Potential tax-related issues require more attention when performing transactions with foreign countries or in case of many intra-group transactions (so-calledtransfer prices).
Sometimes the tax risk audit is included in the audit of annual accounts. At other times it is reasonable to order tax risk audit before acquisition of a company to be sure that intended purchase does not involve hidden obligations.
Tax risk assessment may also prove necessary in planning and launching new field of activity. For example, starting to provide services exempt from tax may be subject to restrictionson VAT refund on purchase. This may in turn affect the decision whether new service is actually profitable or is it more reasonable to establish a separate company for providing new service in order to avoid problems with value-added tax.
If you have any doubts with regard to accounting for taxation purposes, we always recommend to double check it with expert. Experience shows that double-checking has prevented many problems and saved money.
Tax risk audit may also focus on a particular field of activity and does not necessarily cover all activities of the company.