Bits To Remember About Tax Audit
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
- The exercise is in accordance with Law; therefore all claims by either party should derive from the relevant Law
- Just as you know your business also endeavor to acquaint yourself with relevant tax laws
- It is the responsibility of a taxpayer to know the Laws governing their operations and comply with its provisions
- The government and RTAs are constantly issuing guidelines to clarify grey areas; stay updated
- 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.
- I advise you seek professional advice, whenever you are in doubt.
- 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.
