deWaardKramer

Every business will have its books inspected by the tax authorities at some time or another. Most of these are routine checks on the quality of accounting systems, compliance with tax return regulations, payment of assessments, and the extent and nature of any adjustments.

Files and records

Clear bookkeeping and accounting records and a comprehensive filing system are essential to ensure that the tax audit proceeds smoothly. deWaardKramer can arrange this for you. Because a tax audit is usually carried out at the consultant's or accountant's office, we can respond to the inspector's questions directly and adequately.

Obligations

To make checks of this kind possible, you and your business have a duty to retain records and a duty to allow inspections.

• The duty to retain records concerns books, documents and all kinds of other information data carriers (e.g. CD-ROMs).

• The duty to allow inspections means that a business must give the Tax Office access to relevant documents. This duty to allow inspections is not unlimited, however. Under normal circumstances a tax inspector does not have access to all areas and filing cabinets. The consultants know how far the duty to allow inspections extends.

In addition to standard audits, there are also "FIOD investigations". The Fiscal Intelligence and Investigation Service (FIOD), which is part of the Tax Office, conducts investigations in cases of suspected tax offences. A FIOD investigation may follow on from a standard audit. In that case the business owner is no longer an interlocutor, but a suspect. And the investigator is no longer interested in whether the books can be reconciled with the financial statements, but is looking for evidence of criminal activity. Under these circumstances the consultant can also provide support to the business owner.