Tax Inspection Support

Tax inspection support is an essential and necessary component of financial management for companies and entrepreneurs. In the modern context of economic instability and stringent tax regulations, the ability to effectively manage tax inspections becomes a crucial factor in ensuring financial stability and compliance with legislative requirements.

Companies must have a clear and competent approach to tax inspection support, aimed at ensuring compliance with tax legislation, risk minimization, and financial optimization. The starting point is a thorough understanding of the processes and rules that define tax obligations and rights of business entities, as well as the ability to collaborate effectively with tax authorities.

What Is a Tax Inspection and How Is It Regulated?

A tax inspection is an official examination of tax accounting and compliance with tax legislation by a company or an individual. In Ukraine, tax inspection procedures are regulated by the Tax Code, Administrative Code, and other legislative acts.

Key aspects of tax inspections in Ukraine include:

• Tax inspections can be conducted by tax inspections and other regulatory authorities. The State Fiscal Service (SFS) is responsible for conducting tax inspections in Ukraine.
• Tax authorities have the right to examine documents, request information, inspect financial and economic activities, and take other actions to determine compliance with tax legislation.
• Taxpayers have the right to participate in the inspection, provide necessary information and documents, and defend their rights in accordance with the law.
• Violation of tax legislation during inspections can result in penalties, fines, the cancellation of benefits, and other sanctions.

Types of Tax Inspections (Physical and Documentary)

Tax inspections can be classified based on various criteria, including the nature of interaction with the taxpayer and the methods of conducting inspections:

• Physical inspections involve a physical examination of the company or object of taxation by representatives of the tax service at its location. The procedure may include verifying the presence of tangible assets, compliance with legal norms, and other aspects that can be physically verified.
• Documentary inspections, in this case, tax authorities conduct inspections by analyzing documents and information provided by the taxpayer without a direct visit to the taxpayer’s location. This may include examining financial statements, tax declarations, contracts, and other documents.

Most Vulnerable Areas of Business for Inspection

Inspections by tax authorities can focus on various aspects of a company’s financial activity. Some of the most vulnerable areas of business for tax inspections include:

• Accounting and financial reporting;
• Information on tax obligations;
• Taxation of wages;
• Use of benefits and discounts;
• Foreign exchange operations and international activities;
• Compliance with tax obligations and submission of declarations;
• Contractual relationships and tax liabilities;

Cases Requiring Inspection Support Services

Legal support for tax inspections is a service that can be used by every client of Dextra Law. Cases where the assistance of specialists may be needed include:

• Planned and unplanned inspections;
• Correction of previously identified errors;
• Tax audit;
• Documentary control;
• Major transactions or changes in business models;
• Protection of rights and interests of the client.

Services We Offer for Inspection Support by Regulating Authorities

Dextra Law provides a wide range of services for supporting inspections conducted by various audit and regulatory authorities, including tax authorities. Our services include but are not limited to the following aspects:

• Expert examination of financial and tax documentation;
• Development of a strategy to ensure compliance with tax legislation;
• Negotiations with tax authorities;
• Analysis of inspection results and action plan development;
• Systematic work with documentation to ensure a comprehensive reflection of the company’s activities;
• Preparation of documents in response to requests from tax authorities;
• Legal defense in cases of disputes with tax authorities;
• Representation in courts and other authorities;
• Provision of consultations on tax legislation and tax obligation optimization strategies;
• Clarification of tax aspects of company activities;
• Audit of compliance with tax legislation;
• Identification and elimination of potential risks and violations;
• Training of company employees in compliance with tax norms and rules;
• Consultations on tax ethics and practices.