Scheduled tax audits: key takeaways from GOLAW’s Business Breakfast

The event’s experts were Partner at GOLAW, Head of Tax, Restructuring, Claims and Recoveries practice, Attorney at law Viktoriia Bublichenko along with Senior Associate, Attorney at law Tetiana Fedorenko. They analyzed recent practices regarding scheduled tax audits and explained how companies should proceed after receiving a tax audit report. 

The discussion began with an analysis of common findings in audit reports. According to the lawyers’ observations, particular scrutiny is focused on the validity of business transactions, the recognition of foreign exchange differences and the discounting of debt, as well as the application of preferential rates under double taxation treaties. In addition, tax authorities may find grounds to reclassify civil law contracts with sole proprietors as employment relationships, identifying signs of systematic subordination rather than the provision of one-time services or the performance of work. The tax authorities also pay close attention to the proper conduct of cash transactions (use of cash registers and software cash registers). 

Expanding on the topic of financial risks, the speakers moved on to practical advice on protecting a business following a scheduled tax audit. They explained how to file objections to an audit report and what to consider in doing so, also clarified the mechanism for pre-trial and judicial appeals of tax assessment notices. At the same time, they emphasized the importance of meeting the 10-business-day deadline for filing a complaint or a statement of claim to minimize the risk of companies incurring tax debt.  

At the end of the business breakfast, the speakers answered questions from participants and discussed practical case studies of tax audits involving the companies in attendance. They also addressed issues related to documentary evidence for marketing services, the application of limitation periods, and the legal framework governing the re-audit of periods previously covered by a scheduled tax audit.  

Stay tuned for announcements of upcoming events so you don’t miss the opportunity to get practical advice to keep your business safe!