Each on–site tax audit is a stress; there are interrogations, seizure, and demand for documents. This can end up with additional tax charges of 750 000 dollars on average.
In case of non–payment there will be a bankruptcy, collection of arrears at the expense of the personal property of the owner, director, chief accountant, and possibly criminal prosecution.
Today less than 14% of tax disputes are solved in favor of taxpayers, and the number of acquittals in criminal cases for tax crimes does not exceed 1%.
Who is at risk?
All companies conducting business activities. Including those that are sure that everything is fine with them.
The owner is not always aware of the real state of a business. The estimated profit may be just a consequence of non-payment of taxes. Not all optimization is equally useful.
The director is so passionate about «putting down fires» that, when making decisions, he is guided by the principle of «here and now», not noticing some growing risks.
The chief accountant often cannot «reach out» to the management, who is passionate about the process, and convey the scale of the disaster
How to minimize your risks?
Conduct annual tax compliance.
The principles of «Keep a pulse» and «Forewarned means armed» apply here.
Timely identification of tax risks allows you to play ahead of the curve
– to make informed management decisions, to prevent significant financial, and possibly criminal law problems.
What is tax compliance?
This is an analogue of an on-site tax audit, which we conduct using the procedures and methods of tax authorities.
An opportunity to find out what will happen and how much additional taxes and fines will you be charged if a tax audit will start tomorrow.
Experts of ANP ZENIT LEGAL, including tax lawyers, consultants, including those with experience in tax authorities, conduct a deep, comprehensive and realistic analysis of the tax accounting system and tax liabilities of the company.
If we make an analogy with medicine sphere, then this is a comprehensive survey of the company's tax health. The result of the research will be a diagnosis placed. Timely diagnosis in most cases allows you to prescribe effective treatment.
Why do you need tax compliance?
To have an objective picture of the company's tax risks, their probability and cost assessment. This is essential for the right management decisions. In boxing, the most terrible blow is the one you don't see.
To identify cases when you pay more taxes than you should. We will check whether your approach to tax accounting is too conservative, and whether you have hidden tax reserves.
What will you get as a result?
A detailed picture (report) of your current tax risks, indicating:
legal qualification of identified tax risks and their valuation;
the probability of each risk, taking into account current judicial practice;
tax overpayments, if any.
Please note that tax compliance is the identification and assessment of risks. We deliberately do not include in its cost the amount of work to eliminate the identified risks, since, without knowing the scale of the problem, it is impossible to determine the scope and possibility of treatment.
After tax compliance, we are ready to develop and implement a set of measures aimed at reducing the identified risks - the so-called defense file in key areas for your company.
Who is interested in tax compliance and when?
When the management of the company is changed;
When merging with another company or buying a business. You will not buy a car without looking under the hood;
If you want to build your business for years ahead and have an adequate picture of the world;
If you realize that the tax function is an important element of the viability of your business;
If you do not want to risk your property because of someone else's mistakes.
When changing the chief accountant /CFO;
When waiting for an on-site tax audit to understand the scale of the problem and develop a further strategy;
When realizing that he is responsible for everything that happens in the company;
If he wants to make timely management decisions based on adequate information;
If he doesn’t want to be brought to criminal responsibility and risk his property for mistakes that he doesn’t know about.
When he understands the risks, but cannot convey them to the general manager in any way;
In an effort to identify personal risks and protect himself from the negative consequences of a tax audit;
If you want to get an expert opinion in case of conflicting practices.