Tax review of business activities
Tax review of business activities is a service that involves both an analysis of an entity’s tax compliance status, identification of tax risks and development of the strategies aimed at their mitigation. To perform an engagement, we analyze tax reporting and reconcile it with accounting data and financial statements; we also review source documents on the matter of their compliance with tax legislation and market best practices
Tax review for the specified period includes the following:
- Checking of the accuracy of reporting and accounting of individual items in the Company's profit & loss account and statement of financial position (incomes and expenses, non-current assets, payables, provisions, etc.).
- Reconciling of indicators from VAT returns and CIT returns with accounting data (other tax returns at the client's request).
- Checking of the correctness of the tax base calculation, taking into account permanent and temporary tax differences.
- Checking of the correctness of withholding tax liabilities calculated on Ukrainian-sourced income.
- Review, on a sample basis, of source documents that support the Company's key transactions.
- Checking of the methodology of tax accounting for personal income tax and unified social tax on key transactions.
- Review of the methodology for preparation of reports on reportable accounts in accordance with the Agreement between the Government of Ukraine and the Government of the United States of America to improve the implementation of tax rules and the application of provisions of the Foreign Account Tax Compliance Act (FATCA), and in accordance with the Multilateral Competent Authority Agreement on automatic exchange of information on financial accounts (MCAA CRS) concluded in accordance with Article 6 of the Convention on Mutual Administrative Assistance in Tax Matters.
- Provision of comments on current tax issues that arise during the tax review and relate to the review period.
The review also includes the controversial transactions analysis from the viewpoint of tax authorities and the review of precedents in the court decision database (if any).
A detailed report is generated on the basis of the review results. The report contains a description of risks (including the risk level assessment) and recommendations on eliminating or mitigating the level of the tax risks identified.