In conducting the examination, the Tax Examiner uses tax audit methods and techniques to test the Taxpayer’s compliance. In the discussion this time, we will discuss about tax inspection techniques. The tax audit technique is a means of collecting evidence, testing, or verification developed by the Tax Examiner to believe in the truth of the items being examined. In preparation for a tax audit, you will need a professional tax attorney. Nj tax attorney ready to help to launch tax audit.
Tax audits have certain techniques. To find out more, here are some techniques in tax audit:
– Testing the Validity of the Document.
Testing the validity of documents is a test conducted to believe the validity of a document to be used in the examination. If the Tax Examiner uses this technique, the inspection procedure that can be taken is to conduct research on the validity of documents such as affixing the authorized signature of the authorities, seal / stamp, and date of the document. Then clarify to the relevant parties, and request a taxpayer statement.
– Perform Analysis of Figures.
The analysis of numbers is the examination and decomposition of the numbers and their parts and their relation to the numbers on other headings to know the fairness of the number of a post.
– Proof Search.
Proof of evidence is an examination of evidence supporting a transaction in order to test whether a reported transaction has been backed up by sufficient competent evidence. The procedure that the Tax Examiner may perform in this technique is to identify the transactions related to the post being examined, then collect evidence supporting the transaction and match the contents of the evidence with the transaction to ascertain whether the proof of the transaction has been recorded and reported.
– Conducting Inspection (Nature and Production Process).
This inspection technique is conducted by reviewing directly to the place of domicile, place of business or free occupation, the residence of Taxpayer or another place to obtain confidence and more complete information on Taxpayer data such as business process or production process of Tax Payer that is valid and relevant according to the current conditions.