TAX AUDIT-OVERVIEW Desk audit: This level of control is designed to verify the accuracy of declared information by cross-checking it with the tax return or other information requested by the tax administration. It is done at the tax administration’s office and generally, focuses on identifying any irregularities or inconsistencies. The tax administration may invite the taxpayer to clarify and present documents concerning the irregularities found in the tax returns. This kind of audit can only be conducted within 12 months after submission of the tax return. If the irregularity or finding is complex or considered high risk, the desk audit will be terminated and replaced with a more detailed, on-site audit (i.e. a limited audit or comprehensive audit (see below)). LIMITED AUDIT
• Limited audit: This audit is a more extensive review of a taxpayer’s compliance with their monthly tax obligations (the annual TOI can only be examined under a comprehensive audit (see below)), with a focus on points of risk. Tax auditors will use all available resources, including visits to the taxpayer’s place of business, and inspection of tax returns, accounting records, and other relevant supporting documents, to verify the accuracy of the taxpayer’s returns. This audit can only be conducted for the current tax year (N) and the immediately preceding tax year (N-1).
