Tax Audit

As prescribed by the legislation, VAT, Corporate Tax returns and other tax reports are signed by managing directors and chief accountants (if any) of all Ukrainian companies. The chief accountant becomes a responsible person for the tax accounting organization and reporting.

But the managing directors, as a rule, are not tax experts and concentrated mainly on sales, operations and technology. As a result, they delegate the technical side of tax reporting to chief accountants at the same time retaining full responsibility for its correctness. By doing so, the directors accept a personal risk which they quite often decide to minimize through an instrument of tax audit. Such audit engagement, basically, presumes the audit of chief accountant's work for a defined period.

The tax experts of Alt always demonstrate excellent performance in evaluating tax accounting organization system. Our experience suggests that at least a half of errors in tax returns are caused by defects of the system and another half by the personal factor.

In result of tax audit our clients obtained the detailed Internal Management Report with the following sections:

• Tax accounting organization system description: defects and weaknesses identified and recommendations on system's improvement;
• Chief accountant's and other accounting staff qualification evaluation;
• Errors and missing documents listing with our recommendations on their adjustments;
• Potential tax risks associated with particular transactions, contracts or decisions;
• General evaluation of tax position.