Today, let’s look briefly at a few things we should know about tax audit.

Tax audit is a process whereby the Relevant Tax Authority (RTA) assesses the tax returns filed by a taxpayer, in accordance with the Law and its aim of the audit is to ascertain the correctness and completeness of the financial information, based on which the returns were filed.

A taxpayer could be an individual or a company/organization.

 Relevant Tax Authority refers to either Federal Inland Revenue Service (FIRS) for companies and State Internal Revenue Service (SIRS) for individuals.

These examinations could take any or a combination of the following

• Mail Audit – request is sent via mail
• Office Audit-  it is sent to the Tax Office
• Field Audit – Tax Authority conducts the exercise in taxpayers site
• Desk Audit – It is conducted by the desk officer

Note the following

1. The exercise is in accordance with Law; therefore all claims by either party should derive from the relevant Law
2. Just as you know your business also endeavor to acquaint yourself with relevant tax laws
3. It is the responsibility of a taxpayer to know the Laws governing their operations and comply with its provisions
4. The government and RTAs are constantly issuing guidelines to clarify grey areas; stay updated
5. Being a tax defaulter could cause a dent on your reputation and disruption your activities, therefore, all taxpayers have a responsibility of ensuring they are on the right side of the Law.
6. I advise you seek professional advice, whenever you are in doubt.
7. All resolutions should take their roots in the relevant laws of the Federation.

Also remember that tax is our contribution towards the governance of the State and not a payment for services received or to be received from government. It is our civic responsibility.