A Revenue audit is a cross-check of the information and figures shown by you in your tax returns against those shown in your business records.
What form will the audit take?
Typically, an audit involves a series of steps, as follows:
- On arrival, the auditor identifies himself or herself to you and explains the purpose of the audit. An indication of the length of time he or she expects to spend on your premises is also given.
- You are given an opportunity to disclose to the auditor any inaccuracies in your tax return.
- The auditor will examine your books and records to verify that the figures have been correctly calculated and that the tax returns and/or declarations for the different taxes are correct.
- If the auditor finds the returns to be largely correct as is often the case, you will be told so as soon as this becomes clear.
- If the auditor finds that adjustments are required, he or she will quantify the adjustments and the additional tax. The details of how the additional tax arises will be discussed with you and you will also be notified in writing.
- At the final interview, the auditor will ask for your agreement to the total settlement figure.
- Once agreed, the full amount should be paid to the auditor who will issue you with a receipt.
Call us today to minimise your exposure and to avoid interest and penalties during a revenue audit. Our tax partner Owen Dunne has been present at many revenue Senior Partner and negotiates with the revenue commissioners on a regular basis.