What the service includes
A field audit differs from a desk audit in its depth: inspectors work on the company’s premises, may interview staff and can request documents going back several years. A business that is not prepared risks additional tax assessments out of nowhere.
If there is time, we help you prepare in advance; otherwise we join mid-audit, monitoring the lawfulness of the inspectors’ actions and building your position on the disputed transactions.
During a field audit the inspectors are physically in your office, and how staff behave in the first few days often affects the outcome more than the documents themselves. We prepare in advance a protocol for dealing with the inspectors: who answers questions and how, how documents are handed over, and what to do in the event of a sudden seizure. A lawyer is present on the company’s premises on the key days of the audit to record procedural breaches and to stop the inspectors exceeding their powers.
What the service includes:
Who it is for
The situations clients most often bring to us on this topic.
How we work
A fixed fee and a clear plan of action, agreed before work begins. The timeframes below are indicative and depend on the complexity of the case.
Readiness assessment
We identify which of the company’s transactions may raise questions with the inspectorate and, where possible, prepare the supporting case in advance. Timeframe: 1-2 days.
Support on site
We attend document seizures and inspections and monitor the inspectors’ compliance with procedure. Timeframe: the full duration of the audit (up to 2 months plus extensions).
Handling requests
We prepare responses to requests for documents and explanations within the statutory deadlines. Timeframe: as requests arrive.
Objections to the report
At the end of the audit, where there are grounds to disagree with the inspectorate’s conclusions, we prepare reasoned objections to the audit report. Timeframe: 10 working days for objections.
What you will need at the start
We confirm the exact list for your situation at the consultation. This is a guide so that you arrive at the first meeting prepared.
Key figures
Experience in this practice area specifically, not in practice as a whole.
Common mistakes
Preparing only after the decision arrives. The company begins to prepare only once it has the official decision ordering the audit, although signs of heightened attention from the inspectorate, such as counterparty cross-checks and requests for explanations, usually appear earlier and leave time to prepare.
Underestimating subsidiary liability. The director treats additional assessments as purely the company’s problem, overlooking that if recovery from the company itself is impossible, the personal assets of the director and shareholders may be pursued under subsidiary liability, including after the company’s liquidation or bankruptcy.
Complying unconditionally with the inspectors’ demands. The company hands over any document or information requested without checking whether it relates to the period and subject of that particular audit, and so voluntarily widens the evidence base against itself.
What you get
A protocol for dealing with inspectors. Your staff have clear instructions on what to say to inspectors and what to leave for a written reply.
A lawyer on site on the key days. On the days when the risks are highest, such as seizure, inspection and interviews, the company’s lawyer is present.
Procedural breaches on record. Every departure by the inspectorate from the audit procedure is documented and ready to be used in the objections.
Objections to the report that address procedure. In addition to arguments on the merits, the objections include procedural breaches that can lead to the decision being set aside.
Related
Frequently asked questions
How can we tell that a field audit is coming?+
The official decision to carry out an audit is served on the company, but there are also indirect signs (for example, a series of in-depth information requests) after which it is worth preparing in advance.
Can a company refuse inspectors access to its premises?+
No, access is a lawful right of the inspectors. But their actions must follow the prescribed procedure, and any breaches can and should be recorded.
How long does a field tax audit last?+
Formally up to two months, but once extensions and suspensions are taken into account, it can in practice run to six months or more.
What if genuine violations are found during the audit?+
We assess the scale of the problem and propose a strategy, ranging from voluntarily amending tax returns to reduce penalties to challenging part of the inspectorate’s findings.
Can a field audit cover a period that has already passed a desk audit without any claims?+
Yes. A field audit is a deeper procedure with wider powers for the inspectorate, and a clean desk audit of the same period does not protect you from a second, more detailed review of those same transactions.
Are inspectors entitled to seize a company’s documents or equipment during a field audit?+
Seizure is permitted only where there are grounds to believe that documents may be destroyed or replaced, and it must be recorded in a protocol drawn up in the presence of attesting witnesses. Having a lawyer on site means any breach of this procedure can be recorded on the spot.