Guidelines for planning and approval of monthly tax audit plan
The audit plan should reflect the needs presented in the Large Taxpayer Office. The heads of offices should send their proposals in writing to the Head of Audit Section, before the latter starts preparing the audit plan for the following month. In order to make sure that the planning is correct and that taxpayers to audit are correctly included in the plan, it is necessary to also have proposals from the head of the assessment and collection section as well as from the head of enforcement and debt management, so that this cooperation will serve to clarify certain issues, such as, data keeping methodology, especially in cases when taxpayer’s data are incomplete. Information is also received from the official in charge of Appeal Administration, for cases when the taxpayer to be planned for audit is under appeal procedures.
The audit plan is prepared by the Head of Audit Section on the 25th of the preceding month and is presented to the Head of Large Taxpayers Office. After the latter has received approval from the Head of Tax Audit Directorate in tax agency, this plan should be approved no later than the Cannabis Compliance Services first day of the planned month, but the plan should be available for the Tax Audit Directorate at least two days before the end of the month. If there is no answer until the 1st of the month, Large Taxpayers Office can consider the audit plan for the month in question as accepted by Tax Audit Directorate.
Using the audit selection methodology (IT or manual program) the plan should include the taxpayers to be audited as well as the number of days to be spent for each tax audit. Tax Audit Directorate can change the already selected taxpayers, but it cannot change more than 15% of the total number of taxpayers selected by the audit section, neither can it change the taxpayers that have been selected by the IT system, if such system is in use. In such case the Tax Audit Directorate can add other taxpayers for audit and they should be part of the 15% of manually selected taxpayers together with the selections made by the selection system.
Deadlines applicable in planning audits for special requests
The practice adopted so far has shown that continuous audits to large taxpayers have hidden their factual tax obligation, and consequently, large businesses in general represent the larger risk area for hiding tax revenues. On the audit planning process, the head of audit section should assess the risk for potential fraud. Thus, in case fraud is discovered, the audit plan should include the necessary techniques to be used.
Cases of refunding requests
The Assessment Section provided the Head of Audit Section with the list of persons that have requested refund. This list is sent via internal protocol of Large Taxpayers Office. In the meeting with the heads of offices, the Head of Section plans the fiscal visit for the closest day possible in order to check the accuracy of each request included in the list. At the end of such check after the fiscal visit, this sector specifies the sum agreed for refund in the report written for this purpose. A copy of the fiscal visit report is sent to the Assessment and Collection Section via internal protocol. The deadline for sending this information should not exceed 25 days from the date the refunding request was registered in the respective register.