Adam Radomski
Business Development Executive
Entrepreneurs in Poland face a complex tax system on a daily basis, with frequent changes in the interpretation of regulations and high penalties and tax sanctions for failure to meet reporting and disclosure obligations. In such conditions, tax reviews and tax audits become an indispensable support tool for companies, enabling them to identify tax risks and irregularities in tax settlements.
Tax reviews – for whom?
The tax review and VAT tax audit offer is aimed at every entrepreneur who wishes to eliminate tax risk. Professional tax reviews and accounting audits enable the verification of potential tax and accounting errors prior to a tax audit, thereby allowing companies to avoid payment of tax arrears, fiscal sanctions and criminal-fiscal liability.
Those particularly interested in safeguarding the financial interests of the entity may include: chief financial officers, management boards, potential investors, and accounting and finance departments.
Tax reviews at KR Group
The multitude of tax regulations, their frequent amendments and changing interpretive lines create real risks in terms of tax compliance and the correct application of current tax law. The response to these business challenges is to conduct a professional tax review using our proprietary audit tool, with which we examine a representative sample of accounting documents and transactions.
Through comprehensive verification of past and current settlements, companies can effectively minimise tax risk, ensuring full compliance with applicable tax regulations and protection against financial sanctions, fiscal penalties and management liability.
KR Group’s support will also prove invaluable for clients conducting complex financial transactions, using various types of tax preferences and reliefs, and companies seeking solutions in the area of tax planning and accounting audit and outsourcing.
Tax reviews – KR Group offer
Retrospective analysis of VAT and CIT settlements
Possible analysis variants:
- Full verification of VAT and CIT settlements.
- Verification of a document sample using a statistical tool.
Verification of current monthly VAT and CIT settlements including a check of the completeness and integrity of the JPK file
- Full verification – monthly verification of all transactions indicated in the JPK file or affecting the amount of the CIT advance payment. Preparation of monthly files containing an analysis of expenditure in terms of the correctness of documentation for CIT and VAT purposes.
- Verification using a statistical tool – monthly verification of tax settlements using a statistical tool. The sample size is determined individually with the client on the basis of a prior in-depth preliminary analysis.
In the case of current verification, we also offer the possibility of conducting correspondence with the tax administration within the verified periods and prepared declarations.
"VAT procedures" tool
At KR Group we use a proprietary VAT procedure verification tool, designed to identify risk areas in the field of VAT settlements. It was modelled on audit tools, but provides a significantly more detailed view of internal procedures.
We particularly recommend this tool to:
- entities for which a traditional settlement review is not feasible due to the volume of records;
- entities that would like to verify their internally adopted procedures, rather than merely the settlement of individual transactions;
- individuals taking over supervision of VAT settlements who would like to quickly assess their safety for the company and for themselves personally;
- individuals who wish to eliminate or maximally reduce their personal liability arising from criminal fiscal regulations.
Additionally, the tool can be used to verify the level of VAT Compliance services purchased by the company from other entities.
Based on the tool and the many years of experience of our tax advisors, who deal with the practical aspects of VAT, we are able to examine whether the settlement principles adopted by the company are safe.
This allows us to identify areas associated with tax risk in a given company without a time-consuming analysis of individual accounting entries and source documents. The identification takes into account the significance of a given issue and the consequences of any irregularities, which translates into informed tax risk management.
Currently, in an era of very intensive tightening of the VAT settlement system, the use of the KR Group VAT procedure verification tool is particularly important due to:
- the personal criminal fiscal liability of persons responsible for VAT settlements;
- the increasingly important efficiency of tax settlements for taxpayers;
- new forms of reporting, enabling tax authorities to quickly analyse data and identify irregularities.
Tax audits
A tax audit is generally comprehensive in nature and covers all taxes. At the client’s request, the scope of the tax audit may be narrowed.
- Comprehensive examination of the correctness of tax settlements (review of accounting documentation for compliance with tax regulations).
- Identification of tax risk areas.
- Identification of tax savings.
FAQ
What is a tax review?
A tax review is an in-depth analysis of a company’s tax settlements, aimed at identifying tax risk, verifying the correctness of the application of tax regulations and ensuring tax compliance.
Why is it worth using a tax review?
A tax review enables entrepreneurs to identify potential tax threats and irregularities in settlements at a stage preceding an inspection by the tax authorities.
Who should use a tax review?
A tax review should be used by companies that handle a high volume of transactions or carry out complex processes. However, this is not the only group that should be interested in this service. It should be used by every company that is active on the market and wants to have confidence in its activities in the areas of CIT, PIT, VAT and accounting. A tax review also provides management boards and chief financial officers with reliable information that supports further informed and secure business decision-making.
What is a retrospective analysis of VAT and CIT settlements
A retrospective analysis involves the examination of a specified period (e.g. the preceding year, half-year or specific months) during which additional transactions were recorded, or an increase in transactions not previously present in the company’s settlements.
The resulting report identifies transactions that may have the most significant impact on the tax risk incurred.
What is the statistical tool we use for document sample verification?
Our statistical tool is a method that, using weighted average and standard deviation, selects from the transactions indicated in aggregate those past events that most significantly affect the level of tax settlements. In this way, at a lower service cost, we are able to significantly reduce the tax risk incurred.
In every verification we also examine transactions that, according to the knowledge and experience of our tax experts, are currently the most risky or raise the most doubts.
What is the verification of current monthly VAT and CIT settlements?
Analysis of monthly or quarterly VAT and CIT settlements, including a check of the completeness and integrity of the JPK file. Prior to the submission of each tax return, a report is prepared identifying errors and transactions that may raise doubts with the tax authorities.
