A revenue audit is a two-part method that looks at the statistics and details on the tax returns of a corporation against those found in its business reports. In general, auditors review the income returns over one year. They should, however, also check records for previous years if they find any inconsistencies.
Regardless of the size of the business operations, most companies are subject to an audit. Auditors may concentrate on one or more fields, such as your financial statements, compliance, tax records, or company activities. For example, during a revenue audit, the tax returns of a corporation would be compared to its reports.
The revenue audit consists of the review of the tax return, the inspection of the declaration of liability and the representation of liability in respect of the stamp duty, and the verification of the person's compliance with their obligations under the tax and duty legislation.
In addition, during the revenue audit, the correct level of liability of the company is examined by investigating the books, records, and compliance of the organization with its tax obligations. Similarly, the auditor collects the sum of the taxpayer's unpaid taxes to place them on a proper tax enforcement basis.
*NOTE: A single auditor may perform the Revenue Audit, or if the organization's size requires a team of Revenue auditors, then a team can work on the Revenue Audit of an organization.
After the selection for the Revenue Audit, the organization will be given written notice twenty-one (21) days before the scheduled audit date. The letter will explicitly state the audit starting date.
The letter includes the following information:
When the taxpayer receives the written notice following the issuance date of the letter, the taxpayers are no longer allowed to make the “unprompted qualifying disclosure.”
The taxpayer can still prepare the “prompted qualifying disclosure” before the examinations of books and records begin.
AMCA can help our clients prepare all the prerequisites for their Revenue Audit. Our professional and expert auditors are equipped to assist and ensure their obligations towards the tax and duty legislation.
With quarterly check-ups, we will ensure our clients' well-being. As a result, we can be confident that our customers' tax enforcing duties are adequately maintained. Additionally, we will contact the Revenue Department to verify if any fines or interest are due, and we will come up with the best possible remedy or settlement.
We promise to provide customers with a strong future by providing the most effective service.