Current tax legislation envisages three types of tax audits: cameral, documentary and factual. In addition, documentary audits can be planned (routine) or unplanned (extraordinary), indoor or off-premise.
Cameral audit is carried out in the tax inspection’s office and only on the basis of information contained in tax declarations.
During the documentary audit, inspectors exercise control over timeliness and completeness of the calculation of the taxes and fees, compliance with currency legislation, regulating labor relations with employees.
The planned inspection is conducted only in accordance with the schedule of inspections at intervals determined by the Tax Code of Ukraine.
Unplanned documentary inspection can be made if there are grounds defined by law, in particular failure to submit a tax return in due time, finding of possible violations during inspections of other taxpayers, detection of unreliable data in declarations, in case of liquidation or reorganization of the entity so on.
The factual audit relates to compliance with the order of cash transactions, the availability of the necessary certificates, licenses, patents, including the production and circulation of excise goods, as well as compliance with the law by the employer of labor relations with employees, an employment contract.
The factual audit is carried out without warning of the taxpayer, under the decision of the head of the local tax office or in case of circumstances defined by Tax Code.
While the cameral audit is often not at all noticeable to taxpayers who maintain accounting records properly, and while there is always an opportunity to prepare for a planned audit, the unplanned documentary audit, and especially the factual inspection may be an unpleasant surprise for the management and the working staff.
Undoubtedly a positive decision of the Ukrainian government was to establish a moratorium on tax audits of small businesses over the years 2015-2016. But the fiscal pressure of control authorities on all other companies still essential.
In this situation, taxpayers can only rely on professional preparation for audits and legal support. Because of this, it is necessary to use the services of lawyers who have sufficient experience with this kind of problem.
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