Tax audits of an entrepreneur

Tax checks of the entrepreneur are mandatory, but quite unpleasant for the accountable person, because the risk of detecting some distortions and errors is large enough. And every legal person should clearly know their rights and duties and remember that ignorance does not absolve from responsibility.

Tax audits of an entrepreneur can be conducted only once a year, and during the last three months at the end of the calendar year. In case of violation of any rights, the entrepreneur can apply to the judicial authority for the restoration of justice. However, a second inspection is considered to be such only if it is carried out for one type of tax and for the same period. Tax audit of the firm can be exit and cameral. The duration of the field visit is about two months, and the period for internal review should not exceed a month.

Of course, any rule presupposes exceptions. So, the time allotted for verification can be increased if:

• Individual entrepreneurs have separate units;
• Error information is found, which requires additional verification procedures;
• The client's documents were not delivered on time or in full;
• There were unforeseen circumstances, for example, fires, natural disasters and so on.

In this case, you can expect to extend the period to four months and even six months. And at the end of the check, the tax official must return all the original documents of the firm handed over to him earlier. If the on-site inspection was carried out on the territory of the individual entrepreneur himself, he should check that all the participants of the audit leave his property.

In practice, often accountable people do not have time to prepare all the papers for verification. As an exit from the situation, you can try to agree with the tax authority on its transfer to a later date. Of course, the final answer depends entirely on your reputation and personal attitude to the head of the firm. As a rule, it is allowed to postpone the period within one quarter, since this does not require a serious adjustment of the schedule, which is set in advance.

Tax inspections of the entrepreneur can be postponed to other times only if there are serious reasons, for example, leave or the hospital chief accountant. This is indeed considered a good reason, as throughout the audit the tax service directly contacts specifically with the chief accountant. Many enterprises are going to a little trick. For example, if the documentation is not at all ready to be handed over to a tax inspector, the manager can decide to send an accountant on vacation or on a business trip. Thus, he wins the time for full preparation. To do this, the entrepreneur sends a letter of request to the tax authority explaining the reasons and presenting the evidence.

The tax audit of the enterprise must be justified by certain documents. So, the inspector is obliged to present simultaneously two documents:

1. A certificate that allows verification.
2. Permission for a specific inspection.

In the event that only one document is provided, the head of the organization has the right to refuse the inspector and not submit the required documents. This action will be fully justified and should not be taken as disrespect or resistance to the law.

Tax inspections of the entrepreneur are mandatory, so cooperation with the inspection is welcomed. Any impediment can be regarded as resistance to the acts of the current legislation. Then the tax service has the right to apply to law enforcement agencies for help, and the check will be forced.