A tax audit can arise at any time, for no particular reason and without warning.
However, there are certain factors that can attract the attention of the tax authorities and expose you to a tax audit.
To help you avoid tax audits in advance, we've listed below 5 mistakes or behaviors you should avoid making in order to avoid a tax audit.
1 . Submitting tax returns after the deadline
Submitting your tax returns after the due date, or not submitting them at all, can lead to reminders from the tax authorities, so you need to keep a close eye on your business.
Avoid!
2 . Inconsistency of your declaration with that of your customers/suppliers or with the data collected by the authorities.
Rest assured that the financial data entered in your accounts is correct, to avoid any discrepancies with the data recorded by the tax authorities, your suppliers or your customers.
Proofread and check all your figures. Everything must be consistent!
3. A debit current account
Your company can't lend you money, which could expose you to heavy legal penalties.
If this is the case, the tax authorities will repeat it in your accounts to the extent that it appears in your balance sheet.
Avoid!
4. Inconsistent variations in your company's sales.
The tax authorities may be alerted by differences in figures that are deemed too large.
Take care!
5. Frequent relocation of your company's headquarters.
Some managers are tempted to change their company address on a regular basis. Each time they move, the tax authorities are notified and look for the reason for the change.
Frequent head office transfers can therefore be a source of concern for tax authorities.
We would be delighted to audit your legal, accounting and tax affairs.
Best regards,
Faithfully yours,
Ilham Taha-Bouamri
Chartered accountant and tax specialist
