Tax risk assessment and review

As is known, companies bear significant expenses for fines and penalties to be paid to the budget and extra-budgetary funds. Contrary to bank fees, the items stated are not taken for withholding when corporate income tax is calculated. Accordingly, it is advisably to pay tax liabilities on time. At the same time, by the nature of business, errors appear which are found after the reporting date and give rise to the risk of untimely adjustment of relevant tax reports.

Though the check of initial documents takes most of the audit time, errors are most often found in the process of calculation of taxes and preparation of the declaration, since it requires that the performer has special knowledge and practical experience. It is known that the main violations found on the basis of tax audits are technical errors made when drafting a report, and them errors made due to wrongful interpretation of the legislation and faults of the initial documents.

Our responsible partners have led financial services of major companies so they have perfectly studied production accounting. To check if tax reports are compiled correctly, we have developed our own unique computer tools that automate routine procedures for data collection and exclude technical errors when reports are drafted. The said developments and knowledge enable us to offer you “remote services” - to make full check efficiently and focus attention on the check of the weakest points of tax accounting.

Agreed upon procedures on tax reporting:

We will discuss with the Company accountants the tax accounting policy and will check if the main groups of transactions are consistent with the requirements of the Tax Code.

We will perform reconciliation of provided tax reports with the taxpayer’s accounts.
 

We will compose the drafts of CIT reports, including withholding taxes, VAT, rental tax on export, mineral extraction tax, taxes and mandatory payments from physical persons’ income based on the electronic accounting database and tax ledgers.

Report:

Upon completion of the agreed procedures we will issue the reports on actual results, which will contain all identified deviations in tax accounting and provide detailed calculations. We will expand our calculations by giving references to analytical accounts of the Company accounting records, which would further facilitate the counter-checking by the Finance Department.