Have you been subjected to a tax audit?

1. Legal Basis for Audit

The tax authorities have extensive legal authority to conduct investigation or tax audits on the taxpayer. Although there are limitations on the right to visit a taxpayer's private residence, a control can be carried out in a private home if a business is operated there. However, this requires that additional conditions are met, such as the existence of a concrete suspicion of tax evasion.

2. Right to Receive a Notice

The taxpayer has the right to receive a notice of the tax audit with reasonable time to prepare. Unannounced inspection can only be carried out under strict conditions, such as suspicion of evidence tampering.

3. Evidence Securing

The tax authorities can carry out evidence securing in cases where there is reasonable ground to believe that there is a basis for additional tax. This involves access to premises, properties, vehicles, and storage sites to search for evidence. Evidence securing requires a decision from the District Court, and the taxpayer can appeal the decision, but the appeal does not have suspensive effect.

4. Seizure

As part of evidence securing, the tax authorities can seize business premises, books, business papers, or electronic storage media. They can also take copies of documents and electronically stored information for further examination.

5. Right of Access

The taxpayer has the right to access the case documents, which provides the opportunity to understand the basis for the tax authorities' assessments and any decisions.

6. Duty to Provide Information

The taxpayer is obliged to provide accurate information during the tax audit. Incorrect information can lead to additional tax, and it is important to be careful and honest in all communication with the tax authorities.

7. Duty to Assist

The taxpayer must cooperate by providing necessary assistance during the tax audit. If the taxpayer believes there is no basis for providing certain information, a complaint can be filed within one week of the order. The deadline for filing complaints against ordinary decisions regarding the amendment of tax assessments is six weeks.

8. Right to Receive a Report

After the tax audit, the tax authorities must prepare a tax audit report which the taxpayer has the right to access. The report contains a description of the facts and the auditor's proposal for changes, which are then assessed by a lawyer for legal basis.

9. Complaint

The taxpayer has the right to complain about decisions made by the tax authorities. The complaint process provides the opportunity to have the case reassessed.

10. No Immediate Obligation to Pay

Once the report is completed, the taxpayer has the right to access it. There is no obligation to pay tax or duty based solely on the report. The obligation to pay arises only when a decision has been made.