G) Audit

  1. What information is a taxpayer required to provide during the course of an audit? (Tick as applicable)

  2. Often auditors are given a wide range of powers during the course of an audit (including the power to compel the taxpayer to provide books and records). Certain countries require that once an audit becomes a criminal investigation, use of those broad powers must cease and/or any information procured under the wide ranging powers is inadmissible in a criminal investigation. Does [your country] limit evidence that can be admitted in a criminal matter when it was procured using broader audit powers? If yes, please describe in comment box.

  3. Is the taxpayer required to answer questions regarding intent? (i.e. Why did you register a corporation in the a ABC jurisdiction or what was your purpose in doing X?)

  4. Prior to carrying out a routine audit or enquiry, are tax officials required to notify the taxpayer of the audit or enquiry?

  5. Are tax officials conducting an audit only permitted to request information that is applicable to the matters under review and reasonably necessary in the circumstances?

  6. Are tax officials permitted to use penalty provisions as a negotiating tactic? (e.g. If the taxpayer does not concede on a point in dispute, penalties may also be applied as well)

  7. Do tax officials ask questions of taxpayers without necessarily disclosing the intent and implications of the questions?

  8. If the taxpayer requests all communication be in writing, is the tax authority obligated to comply?

  9. Does a taxpayer have a right to have a tax advisor (which may include legal counsel) present at all meetings and other interactions? (e.g. during an audit)

  10. Are preliminary audit results or conclusions given informally to the taxpayer or tax advisor with reasonable time to respond so there can be dialogue before a final audit position is reached?

  11. When the imposition of a penalty is considered by the tax authority, is this disclosed to the taxpayer at the time the tax authority becomes aware of the circumstances which might justify the penalty?