Control of Tax returns

In recent years, the Revenue Service has implemented robust declaration control procedures, minimized the instances of direct tax audits, and escalated the number of audits resulting from declaration control. In line with the operational plans outlined by the Revenue Service's Audit department a substantial portion of their resources will be consumed to the scrutiny of declarations.

Declarations control service implies the ongoing audit of all necessary declarations in accordance with the client's obligations. In particular, after the end of each month, before the time of submission of declarations (until the 15th), the correctness of the tax declarations prepared by the client is checked. Taxpayer, which was assigned the rank of medium category by Revenue servicec expected to have high risk.

In which cases is it necessary to control declarations?

• When the business has interest of insuring tax risks of the current period
• When there is a reasonable doubt that mistakes have been made in accounting
• When the business is interested in the exact amount of tax liabilities
• During the changing process the materially responsible person or manager

Loialte's declaration control process includes the following stages:

• All information on the payer's page on the RS portal is processed
• The correctness of accounting of operations in the accounting software is checked
• In case that accounting is not performed correctly, we inform the client about the mentioned deficiencies in order to correct them
• If there are defects in the declaration, the client will be notified in writing in order to eliminate the defects
• When the detected deficiencies are eliminated and the client company confirms this to us, the declarations are re-checked and the client is notified that the declarations have been verified and can submit them.

If Revenue Service activate any of the declarations control mechanisms, we will support the client to communicate properly so that an audit is not initiated by the Revenue Service.

Teona Kunchulia [email protected]

Associate partner - Tax direction