Tax reviews

With us you can minimize your tax risk

Businesses in Poland struggle every day with a complicated tax system, changes in the practice of applying the regulations, and high fines and sanctions for failure to comply with reporting requirements.

Tax reviews offer a remedy for these business challenges. With comprehensive examination of past and current settlements for potential irregularities, taxpayers can minimize their tax risk.

Do I need it?

For any enterprise seeking to eliminate tax risk related to errors in tax settlements.

Tax reviews can spot potential errors before a tax audit is conducted, thus avoiding tax arrears or fiscal penal liability.

Securing the financial interests of the organization may be of particular interest to:

Finance directors
Management board
Potential investors
Accounting and finance departments

When do you need it?

Periodic tax reviews are recommended when there are large numbers of individual transactions in firms lacking an internal control system. It is recommended that every business carry out a tax review at regular intervals.

The multiplicity of tax regulations, frequent amendments, and changing lines of interpretation pose real risks for correct application of current tax law. One response to business needs is to conduct a tax review using our in-house tools to check a representative sample of accounting documents.

Our support is also relevant for clients who conduct complex transactions and use various tax incentives.

The multiplicity of tax regulations, frequent amendments, and changing lines of interpretation pose real risks for correct application of current tax law. One response to business needs is to conduct a tax review using our in-house tools to check a representative sample of accounting documents.

Łukasz Kempa

Tax Director

Our Offer

Retrospective analysis of VAT and CIT settlements.

Verification of current VAT and CIT settlements.

Tax audits

A retrospective analysis consists of examining a period indicated by the client (e.g. the preceding year, half-year, or specific months) when additional transactions were noted or there was a growth in transactions not previously encountered in the firm. The resulting report will indicate transactions that could have the most serious impact on the client’s tax risk.

Possible options for analysis:

Full verification of VAT and CIT settlements.
Verification of a sample of documents using a statistical tool.

What is a statistical tool?

A method that uses weighted average and standard deviation to select from a summary of transactions the past events most materially impacting the level of tax settlements. This allows us to significant reduce tax risk with lower service fees.

And in every verification, we also examine transactions that based on our tax experts’ knowledge and experience are currently the riskiest or generate the greatest doubts.

An analysis of monthly or quarterly VAT and CIT settlements along with verification of the completeness and integrity of SAF-T files. Before filing each tax return, a report is generated to pinpoint errors or transactions that may give rise to doubts on the part of the tax authorities.

Possible analysis options:

Full verification - monthly verification of all transactions indicated in the SAF-T file or affecting the level of CIT advances. Preparation of monthly files containing an analysis of expenditures for correctness of CIT and VAT documentation.
Verification using statistical tool - monthly verification of tax settlements using a statistical tool, where the size of the sample is determined individually with the client based on a deep preliminary analysis.

In the case of current verification, we also offer the possibility to conduct correspondence with the revenue administration involving verified periods and tax returns.

“VAT procedures" tool

KR Group uses its own in-house tool for verification of VAT procedures, identifying risk areas in VAT settlements. It was created drawing on auditor’s instruments, but provides a much more detailed view of internal procedures.

We recommend this tool in particular to:

Entities that cannot carry out a traditional review due to the quantity of records.
Entities wishing to verify their internally adopted procedures, not just settlement of specific transactions.
Persons assuming supervision over VAT settlements who would like to quickly assess how secure they are for the company and themselves.
Persons seeking to eliminate or reduce to a minimum their potential personal liability under fiscal penal regulations.

This tool can also be used to verify the quality of VAT compliance services obtained by the company from other entities.

Based on this tool and the many years of experience of our tax advisers involved in the practical side of VAT, we can determine whether the settlement rules adopted within the company are safe.

This allows us to identify areas associated with tax risk within the given company, without a time-consuming analysis of individual accounting records and source documents. This process factors in the weight of each issue and the consequences of potential irregularities. This translates into conscious management of tax risk.

Currently, at a time when intense efforts are underway to tighten the VAT system, application of KR Group’s tool for verifying VAT procedures is particularly important in light of:

Personal fiscal penal liability of persons responsible for VAT settlements.
Efficiency in tax settlements, increasingly important to taxpayers.
New forms of reporting enabling the tax authorities to quickly analyse data and identify irregularities.

A tax audit is typically comprehensive and covers all types of taxes. At the client’s request, the scope of a tax audit can be narrowed.

Comprehensive examination of the correctness of tax settlements (review of accounting records for compliance with tax regulations).
Identifying areas of tax risk
Identifying tax savings.
Eliminating risks of fiscal penal liability.