Tax risk audit

A tax audit is an inspection of the correctness of the tax accounting with the aim of identifying and hedging potential tax risks arising from violation of different requirements.

We evaluate the entire business value chain as a whole and, if necessary, specific business segments or economic events.

• Special-purpose tax risk audits
• Due diligence

We identify the risks in different tax areas, including, but not limited to, corporate income tax, value added tax, wage accounting, transfer pricing and transactions with non-residents.

The exact scope of the audit depends on a combination of the client’s expectations and the recommendations of our tax advisers. For example, a due diligence is, as a rule, conducted on the order of and at the expense of the seller. The service has been designed for customers set to sell their company or a part of the company, and provides an overview of the tax aspects in the seller’s (or the target company’s) financial and taxation model. A due diligence is thus prepared for the final buyer or potential buyers.

Tax audit’s final report provides:

• an overview of the violations detected;
• an overview of the issues identified as potential tax risks;
• an assessment of the scope of tax liability in the issues identified or indicated by the client;
• recommendations for solutions and activities designed to reduce or eliminate potential tax risks.

In order to ensure the highest quality of service, the tax audits of different purposes are conducted by a team of experienced tax and legal advisers as well as authorised auditors on the basis of specially developed methodology.

The Estonian tax authority has significantly boosted the number of different types of audits and inspections. Given the disruptive effect of tax controls to every day business, and considering the high rate of interest on tax arrears, companies that have not been audited for a long period of time should weigh the option of ordering a special audit from our advisers to prevent and alleviate potential problems, taking into account the specifics and bottlenecks of their particular business model.

Should you be interested in ordering a compliance audit, please do not hesitate to contact our advisors.

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