Audit of current tax returns

Timely and accurate declaration of tax obligations is critically important for any business. In recent years, the Revenue Service has strengthened the procedures for controlling declarations. The number of cases of direct tax audits has decreased, while the number of cases that have been escalated to audits as a result of declaration controls has increased. In accordance with the plans of the Audit Department of the Revenue Service, a large part of the resources are allocated to the control of declarations.

Our experience shows that in many cases, errors in the declaration lead to additional questions from the Revenue Service or the appointment of a tax audit . In such a reality, checking tax declarations before sending them to the Revenue Service becomes even more important. The Loialté team ensures that declarations fully comply with applicable legislation, which will help you avoid unforeseen sanctions and excessive administrative pressure

What does the current tax return audit service include?

Loialté’s current declaration control service involves auditing all required current declarations in accordance with the client’s obligations, ensuring the accuracy of the information reflected in the declarations and compliance with legislation. Within the scope of the service:

  • After the end of each reporting period, no later than the due date for submitting declarations, the declarations/calculations submitted to the tax authority are checked for compliance with tax legislation;
  • Bank statements for the relevant reporting period and all information about the taxpayer available on the Revenue Service’s electronic services website (RS.GE) are processed;
  • Accounting documentation and the accuracy of their reflection in the accounting program are checked;
  • The information reflected in the declarations prepared for submission is compared with the data calculated based on the accounting program and accounting documents, and information about the identified differences/inaccuracies is communicated to the customer with an indication/purpose of ways to correct/eliminate them;
  • In the event that the Revenue Service uses a control mechanism, the Loialté team will help you manage the processes and communicate properly with the tax authority so that the control procedure does not turn into a tax audit;
  • The Loialté team ensures that the client is constantly informed about changes and innovations in tax legislation;
  • You can benefit from Loialté’s free tax consultation regarding problematic issues that have arisen during the current period.

Although an accountant records daily transactions and fills out tax returns , due to time constraints or busy schedules , technical inaccuracies and overlooked issues are common , as well as errors caused by different interpretations of legislation . A person rarely notices his own mistakes, and the involvement of a tax auditor creates an additional layer of protection for both the company and the accountant . An audit of current tax returns does not necessarily mean distrust of the accountant or the need to replace him , but rather they complement each other and insure your business against unexpected sanctions .

  • It is recommended to conduct an audit of declarations monthly or, in extreme cases , quarterly , depending on the volume of the company’s activity and tax risks . In our experience, a monthly audit allows you to detect errors in a timely manner and avoid additional penalties or excessive taxes . This is a preventive step that protects you from financial uncertainties ;
  • The audit lasts an average of 2-10 days and its duration depends on various factors , including the number and accuracy of declarations and accounting documents available during the period under review , and the timeliness of their submission for the audit . The specifics of the company’s activities are also of great importance , as well as whether the audit requires additional explanations or verification of initial documents , etc.

Loialté is the largest provider of the so-called Growth Hubs project of the “Produce in Georgia” agency, and business entities that meet the criteria set by the program can benefit from co-financing of up to 10,000 GEL in the following areas:

  • Finance and Accounting;
  • Taxes;
  • Legal services;
  • Business plan, strategic planning and business modeling;
  • HR services.

Additional information about the program can be found at the link .

The audit of current declarations is conducted immediately after the end of each reporting period, before the official submission of declarations, and aims to ensure constant and continuous compliance with tax legislation.

In contrast, a full tax audit involves examining past-period liabilities and is typically conducted once a year, sometimes once every three years.

In such a case, the detection of deficiencies may be delayed, which increases the likelihood of penalties and unrecognized liabilities being accrued, as well as financial risks.

When using the support services during the tax declaration process, Loialté will welcome you with experienced tax auditors and consultants who have many years of experience working in both the private and public sectors (including the Revenue Service).

With our involvement, the monthly declaration process is more secure and controllable. In addition, our professional liability is insured by a leading insurance company. As a result, you insure your tax risks and receive a strategic partnership based on experience, legal accuracy, and reliability.

In addition, Loialté holds an ISO 9001:2015 certificate for tax audits, which confirms the high quality of our services and compliance with international standards.

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