What is a tax audit?
Tax audit is an investigation of the background of the tax return submitted by an individual or the company to the tax agency. The idea of a tax audit usually evokes feelings of anxiety even in persons who believe that their tax documents are perfectly fine. Although it is true that the tax audit can be called due to a perceived discrepancy in one or more revenues, it is also true that the audit can be simply performed as part of random sampling.
Most governments around the world include an agency that is charged with a process of tax collection from individuals and companies that have in jurisdiction. For the most part, the agency focuses on defining processes associated with calculation and paying taxes. However, most tax agencies also commonly control tax returns in the process of axle of minor errors that may be present at any given return.
In the review process, tax agencies can use a random selection policy for several R Returns for audit. IfThis is, usually there are no repressive measures. The taxpayer simply brings copies of the revenue for the quoted period, together with the supporting documentation and meets the tax agency representative. If all deductions and earnings can be supported by documentation, this is considered complete.
, however, can also be carried out if the tax agency finds a reason to assume that the deductions are not permissible or if there has been a deliberate attempt to hide the earned income. In the case of this, the government will often require a tax audit that clarifies and irregularities. If the taxpayer can provide evidence that the initial return has been completed and correct, then everything is fine. If the tax agency finds that the deduction is not allowed, the return is recalculated and interest sanctions may apply.
While the tax audit is normal to the routine, it has gained the reputation of being for the taxpayer Exthe nerve process. However, many government tax agencies are trying to make the tax audit process as comfortable as possible for all parties.