Courier / Delivery Biker Agents
April 13, 2021
Agricultural business in Cameroon
May 17, 2021
The main aim of a tax audit is to verify and understand information contained in your tax return. Many taxpayers become stressful when they receive a notification for a tax audit.
However, this should not be a problem if you had proper preparation and had been maintaining and keeping good records.
In my previous post, the right to control taxes – on-the-spot check, I promised to share with you what has to be done if a tax audit is postponed.
A tax control or audit can be postponed by the tax authority as well as the taxpayer if they are not ready for the on-the-spot check.
What if the tax audit is postponed?
An on-the-spot check can be postponed by the tax authority and the taxpayer may as well request for it to be postponed.
In case the initial date of the first audit is changed by the tax authority, they have to send a corrective notice to the taxpayer.
As said earlier, the taxpayer may also request for a postponement of the tax audit date.
An application request for postponement should be sent to the tax administration 15 (fifteen) days following the reception of the tax audit notice.
In case the tax authority doesn’t respond within 15 (fifteen) days after the application was deposited, it’s considered to have been approved.
Keep good records!
The fact that you’re regular with your taxes doesn’t mean that your business will not be called for a tax audit . Tax controls can happen anytime and doesn’t necessarily mean it’s an accusation of wrongdoing by the taxpayer.
As a business, keeping good records is very important, especially if you don’t want any trouble with the tax administration. Keeping good records:
- Helps you to monitor your business’ progress
- Helps identify your sources of income
- Keeps track of your expenses, especially those that are deductible for tax purpose
- Used to prepare financial statements for your business and
- Used as support items when preparing your statistical and tax returns.
No taxpayer will be happy when they receive a letter from the tax administration. Many go at great lengths to avoid a tax control. Such usually happens when the taxpayer wasn’t keeping good records.
This is a major problem with small businesses as some are unable to employ professionals to manage their business records for them.
However, you can outsource accounting and bookkeeping to experts who can handle it better for you.
List Your Products & Services on Nexus Listings for FREE!
Source(s): Directorate General of taxation
