, which may later become the basis for cancelling the results of the audit.

Actions After Receiving the Audit Report

If inspectors identify violations as a result of the control measure, they prepare an official tax audit report in which they record their conclusions. The taxpayer has the full right to disagree with the content of this document. Our specialists promptly prepare and submit substantiated objections to the audit report, which makes it possible to refute the conclusions of the State Tax Service even before an official decision on penalties is issued. The procedure requires strict compliance with the time limits. The documents must be submitted to the controlling authority within 10 business days from the day following the date on which the audit report was served.

If the objections were not taken into account and unlawful additional tax liabilities were assessed, the next step is an administrative or judicial appeal against the tax notice-decision (TND). Lawyers develop a strategy, represent the taxpayer’s interests before higher authorities of the State Tax Service and, if necessary, carry out an effective appeal against tax authority decisions in the administrative court, achieving the complete cancellation of unlawful financial sanctions.

Cost of Legal Services for Tax Audit Matters

The final budget for professional legal assistance is calculated individually for each specific case. The cost of services directly depends on the overall complexity of the circumstances in which the specialist must work, the total scope of analytical and practical involvement required from the lawyer, and the number of necessary actions within the legal support. Therefore, standardised approaches do not work in such matters, and the terms are agreed upon based on the specific circumstances of the case.

To find out the terms of cooperation taking into account the circumstances of your case, fill out the feedback form on the website, after which a lawyer specialising in the relevant field will contact you.