Unannounced Audit of the Dutch Tax Authorities
It doen't happen to often, but it does happen. One day, the Dutch Tax Authorities turn up at your door for an unannounced tax audit. They require you to instantly account for all the tax returns you filed in the last five years. Similar to a tax audit, you also have to answer for every filed tax return over the past five years when your company is taken over. Continue reading and find out how to avoid undesired additional taxes, tax interest and/or tax penalties.
Dutch Tax Audit
Experience shows that mistakes can even occur in the bookkeeping of the most carefully managed companies. All too often such mistakes are detected during a tax audit. Too late, since those mistakes have serious repercussions. They usually result in additional taxes, tax interest and/or tax penalties.
Better than fixing them, is to avoid mistakes altogether. Just like the Dutch Tax Authorities do, DTS can perform a thorough examination of your bookkeeping. By such a fiscal audit, also called a (tax) due diligence, we sort out your bookkeeping before you are controlled by the Dutch Tax Authorities. Hence, you have nothing to fear in case of an unannounced tax audit.
We discuss the detected mistakes in confidence. In doing so, we advise you on how to reduce the existing mistakes as much as possible. DTS expresses these mistakes in monetary values. Hence, you may easily weigh the priority to address a particular risk. Moreover, we advise you on adoptions in order to avoid future mistakes and tax penalties.
Such a due diligence is a vast enterprise, which takes time and costs money. Nevertheless, we have never performed a due diligence that resulted in higher costs than money saved, as a tax audit often results in a tax liability. Such a tax liability endangers the continuity of your enterprise. A professional tax audit considerably reduces the risk of tax liability. This is of importance for future takeovers as well, since companies with latent tax liabilities are worth a lot less.
Our general due diligence consists of an examination of:
- Wage tax; and
- Corporate income tax; and
- Dividend withholding tax; and
- Sales tax or VAT; and
- Transfer pricing documentation, which has to meet new rulings since 2016.
You can also engage our services for a partial audit. Such an audit focusses on the bookkeeping with regards to, for example, corporate income tax.
Please feel free to contact us - free of charge - for more information.