Dealing with a Revenue audit is a stressful time for both the tax payer and the accountant. The accountant's reputation may be called into question if client issues are not correctly identified and addressed.
When it comes to revenue audits the most important thing is to make sure that there are no surprises and to ensure that this happens it needs to be carefully planned and time should be spent preparing for the audit.
Just some of the methods used for Revenue Audit selection:
- REAP (Risk Evaluation Analysis and Profiling) system.Tax returns filed with Revenue are analysed and ‘scored’ according to certain rules which vary depending on the size and nature of the business.
- Revenue monitors failures to submit returns and to make payments of tax on time.
- Projects on business sectors
- Random selection
Revenue Audits can take many forms from verification audits, single tax heads, multi-tax heads to comprehensive.
If you are selected for a revenue audit you should seek a professional consultation.