Commercial activity is inextricably linked to interaction with tax authorities. Even when a business strictly adheres to statutory requirements, undergoing a tax audit is generally inevitable. It is important to note that during periods of economic or geopolitical instability, regulatory authorities may implement moratoriums on audits for specific categories of legal entities.

Legal Support for Desk and Field Tax Audits

The primary concern for business owners during an audit is the potential for additional tax assessments (back taxes). The probability of such accruals increases if business operations were conducted in violation of tax regulations. While some non-compliance is intentional, many infractions occur due to a lack of awareness regarding specific legal norms or shifting tax codes. Tax audits are categorized into two primary types:

1. Desk Tax Audits: These are conducted at the tax office’s location based on tax returns, applications, and supporting documents submitted by the taxpayer.
2. Field Tax Audits: These are carried out at the taxpayer’s premises based on a formal resolution from the head or deputy head of the tax authority.

While a desk audit focuses exclusively on submitted documents, field audits allow authorities to request additional materials and inspect physical premises. The procedure for conducting these audits is strictly regulated; tax officials are authorized to request only those documents relevant to the scope of the audit. Furthermore, tax authorities maintain audit schedules, which are registered on their official portals and included in the consolidated oversight plan hosted by the General Prosecutor’s Office.

Legal Defense Against Tax Assessments and Penalties

The fundamental objective of any audit is to identify legislative violations. Typical areas of concern for tax inspectors include:

1. Identifying errors in financial and source documentation;
2. Detecting the submission of unreliable information or fraudulent records;
3. Uncovering intentional violations aimed at obtaining an unlawful tax benefit.

If violations are identified, the tax authority issues a resolution imposing liabilities. While these are typically administrative in nature, severe infractions may lead to criminal prosecution.

Comprehensive Preparation for FTS Inspections

Sophisticated enterprises engage specialized counsel to manage audit risks. Prior to the commencement of an audit, our qualified attorneys prepare the organization by performing the following:

1. Conducting a forensic analysis of financial operations and existing commercial contracts;
2. Organizing and rectifying documentation in anticipation of regulatory scrutiny;
3. Restoring or recreating missing primary (source) documentation where necessary.

Judicial Defense Following Tax Audit Results

In the event of an unfavorable audit report or disagreement with the findings, it is imperative to challenge the actions of tax officials or submit formal objections. After receiving an audit report, our legal specialists safeguard the rightsholder’s interests through:

1. Drafting and filing substantive objections to the tax audit report;
2. Challenging the unlawful actions or omissions of tax officials through administrative appeals;
3. Representing the enterprise in commercial courts and tax tribunals;
4. Preparing and filing appellate and cassation appeals to contest unfavorable rulings.

The success of a judicial defense depends on the consistent and compliant management of financial records. Proactive compliance reduces the risk of back taxes, interest, and penalties. While some businesses attempt to manage tax matters internally, the volatility of the regulatory landscape often necessitates the involvement of experienced specialists who can quickly adapt to legislative changes and minimize adverse financial exposure.

Maintaining business operations that fully comply with tax laws ensures that audits proceed without findings and minimizes the risk of punitive measures. By entrusting legal and financial oversight to expert counsel, businesses can navigate the current economic climate with confidence, shielding themselves from the significant costs associated with regulatory non-compliance.

Legal Representation in Tax Audits and Disputes

1. Counseling clients on tax audit procedures and statutory rights;
2. Conducting legal audits of corporate activities to ensure audit readiness;
3. Identifying and mitigating potential tax risk exposure;
4. Providing on-site legal support during field tax audits;
5. Representing client interests in administrative and judicial proceedings against tax authorities.