Well prepared, no problems or nasty surprises and achieving the best possible results – that's how a tax audit could be. PwC’s highly qualified and experienced consultants assist companies through all phases of a tax audit: preparation, development of an individual audit strategy, efficient handling, arranging and holding the final meeting and subsequent implementation of the audit findings. Models of various scenarios assist in establishing at an early date the resulting financial effects and provide the opportunity to react accordingly.
Who acts as contact person? Who gathers together the necessary documents and records and analyses them before they are handed over to the auditor? How should you deal with the preliminary audit findings? These and similar questions should be clarified before the audit begins; after all, a company that is able wherever possible to provide its tax-related documents quickly and completely creates an overall trustworthy image.
The following should also be carried out upon receiving the tax audit order from the respective tax authorities:
Experience in negotiations with the tax authorities is decisive for a successful outcome of the tax audit. Together with you, we build up a position of defence and simulate procedures and methods for conducting negotiations. In the event of special tax audits, for example in the sector of transfer pricing or audits on value-added tax or wage tax, as well as in cases where aspects of the law on fiscal offences are involved, PwC calls in specialists with expertise in those areas.
Modeling various scenarios helps to establish the financial effects of the individual audit findings and determine possible areas of compromise, and on this basis develop a strategy for the final meeting.
Once the effects of the findings of the tax audit for coming years have been identified and quantified, the next step is to ensure that the affected internal processes are adjusted accordingly so that the errors that have been uncovered are not repeated in following years. Often this also involves having to amend tax declarations for previous years that have already been submitted on the basis of the findings of the tax audit.
Data access by tax authorities as part of tax field audits has since become standard procedure. Nevertheless, it has been found in practice that the demands on the identification of relevant tax data as well as its technical preparation have not established themselves globally throughout companies so far. In order to ensure that you are fully prepared, PwC provides you with a team of experts to assist and advise you on:
Partner, Global Tax and Legal Managed Services / Alliances Leader, PwC Germany
Tel: +49 160 7032368