Increase in corporate investigations in 2022

The recent annual report shows that the Internal Revenue Service has seen an increase in the number of corporate examinations in 2022 compared to 2021. How can you ensure that a tax audit goes smoothly?

Pre-announced

Unless it is a direct on-site observation or an FIOD raid, you will receive written notice from the Tax Administration prior to the tax audit. This will state which years will be audited and possibly which specific items.

What should you prepare?

You will also receive a list of books and documents that the inspecting official wishes to see at the beginning of the investigation. Important: there is no obligation to show opinions from your accountant or tax advisor.

During the tax audit

On the day of the audit, an introductory meeting first takes place. During this, the auditor mainly informs himself about your company and the administrative procedures. Tip: Even if you choose to remain in the background during the audit, it is advisable to be present at this meeting. Also ask about the expected duration of the audit.

Separate room

It is important to provide a separate space for the controller to avoid unnoticed conversations between your employees or with customers. Choose a strategic location where the controller needs to be on the shop floor as little as possible.

Staff instructions

Inform your employees in advance of the inspector’s arrival and ask them to exercise restraint:

• Tip 1: Agree who within your company can answer questions from the auditor, for example your administrator or bookkeeper.
• Tip 2: Have copies of required documents made by your secretary, for example, so that you have exactly the same information.

Save questions

Agree with the auditor that he will submit his questions to your administrator or bookkeeper on a daily basis, for example before he leaves and preferably in writing. This gives you the opportunity to discuss the questions with your advisor, if necessary, and provide a well-thought-out answer the next day.

Interim meeting

If possible, schedule an interim meeting. Here any misunderstandings can be rectified before they possibly take on a life of their own (on paper).

After the tax audit

A wrap-up meeting follows at the end of the audit. Request the draft audit report in advance and discuss it with your advisor. This will allow you to introduce any counterarguments during the final interview.

Final Report

Ensure that all audited cases are included in the final report, even if no corrections are required. This prevents possible corrections by the Inland Revenue in later years.

Need help?

Want more information or tips on preparing for and handling tax audits? Our team will be happy to tell you more about the steps and questions you will face during such an audit. You can contact us at +(31) 71 8906066 or at info@vanzaken.nl.

Bron: Tips & advies