- Tax investigation
Tax investigation is an in-depth investigation processed by tax authority in order to recover tax undercharged in previous years of assessment. It means that the taxpayer is suspected regarding to
tax evasion , or just byrandom sampling .Reasons
* Taxpayer fails to lodge tax return.
* Taxpayer fails to provide information requested by the tax authority.
* Taxpayer submitted incorrect information to tax authority.
* The corporation's auditor makes a qualifiedauditors report .
* The tax return states an unreasonably low turnover,assessable income orprofit percentage.
* Tax authority received report by a third party regarding the tax evasion.Ways to quantify the tax undercharged
* Interviewing with the taxpayer.
* Field visit to the taxpayer's premises.
* Observation of the taxpayer's business operation.
* Examination of the books and records.
* Enquiry on third parties including bank balance confirmation.
*Asset betterment method calculation to find out the discrepancy, tax undercharged amount.
* Post tax audit meeting.
* The issue of tax assessment or additional assessment.
* Prosecution or an additional tax assessment.ee also
*
Tax collection
*Tax administration
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