Tax offices can verify the tax findings or the tax returns submitted by means of an audit. As a general rule, audits are carried out in the event of conversions or restructurings, but the tax offices also carry out audits at regular intervals, even if there is no specificity. In this article we explain the requirements, the scope and the final discussion of the audit. An important part of the audit is the audit order and the subsequent audit report.

At the beginning of the audit is of course the audit order: The tax office declares that it wants to carry out an audit for the selected years (often a 3 year period) and the selected tax types. This is also called how the auditor is called by the tax office and where the audit is to be carried out. Often the company audits are carried out at the companies on site, but it can also be used with consultation with the tax office the rooms of the tax consultant or even an audit at the office.

The audit will cover all factual and legal circumstances of the taxpayer that are relevant for taxation. This means, in contrast to an objection or similar, not a certain fact is examined here, but the company as a whole.

In almost all cases, the inspector requires the transmission of documents before the start of the operational audit. These documents are, on the one hand, the electronically processed data (GDPdU data) as well as individual contracts, documents and other documents that had played a role in important corporate processes. This shall ensure the smooth running of the service test.

In addition, the tax office reserves the right to extend the company audit in many audit-worthy situations. Especially in the case of a tax reduction or tax evasion, this plays a role, as it allows further tax findings to be obtained quickly without having to order further examination.

If you intend to take action against the audit, you should always object to the audit order. Because the examination order here represents an administrative act, which can be attacked with an objection. In contrast, the later audit report does not constitute an administrative act and cannot be attacked. By objecting to the examination order, you also achieve the exploitation ban – the tax office may now no longer use the results.

After the test has been announced, it can take place. On the basis of software programs, the auditor will make an initial analysis and examine the bookkeeping. As part of this, he will ask for documents from time to time and ask for information. Much more than that cannot happen at this point. The findings which the auditor makes are only clarified and discussed between the auditor and the taxpayer in the context of the final meeting.

At the request of the taxable person, the audit can be postponed if there are important reasons for this. Such important reasons are regularly the illness of the taxpayer or the illness of the tax consultant, considerable disruptions due to a conversion or even force majeure (storm, fire, etc.).

For the examination period, it also plays a role in which size class one was classified by the tax office. Only for large companies (e.g. also corporations) are the company audits set in such a way that they follow the previous audit without gaps. In the case of medium-sized or small enterprises, testing is not so often, but when testing, a 3-year period is also tested here.

If a suspicion of tax evasion or irregularity arises during the audit, the auditor must inform the taxable person immediately. Because at the same time, the responsible tax office is also informed. In such cases, the company audit meets the Code of Criminal Procedure – assistance in the company audit, which is continued, can no longer be enforced, so that the taxpayer does not have to burden himself.

The final meeting is provided for by law and is intended to serve the taxpayer to learn the results of the auditor as well as to express and defend themselves at the same time. Final meetings can also be held on site by telephone. During the final meeting, the auditor rushes all results and explains their tax implications. These results will be recorded in writing in the audit report later.

During the final meeting, the taxable person may also request that the audit report be sent to him before the evaluation so that he can comment.

The results of the examination shall be recorded in writing in an examination report. The audit report contains several sections in order to fully reflect the status of the company, the audit carried out and the results. In addition to the legal explanatory part, there are also several figures that reflect the tax effects on the balance sheet and the tax assessments.

The audit report will therefore serve the tax office to change the tax assessments of the audited years. With the amendment of the tax notices, a still existing reservation of the review must also be lifted.

In cases where no changes are found by the auditor, no audit report is to be prepared and no change of the tax assessments is planned.