Tax Audit

Specifically, our work involves verifying the accuracy of our Clients’ tax settlements across the following areas:

• Value Added Tax (VAT)

• Corporate Income Tax (CIT, including the withholding agent function)

• Personal Income Tax (PIT, including the employer/payroll withholding function)

• Tax on Civil Law Transactions (PCC)

• Real estate tax and other local taxes and fees

The audit can also cover other public-law liabilities of our Clients. Based on Client requirements, the tax audit can be restricted to specific tax areas.

To identify material irregularities and tax risks, the work performed during a tax audit is divided into two phases: a general review and a detailed examination.

The objective of the general review is to diagnose the accounting policies and documentation rules applied by our Client for business transactions, as well as to identify transaction types and areas where tax-related issues may arise. The general review specifically includes:

• Analyzing our Client’s legal status (including corporate documents and all types of agreements) regarding their impact on taxation

• Reviewing accounting documentation and commercial agreements governing relationships with suppliers and customers

• Conducting interviews with the Client’s personnel

The detailed examination involves analyzing source documents to assess the correctness of their tax treatment. The scope of the detailed examination is defined based on joint agreements with our Client to ensure the audit fulfills its objectives effectively. Examinations are carried out using targeted and random sampling as well as analytical reviews of accounting records—or, upon the Client’s request, using a full sample test method.

The result of our work is a written final tax audit report, which contains:

• A description of identified tax settlement irregularities

• Identification of areas subject to high tax risk

• Recommendations for potential actions to mitigate or eliminate tax compliance risks

The fee for conducting a tax audit is determined individually, taking into account the complexity and labor-intensive nature of the planned scope of work.