Tax inspection

Tax inspection is undertaken ex officio by the tax authorities. The purpose of a tax audit is to check whether the inspected taxpayers (payers or collectors) comply with their obligations under the tax law.

The initiation of the inspection procedure authorizes the tax authority to apply to the taxpayer pursuant to art. 9a paragraph. 4 uCIT (relevant uPIT regulations) to submit a DPCT within 7 days. The tax authority may also ask the taxpayer to provide all evidence confirming the entries made in the DPCT. In particular, the tax authority may require certified and translated copies of foreign-language documents, and documented DPCT related to the transaction.

It should be noted that a control report is prepared from the control activities, which should include, among others:

  • indication of the controlled,
  • indication of controlling persons,
  • determination of the subject and scope of the inspection,
  • determination of the place and time of the inspection,
  • description of the factual findings made,
  • documentation of the evidence taken,
  • legal assessment of the case under review,
  • instruction on the right to submit reservations or clarifications and the right to correct the declaration.

In the description of the arrangements made, the protocol states the facts concerning the execution of transactions between related entities. If the actual state determined by the tax authority differs from that presented by the taxpayer in the tax documentation and confirmed by other evidence, then there is a high probability of initiating tax proceedings determining the income (loss) in the appropriate amount, in the opinion of the authority.