In which cases can a corporation tax audit occur?
February 24, 2024 | 50,00 EUR | answered by Mia Köhler
Dear tax advisor,
I have a question regarding corporation tax and possible tax audits. In our company, a GmbH, we are dealing intensively with the topic of corporation tax and want to ensure that we comply with all tax regulations correctly. However, I am concerned that a tax audit may occur and I wonder in which cases these are carried out in relation to corporation tax.
Our company has grown significantly in recent years and has undergone some extensive tax changes. We have taken various tax optimization measures to minimize the corporation tax burden and are aware that this could pose a potential risk for a tax audit. Therefore, I would like to learn more about the factors that could trigger a tax audit in relation to corporation tax.
I am worried that any irregularities or errors in the tax documentation could lead to a tax audit and I want to avoid our company getting into such a situation. Therefore, it would be helpful to know possible reasons for a tax audit in relation to corporation tax in order to take appropriate precautions.
Could you please provide me with more information on in which cases a tax audit in relation to corporation tax may occur and what measures we should take to prepare ourselves best and minimize potential risks?
Thank you in advance for your support.
Kind regards,
Tobias Kraft
Dear Mr. Kraft,
Thank you for your question regarding corporate tax and potential tax audits in your company. It is very understandable that you are concerned about compliance with tax regulations and want to ensure that your company is well prepared in case of a tax audit.
A tax audit related to corporate tax can be conducted for various reasons. Generally, a tax audit is carried out to verify the correctness of a company's tax situation. In particular, it is checked whether the information in the tax return is correct and whether tax regulations have been complied with.
Several factors can trigger a tax audit in relation to corporate tax. These may include noticeable deviations or inconsistencies in tax returns, a significant increase in profit or revenue, tax optimization measures such as the use of tax loss carryforwards or tax planning, as well as industry-specific risks or focus audits.
To best prepare for a potential tax audit and minimize potential risks, I recommend carefully maintaining the tax documentation of your company and keeping all tax-relevant documents complete. It is also important to transparently and comprehensibly document your tax actions and seek expert advice in a timely manner for tax decisions.
Furthermore, it may be beneficial to introduce regular internal controls and compliance measures to identify and avoid potential tax risks early on. Collaborating effectively with your tax advisor can help you comply with tax regulations and prepare your company for a possible tax audit.
I hope that this information is helpful to you and I am available for further questions. Thank you for your trust and attention.
Sincerely,
Mia Köhler
