Adam Radomski
Business Development Executive
The variability of tax regulations and the growing number of reporting obligations mean that the risk of initiating an audit or tax proceedings has become an inherent element of running a business. Meanwhile, it is the companies themselves that bear the obligation to calculate the amount of the levy, complete the necessary documents and pay the taxes for a given period. However, it does happen that tax authorities have doubts regarding these settlements and may initiate a tax audit.
Tax proceedings and tax audits – for whom?
A tax audit may cover any company regardless of its size. The purpose of an audit is to detect any errors, irregularities or tax arrears. In the event of an audit being initiated, it is worth seeking professional assistance from specialists – KR Group experts are at your disposal.
Tax proceedings and tax audits at KR Group
The purpose of a tax audit is to verify whether the audited parties fulfil their obligations arising from tax law. The role of the authorities is to verify compliance with tax regulations and to check whether the taxpayer has correctly documented events and activities subject to tax obligations. A tax audit may also involve verifying whether the audited party correctly exercises its tax entitlements. During this process, various types of transaction documents and accounting documents are analysed, hearings are conducted and physical evidence is secured. Tax authorities are not always obliged to provide prior notice of their intention to initiate an audit.
Tax proceedings and tax audits – KR Group offer
- Comprehensive support during a tax audit and tax proceedings.
- Preparation of applications for tax rulings.
- Analysis of company documents, verification of settlements.
- Representation of the client during a tax audit/tax proceedings.
- Liaising with first and second instance tax authorities.
- File a complaint regarding decisions issued by tax authorities.
- Implementation of an Audit Contingency Procedure in the Company.
FAQ
What is a tax audit?
A tax audit is a process conducted by tax authorities (the head of the tax office, the head of the customs and fiscal office, the town mayor, city president, the county head, starosta or the marshal of the voivodeship, aimed at verifying the correctness and compliance of tax settlements with applicable regulations.
Will I receive information about a planned tax audit?
The first instance tax authority competent for a given entity provides information about a planned tax audit. The audit is initiated no earlier than 7 days and no later than 30 days from the date of delivery of the aforementioned notice. There are, however, exceptions in which the tax authorities may initiate an audit without prior notice.
Which authorities are authorised to conduct a tax audit?
The tax, customs and fiscal institutions forming the National Revenue Administration (KAS) constitute the central body responsible for fiscal and customs administration matters in Poland. Since its establishment in 2017, KAS has been conducting tax audits regularly and effectively.
The village mayor (town mayor or city president) is also authorised to initiate a tax audit. The village mayor is the first instance tax authority in matters of local taxes and charges (including real estate tax, agricultural tax and forest tax).
Can I protect myself against the consequences of a tax audit?
Yes! The safest method is to maintain ongoing cooperation with a tax advisory firm such as KR Group, which regularly verifies the compliance of documentation with current regulations. In the event of uncertainty regarding settlements, it is worth considering obtaining an individual tax ruling.
What is an individual tax ruling?
An individual tax ruling is an official position issued by tax authorities that allows a taxpayer to obtain certainty regarding the application of tax law provisions in specific situations. It serves as a safeguard in the event of a tax audit.
