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Federal Tax Service has disclosed particular details of tax audits

Federal Tax Service has disclosed particular details of tax audits

In March 2018, the Federal Tax Service issued a letter explaining disputable questions arising in course of tax audits.

1. If errors or discrepancies are revealed during desk audit, the inspection is obliged to send a request for explanations. However, it is not clear whether the violation of this duty can constitute a basis for canceling the results of the audit.

2. If the report on detected violations was not sent within the prescribed time, this does not imply that taxes had been calculated correctly and paid timely. It is specified that violation of the deadline for preparing and sending a report or an act does not necessarily mitigate the responsibility .

In addition, violation of deadlines for desk or field audits does not entail unconditional cancellation of the results. If this is the only reason for challenging the decision of the authorities, it is almost impossible to succeed.

3. Supreme tax authority has the right to cancel or alter decisions of the lower-level tax authorities in the case these decisions are not in line with tax legislation. It can be done within three years after the end of the audited period.