Tax advisor assistance in a tax audit – what can you count on?

Preparing for a tax audit

A tax audit usually begins with a notice of intent to initiate the audit. From that point onwards, a tax adviser can assist with several key aspects:

• document review – checking accounts, tax returns and other documents for completeness and compliance with regulations. They help prepare a set of materials covering only the period and scope specified in the notice.
• identification of risks and potential errors – if the adviser identifies any shortcomings, they may recommend submitting a corrected return even before the audit formally begins.
• preparation of an action strategy – develops a plan of action for dealing with the authority, establishes the method of communication and the scope of information to be provided.
• briefing on rights and obligations – explains to the business owner their procedural rights and obligations towards the authority, including the rules for providing documents and the option of appointing a representative.

This ensures the business owner enters the audit prepared and aware of their rights and the authority’s limitations.

Support during the audit

During the audit itself, the adviser may act as a representative, representing the business owner before the tax authority. Their tasks include:

• representation and communication with the authority – conducting discussions with inspectors, submitting documents and providing explanations.
• overseeing the legality of proceedings – ensuring that the audit remains within the scope and timeframe specified in the authorisation, and that the authority acts within the bounds of the law.
• assisting in the preparation of explanations and evidence – drafting letters, applications and statements, and presenting arguments and evidence in the entrepreneur’s favour.
• monitoring of deadlines and formalities – ensures that no deadlines are missed and that proceedings are properly recorded.

The presence of an advisor helps to minimise procedural errors and ensures that the audit is conducted within the bounds of the law.

Actions following the inspection

Once the inspection activities have concluded, the authority draws up a report, to which the business owner may raise objections within 14 days. At this stage, the advisor:

• analyses the content of the report and explains its implications;
• drafts objections or clarifications, pointing out the authority’s errors and presenting evidence;
• advises on whether to amend the tax returns or defend the current position;
• represents the business in any tax or appeal proceedings – right up to lodging a complaint with the administrative court, if necessary.

The adviser can also assist with post-audit activities, such as implementing the authority’s recommendations, applying for payment by instalments or deferral of payment, and, if necessary, preparing a voluntary disclosure.

Summary

The assistance of a tax adviser during a tax audit has both practical and legal dimensions. It protects the business owner from procedural errors, ensures proper communication with the authorities and increases the chances of a favourable outcome to the audit. A professional adviser not only represents the taxpayer but also ensures that the entire process is conducted within the bounds of the law and with respect for the taxpayer’s interests.

Author

Piotr Magda

Radca prawny, Senior Associate

The practice includes ongoing advice on administrative and tax law. He has extensive experience in handling judicial, administrative, tax and judicial-administrative proceedings concerning both individual clients and business entities, including that gained through many years of providing services to local government units and other units of the public finance sector.

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