How do I proceed if I have a tax audit regarding trade tax?
December 19, 2023 | 30,00 EUR | answered by Eva Heuser
Dear Sir or Madam,
My name is Lilli Otremka and I have recently learned that my company is undergoing a tax audit regarding trade tax. This news has left me feeling uncertain and I am unsure about the best course of action in this situation.
For background information: My company is a medium-sized trading company that has been successfully operating in the market for several years. We have always made sure to comply with all tax regulations and submit all trade tax declarations properly.
Nevertheless, I am concerned about the upcoming tax audit. I wonder if I should have all the necessary documents and papers ready, how best to communicate with the auditors, and what consequences a potential tax payment could have.
My worry is that the tax audit could lead to discrepancies or errors that could burden my company financially. Therefore, I want to make sure that I am well-prepared and minimize any potential risks.
My question to you is: What is the best way for me to prepare optimally for the tax audit regarding trade tax? What documents should I have ready, how should I behave during the audit, and what measures can I take to prevent potential difficulties?
I am very grateful for your support and expertise, and look forward to your helpful advice.
Sincerely,
Lilli Otremka
Dear Mrs. Otremka,
Thank you for your inquiry regarding the upcoming tax audit of your company in relation to trade tax. I understand that this message may be unsettling for you and that you are concerned about the financial security of your business.
Firstly, I want to emphasize that it is very positive that you have always made sure to comply with all tax regulations and submit your trade tax returns properly. This speaks to your credibility and responsibility as a businesswoman.
To best prepare for the tax audit, it is advisable to have all relevant documents and records available. These may include trade tax returns from previous years, accounting documents, contracts, invoices, bank statements, and any other documents related to your business activities. It is important that these documents are complete, organized, and well-structured. If you are unsure which documents are relevant, I recommend contacting your tax advisor to ensure you have everything necessary.
During the tax audit, it is important to communicate cooperatively and transparently with the auditors. Answer their questions honestly and accurately, and provide all necessary documents. If you are unsure or have any questions, do not hesitate to ask. It is better to address uncertainties directly, rather than be confronted with consequences later on.
In the event of a potential additional tax payment, you should not underestimate the financial impact. It is possible that your company may have to pay additional taxes if discrepancies or errors are found. This may also result in interest and potentially even fines. Therefore, it is important to set aside financial reserves for such situations or take other measures to protect your business from financial difficulties.
In summary, I recommend thorough preparation for the tax audit, keeping all necessary documents ready, communicating cooperatively with the auditors, and keeping an eye on possible financial risks. If you have any further questions or need assistance, I am at your disposal.
I wish you success in the tax audit and am available to support you at any time.
Sincerely,
Eva Heuser
Tax Advisor
