The 2018 amendments of the system of tax procedure rules raise the importance of prevention and the up-to-date keeping of records, tax accounts, and documents. Unlike previously, the tightened rules that were introduced to shorten tax audits and improve their efficiency require enhanced cooperation and proactivity from taxpayers. The keeping of tax-related deadlines became particularly important as failure to submit certain declarations or to supplement documents may easily be considered in an audit as a hindrance of the tax procedure which may have consequences much worse than only a procedural penalty. As a result of the tightening of rules of evidence and legal remedy, evidence, facts, and circumstances of the substance serving the company’s benefit may be disregarded, for the submission of which there will be no opportunity at later stages of the procedure. A negative outcome of the tax audit may also threaten the benefits available to reliable taxpayers and the keeping of this status is now already a key to competitiveness.
The tax experts and tax consultants of RSM Hungary Plc. are highly qualified and have broad audit experience in both direct (corporate tax, dividend tax, local business tax, personal income tax) and indirect tax (VAT, excise tax, public health product tax). They have a thorough knowledge of Hungarian and international tax regulations, the views regarding their application and the case law of both Hungary and the Court of Justice of the European Union.
Our colleagues having experience as tax authority auditors or lawyers are familiar with the rules of tax authority procedures, the focus points of tax audits and are therefore able to provide efficient, professionally grounded assistance to our clients protecting them from unexpected surprises during an audit.
In our tax audit program developed together with our clients taking unique preferences into account, we identify and quantify potential tax risks during a
- review of the economic events of a certain period, or
- a system level or in-depth review of certain tax types
and formulate recommendations for their elimination or adjustment.
As part of our tax audit compliance service
- We review accounting at the level of the general ledger, analytical records or accounting documents in line with the client’s needs.
- Our audit covers the fulfillment of tax/tax base assessment, declaration, payment obligations, and data supply and announcement obligations (electronic public road transport system, online cash registers, online invoicing).
- We pay special attention to tax deduction, tax allowances and tax base adjusting items and the review of the documentation substantiating these.
- To ensure the correct tax law classification and treatment of domestic and cross-border transactions, we define control points and, if necessary, recommend process improvements.
- Our analysis covers a content review of contracts from a tax perspective and to the reviewing of the performance and tax implications of economic events.
- In the case of organizational changes (mergers, separations, transformations, transfers of branches of business),we review the contracts and legal documents drafted in relation to the corporate law transaction from a tax perspective.
- We review the compliance with tax regulations of employment-related benefit systems and cost accounting.
- We identify tax allowances and tax saving opportunities not taken advantage of in order to support the business development processes of our client.
- We develop possible solutions for the treatment of identified tax and other problems and, if requested, we cooperate in the implementation of these and in the necessary adjustments.