Tax audit

Services: Tax Audit

A tax audit, within the scope of our services, is a comprehensive independent examination of the financial and business activities of entities operating under various legal forms, including:

• tax audit of limited liability companies (LLCs);
• tax audit of individual entrepreneurs (FOPs);
• tax audit of private enterprises (PEs).

The main purpose of this process is to conduct a detailed analysis of accounting records and tax reporting in accordance with the current requirements and criteria of the State Tax Service of Ukraine. We assess a company’s activities from the perspective of the risk-based approach officially applied by the tax authorities to select taxpayers for scheduled tax audits and to monitor ongoing transactions.

Consultation: Tax Audit

If you need a professional tax audit, our services in this area begin with a consultation. This can be either an in-person meeting with a specialist at our company’s office or an online tax audit. Modern business conditions require managers to be highly mobile and make decisions quickly. Therefore, our team provides corporate tax audit services and related consulting remotely if you do not have the time or opportunity to visit our office.

An online consultation with a tax lawyer allows you to promptly discuss your company’s initial financial risks with experienced tax attorneys without spending time traveling or attending in-person meetings. By using secure communication channels and modern video conferencing platforms, you receive comprehensive legal analysis, can securely submit electronic copies of documents for expert assessment, and promptly agree on an action plan to address identified deficiencies.

Benefits of Working with Prikhodko & Partners

When conducting tax audits, the specialists at Prikhodko & Partners focus on identifying systemic deficiencies and hidden risks that most frequently lead to claims and additional tax assessments by regulatory authorities.

A tax audit conducted before an official inspection helps prevent many risks and subsequent penalties imposed by the State Tax Service of Ukraine. In providing this service, our specialists offer clients the following advantages:

• high professional competence;
• an individual strategy;
• a systematic approach to each case;
• confidentiality;
• a results-oriented approach.

Our extensive experience in tax law is a guarantee of the quality of our work.

What Does a Tax Audit Examine?

One of the key aspects of a tax audit is the analysis of the tax burden. The tax authorities continuously compare the performance indicators of individual companies with industry averages. If a company’s value-added tax or corporate income tax payments are significantly below industry benchmarks, the business automatically falls into a higher-risk category and attracts increased attention from the tax authorities.

We carefully calculate these ratios, assess the legitimacy of input VAT tax credits and deductible expenses, and help balance financial indicators within safe limits without artificially increasing tax liabilities.

When providing tax audit services, our lawyers pay particular attention to personnel records and payroll-related calculations. If a company’s remuneration levels do not comply with statutory minimum requirements or regional market averages, this may trigger an actual or unscheduled inspection by the tax authorities.

As part of the audit, we verify the accuracy of calculating and withholding:

• the unified social contribution for compulsory state social insurance;
• personal income tax;
• the military levy.

We help identify errors in pay classification, employment arrangements, and civil law contracts, enabling businesses to avoid substantial financial penalties for violations of labor legislation and payroll taxation requirements.

An important element of a comprehensive business tax audit is monitoring the completeness and accuracy of information about the company’s fixed assets. Modern automated systems used by the State Tax Service closely monitor whether a company’s available resources correspond to the scale of its business activities. A key instrument for this purpose is the notification of taxable objects or objects related to taxation, commonly known as Form 20-OPP. The Ukrainian tax lawyers at Prikhodko & Partners verify the completeness and timely submission of this form for all offices, warehouses, production facilities, land plots, and vehicles used in business operations.

In addition to the above, relationships with counterparties are currently a particularly pressing issue for Ukrainian businesses. Tax authorities use large-scale automated systems to track supply chains and identify potentially high-risk business entities.

Cooperation with a counterparty that exhibits risk indicators, fails to submit tax reports, has no employees, or participates in questionable transactions can immediately undermine the buyer’s input VAT tax credit. During a tax audit, we conduct a thorough review of your entire counterparty database using specialized analytical registers and the State Tax Service’s internal risk criteria. This enables us to identify potentially problematic business relationships in a timely manner, exclude risky transactions, or prepare a strong evidentiary basis and supporting primary documents to demonstrate that business transactions actually took place.

Why You Should Consult a Lawyer

Consultation and legal support from a specialist with expertise in this field provide businesses with numerous advantages. All analytical work and identified findings go beyond abstract observations. Following the tax audit, our specialists prepare a detailed document, which is provided to the client as a report or comprehensive legal opinion. The written conclusion clearly, systematically, and consistently outlines:

• all deficiencies identified during the audit;
• systemic accounting errors;
• potential financial threats;
• direct tax risks.

All findings are documented with references to specific provisions of the Tax Code of Ukraine and the practices applied by regulatory authorities.

Stages of Cooperation

The stages of cooperation between a lawyer and a business client include the initial inquiry, collection of relevant information, its analysis, agreement on the strategy and scope of work, and subsequent legal actions. Our lawyers follow the procedure outlined below:

Cost of Services

The cost of a tax audit is an important consideration for businesses. There is no single fixed price, as the cost of the service depends on the complexity of the company’s issues, the scope of legal work required, and the format of the lawyer’s involvement. To discuss the terms of cooperation and receive an initial consultation from our specialists, please complete the contact form on our website. A lawyer specializing in the relevant area will then contact you.

Conducting a timely internal tax review with the assistance of specialists from Prikhodko & Partners is one of the best investments in the stability of your business. We help not only correct existing errors but also establish a reliable, long-term tax compliance and risk management system capable of withstanding audits by the State Tax Service of Ukraine.

Analysis of the tax burden and industry markers

During the tax audit, the specialists of the law firm “Prikhodko&Partners” focus on identifying systemic shortcomings and hidden risks, which most often become the cause of claims and additional assessments from regulatory authorities.

One of the key aspects of the audit is the analysis of the tax burden. The tax service constantly compares the indicators of a particular enterprise with the average indicators in the relevant industry. If the level of payment of value added tax or corporate income tax is significantly lower than the average industry indicators, such an entity automatically falls into the zone of increased attention.

We calculate these coefficients in detail, assess the legality of the formed tax credit and expenses, helping to balance the indicators within safe limits without artificially overestimating tax liabilities.

Checking personnel accounting and wages

During the audit, our lawyers pay special attention to personnel accounting and accruals related to the payment of wages. The discrepancy between the level of wages at the enterprise and the established legislative minimums or average market indicators in the region is a trigger for tax authorities to conduct actual or unscheduled inspections.

The audit checks the correctness of the accrual and withholding of:

• a single contribution to mandatory state social insurance;
• personal income tax;
• military levy.

We help identify errors in pricing, registration of employment relations and civil law contracts, which allows you to avoid serious penalties for violating labor legislation and wage taxation.

Control of the material and technical base and submission of form 20-OPP

An important element of a full-fledged tax audit of a business is control over the filling and updating of data on the fixed assets of the enterprise. Modern algorithms of the State Tax Service strictly control the correspondence of the resources available to the company to the scale of its activities. The main tool of such control is the notification of objects of taxation or objects related to taxation, known as form 20-OPP. Ukrainian tax law lawyers working at the company “Prykhodko and Partners” check the completeness and timeliness of the submission of this form for all offices, warehouses, production facilities, land plots or vehicles used in economic activities.

Risk assessment of counterparties and security of supply chains

The issue of interaction with counterparties is the most acute for Ukrainian business today. Tax authorities use large-scale automated systems to track supply chains and identify so-called risky business entities.

Cooperation with a counterparty that shows signs of risk, does not report, does not have personnel or is involved in dubious transactions instantly destroys the buyer’s tax credit. During a tax audit, we conduct a deep check of the entire base of your partners using specialized analytical registers and internal criteria of the State Tax Service. This allows you to timely identify toxic relationships, eliminate dangerous transactions or prepare a solid evidence base and primary documentation to protect the reality of the business transactions.

Tax law lawyer assistance

Modern business conditions require managers to be as mobile as possible and make decisions quickly, so our team provides tax audit and related consulting services in a convenient remote format if you do not have the time or opportunity to visit our office.

Online tax law consultation allows you to quickly discuss the primary financial risks of your company with leading tax lawyers without having to spend time traveling and meeting face-to-face. Thanks to the use of secure communication channels and modern video conferencing platforms, you receive a full legal analysis, can safely transfer electronic copies of documents for expert assessment and instantly agree on an algorithm of actions to eliminate the identified shortcomings.

This format of interaction is an ideal solution for regional companies, ensures complete confidentiality, saves business resources and allows you to attract qualified legal support at any time convenient for you.

It is no less important to mention such a service as the formation of an official conclusion based on the results of the audit. All analytical work and the facts identified do not remain just abstract remarks. Based on the results of the tax audit, our specialists form a detailed official document. This document is provided to the client in the format of a certificate or a detailed conclusion. The text part of the conclusion clearly, structured and consistently describes:

• all shortcomings identified during the audit;
• systemic errors in accounting;
• potential financial threats;
• direct tax risks.

We record all this with an indication of the specific norms of the Tax Code of Ukraine and the practice of their application by regulatory authorities.

Practical recommendations and algorithms for eliminating shortcomings

The most important value of our opinion is its practical and applied focus. We do not simply state the presence of problems, but provide comprehensive, step-by-step instructions and professional advice for their effective resolution.

The company’s lawyers help in the following areas:

• develop individual recommendations for correcting errors in past tax periods by submitting clarifying calculations;
• provide algorithms for unblocking tax invoices;
• offer safe options for restructuring contractual relations with counterparties and legal methods for optimizing the tax burden.

Timely implementation of the advice set out in our opinion allows the enterprise to completely eliminate the risks of claims from the tax service, protect assets and ensure stable business development in the legal field.

Guarantee of security and stability of your enterprise

Timely internal tax re-registration with the participation of qualified lawyers and advocates of the Law Firm “Prikhodko&Partners” is the best investment in the stability of your business. We help not only to correct current errors, but also to build a reliable, long-term system of tax security that will withstand the inspections of the State Tax Service of Ukraine.

To discuss the terms of cooperation and receive an initial consultation from our specialists, fill out the feedback form on our website. After that, a lawyer of the relevant specialization will call you back.