Tax Audit Research Articles

TAX CONTROL AS AN ELEMENT OF INTERACTION BETWEEN TAX PAYERS AND TAX AUTHORITIES

The article analyzes the role and importance of tax control as a key element of interaction between taxpayers and tax authorities. It is determined that tax control is a key element of the tax system, since the functioning of the country's economy depends on its effectiveness, and forms of tax control contribute to the efficiency of tax relations. The elements and methods of tax control are considered, and it is determined that it operates within the framework of strict legal regulation and has a state character. It is established that in order to increase the activity of tax control, it is necessary to resolve the issue of interaction and mutual responsibility between taxpayers and the State. This is possible through the introduction of the basic principles of taxation and the formation of a tax policy that meets budget priorities and the organization of public expenditures. The article identifies the factors that complicate the implementation of tax control. Among them are the difficult financial situation of many taxpayers, the low level of tax culture and taxpayers' distrust of the tax authorities. These problems can be overcome by improving tax legislation, strengthening the responsibility of tax officials, and by taking measures to raise awareness and educate the public about the importance of paying taxes correctly. It is analyzed that the digital transformation of tax audits leads to a significant reduction in the time required for their conduct and an increase in the likelihood of detecting tax evasion. However, this process faces a number of problems that can be solved by amending the relevant legislative acts

Tax control as a tool to curb the shadow economy

Subject. Numerous scientific works in the field of tax administration are devoted to the problems of tax regulation, the imperfections of current tax legislation, as well as the identification of the causes of the functioning of the shadow economy and ways of tax evasion. However, the issues of economic security of the state and tax control in its provision have been little studied today, despite the entry into force in the legal field more than six years ago of the Decree of the President of Russia dated May 13, 2017 No. 208 "On the Strategy of Economic Security of the Russian Federation for the period up to 2030". Thus, the object of the study is tax control, the subject is the effectiveness of on–site tax control as a factor in identifying and suppressing shadow activities in order to ensure the economic security of the country and its public legal entities. Purposes. To summarize approaches to the definition of the term "shadow economy", to distinguish methods for identifying factors of business fragmentation and optimizing the tax burden. Based on the data obtained, we propose an approach to the tax administration process that allows us to quickly respond to "risk signals" in the process of selecting candidates for tax control measures and further conducting tax audits, with a high probability of their effectiveness.Relevance. Tax control is an important regulator of the economic security of the state. The issues of its improvement in order to increase its efficiency and effectiveness have been important at all times. Currently, issues related to the shadow economy are one of the urgent problems affecting the economic development of the country and the functioning of tax systems. Understanding the term "shadow economy" and developing effective counteraction methods are important for tax authorities and society as a whole.Methodology. In the existing conditions of the study, the analysis of the database of tax authorities is carried out (without providing information about taxpayers), the analysis of judicial practice, and methods of logical and statistical analysis are also used. Thus, in the course of the study, the works of foreign and domestic authors were analyzed in order to study the terms "shadow economy" and "business fragmentation". The data of statistical reporting of tax authorities are analyzed, the dynamics of efficiency and effectiveness of on-site tax control are analyzed. The arbitration practice of court cases on the application of business fragmentation schemes by taxpayers has been studied and analyzed, which made it possible to identify a number of distinctive features of business fragmentation from its optimization in order to ensure the sustainable development of organizations (taxpayers) and, based on these indicators, propose a methodology for identifying tax evasion schemes in order to select candidates for on-site tax control.Conclusions. The conducted research allows us to develop the theoretical aspects of such concepts as "shadow economy" and "business fragmentation". Having analyzed the works of domestic and foreign researchers, the author substantiates his definition of the concept of "business fragmentation". The author provides a system of the most significant indicators that can be fully taken as the basis for risk benchmarks signaling the use of fictitious tax optimization schemes by the taxpayer.

Tax Audit, Tax Penalty and Tax Compliance: A Case Study of Pakistan

Tax Audit, Tax Penalty and Tax Compliance: A Case Study of Pakistan

Banned: Fishing in the Data Tax Lake?

Data gathering and analysis are valuable tools in the global fight against tax fraud. However, their use raises significant legal questions, particularly regarding the extent to which it could qualify as a prohibited fishing expedition. Previous research identified two main characteristics of fishing expeditions: speculation and excessiveness. Judges and scholars claim fishing expeditions are prohibited even though a specific legal ground for this prohibition is lacking. Therefore, it is crucial to examine the legal grounds that can be relied upon to assess the legitimacy and limitations of (big) data tax audits in relation to the prohibition of fishing expeditions.By analysing case law from the Council of Europe, the European Union, Belgium and the Netherlands, this article identifies the implicit legal grounds that support the prohibition of fishing expeditions. It demonstrates how the prohibition is incorporated into the human rights framework, the general principles of good governance and the relevance criterion embedded in European and national legal provisions with regard to investigative powers of tax administrations, providing a comprehensive perspective on their rationale to prohibit fishing expeditions.

Virtual Digital Metaverse Chartered Accountant

A globally renowned financial expert that oversees customers' budgets, audits, taxes, and company strategy is a chartered accountant. You can work for companies, the government, or private citizens as a CA Assisting clients with money management and offering professional financial advice are your duties. For the accounting sector, the emergence of virtual reality (VR) and the metaverse offers an exciting opportunity. Modern technologies like blockchain, artificial intelligence (AI), and data analytics, which come together to form a virtual environment that reimagines the function of the accountant, are the foundation of this paradigm shift. Virtual Digital Metaverse Chartered Accountant is what we're working on. By using artificial intelligence (AI), one may automate repetitive processes related to financial reporting, taxation, predictive analytics, business intelligence, and automation of regular tasks. Chartered accountants are becoming increasingly important to the growth and recovery of the Indian economy. They guarantee honest, ethical trade and commercial practices, support the smooth operation of businesses and organizations, and apply their financial know-how to different economic and financial initiatives aimed at improving the country. They are therefore crucial to boosting the economy. Forecasting the budget, tax audits, creating monthly financial reports, capital planning, tax planning, and other duties are all part of the CA's job description. Additionally, since the GST was implemented, their function has grown stronger and more significant

Does Tax Audit Enhance Tax Compliance? The Role of Tax Education and Fear-Appealing Messages

The study explores the role of tax education and fear-appealing messages in the linkage between tax audit and tax compliance among corporate entities. Data was collected from 205 corporate entities using questionnaire as an instrument. The data was analysed using the PLS-SEM. It was observed that tax audit enhances tax compliance among corporate entities. Again, while tax education partially mediates the linkage between tax audit and tax compliance, fear-appealing messages negatively moderate the relationship between the two. The study concluded that regular tax education during tax audits enhances tax compliance but does not release threatening messages to taxpayers. It was recommended that tax revenue authorities should increase tax audit frequency and educate tax payers during the audit exercise. This has the tendency to improve the level of tax compliance among corporate entities.

АУДИТ ОПОДАТКУВАННЯ В СИСТЕМІ НЕЗАЛЕЖНОГО ЕКОНОМІЧНОГО КОНТРОЛЮ В УМОВАХ ВОЄННОГО СТАНУ: СУТЬ, ПРОБЛЕМИ, ПЕРСПЕКТИВИ

Introduction. Taxation audit is an independent check of the company's tax reporting for the purpose of confirming its authenticity and warning about additional payments to the budget in the form of taxes and fines that may be added by state control bodies in the future. Problem Statement. Today, the definitions of “taxation audit” and “tax audit” are not clearly defined in the economic literature, there is no clear model of taxation audit in the conditions of martial law. Purpose. To improve the categorical apparatus “taxation audit”, to analyze the place of taxation audit in the system of independent audit; to develop measures for improving the organization of its conduct. Methods. Theoretical approaches to the “taxation audit” category by various scientists, official data from the public report of the State Tax Service of Ukraine, results of the research work of the Department of Financial Analysis and Taxation of the State University of Trade and Economics were used. The methods used are: generalization, systematization, comparison, critical analysis, grouping, evaluation, coefficient analysis. Results. The results of research into the economic essence of “tax audit” are highlighted. The author's interpretation of the “tax audit” category is designed. An analysis of tax audit methods was carried out, a general model of taxation audit for small business enterprises was developed. Conclusions. The interpretation of “tax audit” proposed by the authors will make it possible to identify new criteria for distinguishing (detection) and classifying tax audits, thereby improving the provision of management decision-making, which will provide a greater probability of knowing the object.

Analisis Penggunaan Teknologi Informasi terhadap Efektivitas Audit Pajak

The implementation of information technology in tax audits also faces a number of challenges. One of the main challenges is data security. Information technology stores a number of sensitive data such as taxpayer financial data, therefore, it is important to ensure that this data is safe from misuseInformation technology can help the government monitor tax compliance and detect potential tax violations. This research aims to analyze the use of information technology on the effectiveness of tax audits, whether the use of information technology can ensure that taxpayers carry out their tax obligations correctly and fairly. By reviewing relevant literature studies by combining research topics. The methodology used is qualitative research. The results of this research show that the use of technology has a positive influence on the effectiveness of tax audits and information technology can improve accuracy, efficiency and service quality in tax audits. It can be concluded that information technology helps auditors in detecting tax irregularities.

ANALISIS PENGARUH SOSIALISASI PERPAJAKAN, PEMERIKSAAN PAJAK, DAN PENAGIHAN PAJAK TERHADAP PENERIMAAN PAJAK PENGHASILAN WAJIB PAJAK BADAN PADA KPP PRATAMA MEDAN BARAT

The purpose of this study was to determine the effect of tax socialization, tax audit, and tax collection on corporate taxpayer income tax revenue at KPP Pratama Medan Barat. The number of corporate taxpayers sampled in this study were 100 respondents. The sampling method used in this study uses the slovin technique, while the data collection method used in the data processing used is multiple linear regression analysis. The results of this study indicate that tax socialization, tax audits, and tax collection are proven to have a positive effect on income tax revenue. The variable that has the most significant influence on income tax revenue is tax audit with the largest beta value among other independent variables

Tax compliance auditing as a tool for detecting and preventing tax risks for the detection and prevention of tax risks

Tax auditing is a fundamental practice in financial management, evolving from its origins in Great Britain to become an essential global tool. Its objective is to evaluate and verify financial information to ensure regulatory compliance and transparency. This study analyzed good practices in tax audits, highlighting the importance of planning, impartiality and regulatory compliance. Innovative methodologies, such as data analysis and risk-based auditing, were also explored to improve process efficiency. The results highlighted the need for effective tax management and the prevention of economic crises in organizations. In conclusion, tax auditing is crucial to ensure compliance with tax obligations and improve the financial management of organizations, promoting transparency and efficiency in the management of financial resources.

Exploratory Factor Analysis for Items Measuring of The Tax Auditors’ Performance

Tax auditors play an essential role in tax audits to ensure governments can overcome non-tax compliance issues and protect tax revenues for the nation. Tax auditors are expected to perform their tasks efficiently and effectively in examining the taxpayer’s declaration. The tax auditors' performance determines the success of tax audit implementation. Several factors can influence the tax auditors’ performance, including auditors’ effort, professional skepticism and task complexity. Therefore, this study aims to develop a valid and reliable research instrument to measure tax auditors’ performance using the Exploratory Factor Analysis and internal reliability test (Cronbach’s Alpha). A total of 100 tax auditors from the Inland Revenue Board of Malaysia and the Royal Malaysian Customs Department were selected as respondents to participate in this study. The data was collected using the online Google Forms with 5 Likert scales and was analysed using IBM-SPSS Version 27. The results show that out of 34 developed items, only 30 remained as constructed items. The remaining items were deleted due to the low loading factor of less than 0.40. Thus, this study validated the research instrument to proceed with the Confirmatory Factor Analysis (CFA) in the following step using the validated research instrument.

TAX RISK ASSESSMENT OF TAX CONTROL PERSONS: REGIONAL ASPECT

The article analyzes the issues of assessing the tax risks of individuals, tax audits (before and during tax audits). The territorial features of tax control (industry) are considered, Geographical, financial, Innovation and Investment). Key tax schemes identified, Identifying tax risks on individual taxes. The main factors of tax risks in individuals are substantiated, Payments to individuals for certain taxes. Research writing purposes: determining the main tax risks, which arise for taxpayers on separate taxes and to allocate factors of tax risks taking into account regional features. The conclusions received during the research: Estimated current situation on personal income tax, Insurance taxes, VAT at the regional level and the possibilities of eliminating tax risks.

ASSESSMENT OF TAX RISKS OF PERSONS, PROFESSIONAL INCOME TAXES

The article analyzes the issues of assessing the tax risks of individuals, Transferred to Professional Income Tax. The features of tax control are considered, in the current economic situation (preventive, Current, Before and after tax audits). The main measures of tax control are highlighted, used to improve its effectiveness, and the implementation of pre-test analysis in the context of identifying tax schemes involving self-employed persons. Suggested options for determining the amount of tax risk. Tax risk matrix developed, which it is advisable to implement in the mobile application «My tax». Purposes of writing a research paper: to identify the main tax risks, Taxpayers who have a tax on professional income and highlight the areas of their assessment. Conclusions, obtained in the course of the study: the current situation on the implementation of tax control of self-employed persons is estimated and the possibilities of eliminating tax risks are considered.

Issues of Improving the Implementation of Tax Control when Managing Tax Risks and Tax Audits

This scientific article highlights current issues in the field of reforming tax administration in the Republic of Uzbekistan, on further improving the activities of state tax authorities and the formation of a “digital economy” with high efficiency and development of the system, as well as accelerating the implementation of generally recognized international norms and standards in the field of tax control in national legislation clarifies the essence of the issues and explains the procedural rules of these processes. In particular, the determination by the State Tax Committee of the Republic of Uzbekistan of the strategy and tactics of the tax risk management system, collection and processing of information, analysis and assessment of tax risk, development and implementation of measures to manage tax risks is emphasized. The author provides a definition of the concepts, tax risk - that is, it is the possibility of non-fulfillment or incomplete fulfillment by the taxpayer (tax agent) of tax obligations, which can lead to non-payment or incomplete payment of taxes and fees to the budget system. At the same time, the level of tax risk is a state of risk, which is determined depending on the likelihood of the risk occurring and its possible consequences. From the above, the need to automate procedures for compliance with tax legislation and simplify its procedure is analyzed. The importance of introducing simplified mechanisms to extend the deadline for paying taxes or installments was emphasized. Here, every tax official, entrepreneur and taxpayer must thoroughly master the rules of the Tax Code, for which they need regular training. At the end, recommendations were developed for involving prestigious, influential foreign experts with extensive practical experience in this field in this process.

The Effect of Tax Audit and Tax Collection on Increasing Corporate Taxpayer Compliance at KPP Pratama Pasar Rebo, East Jakarta

This study discusses the effects of tax audits and tax collections on increasing corporated tax payer compliances at KPP Pratama Pasar Rebo East Jakarta (2017-2020), which aim to test and analyze effects of tax audits and tax collection on increasing corporated tax payer compliances. This research method uses descriptive statistical methods. These studies were test use data analyst method including descriptive analyst test, classic assumptions test, hypothesis testing, multipled linear regression analyst and coefficients of determination testing. The result of these studies shows that significances of effects of tax audits on increasing corporate tax payer compliance at KPP Pratama Pasar Rebo, East Jakarta (2017-2020) was 0.018 <0.05 and t (count) value was 2.515 > t (table) 1.706 so that it could be This means that tax audits have a positive effect on corporate tax payer compliances. Furthermore, the effect of tax collection on corporate tax payer compliance is 0.000 <0.05 and t (count) values is 11.988 > t (table) 1.706, in other words that taxes collection has a positive effect on corporate tax payer compliances. Likewise, it is known that taxes audit and tax collections is 0.000 <0.05 and F value (count) 81.506 > F value (table) 3.354 so it can be concluded that taxes audit and tax collections have a simultaneous effect on increasing corporate tax payer compliances. Keywords: Tax Auditor, Tax Collection, Corporate Tax payer Compliances

Moderating Effect of Tax Audit Probability on the Causality Between Taxpaying Attitudes and Tax Compliance Behaviour in Restaurants of Uasin Gishu County (Kenya)

Moderating Effect of Tax Audit Probability on the Causality Between Taxpaying Attitudes and Tax Compliance Behaviour in Restaurants of Uasin Gishu County (Kenya)

Registration shutdown of tax invoices / calculations of adjustments: prerequisites and consequences

This article covers the prerequisites and consequences of introducing a mechanism for the registration shutdown of tax invoices / calculations of adjustments. In fact, any innovations related to the administration of taxes and fees in the future have both negative and positive consequences for the state and business. That is why timely identification of negative consequences and shortcomings helps in the operational research and improvement of tax administration mechanisms, in order to increase the level of revenues to the state budget, reduce the level and risk of corruption and tax evasion, increase the level of business activity of businesses, as well as in order to prevent future scaling and generate concomitant negative consequences for the economy and budget of the country as a whole. We have studied current publications and articles of modern scientists and practitioners related to the administration of value-added tax. An assessment of the effectiveness of the current mechanism for the registration shutdown of tax invoices / calculations of adjustments is given. The main problems and incomplete development of the current procedure for the registration shutdown of tax invoices / calculations of adjustments, administrative and judicial appeals against decisions of regulatory authorities are highlighted. The consequences of introducing a mechanism for the registration shutdown of tax invoices / calculating adjustments on the level of economic activity of businesses, the judicial system of Ukraine and the tax system as a whole are studied. Based on the conducted research, we provided recommendations on ways to improve the existing system of value-added tax administration in the context of the mechanism for the registration shutdown of tax invoices / calculations of adjustments. In addition, options were proposed for combining electronic document management systems, tax audit, as additional monitoring tools for the electronic value-added tax administration service.

"OʻZBEKISTONDA SOLIQ TEKSHIRUVI VAZIFALARI VA PRINSIPLARI HAMDA QONUNCHILIKNING RIVOJLANISH TENDENSIYALARI "

"In this article, the author analyzed the categories related to the institute of tax audit, in particular the objectives and principles of tax audit. The purpose of this study is to develop proposals and conclusions aimed at revealing the essence of the tax audit as a result of the study. In order to prevent the illegal interference of tax authorities in the activities of taxpayers, it is relevant to clearly define in the tax legislation the legal foundations of the tasks and principles of conducting tax audits. The tasks of the tax audit follow the objectives and functions of the tax authorities, and the main issue is to ensure payments to the state budget without negatively affecting the morale of taxpayers. A comparative legal analysis of the legislation of national and foreign states has been carried out, and proposals have been developed on the task, principles, and development of legislation on tax audit in national legislation. These proposals are used in scientific activities, lawmaking, law enforcement practice, interpretation of tax legislation, and improvement of national legislation. During these inspections, it is relevant to clearly define the rights and obligations in the relationship between tax authorities and taxpayers, as well as to consolidate the basic principles. "

Work Overload, Time Pressure and Social Influence on the Work Efficiency of the Financial and Tax Auditor: Evidence from Peru

Objective: This research presents a research model on the effects of work stress and its components: work overload, time pressure and social influence on audit efficiency, taking into account the perceptions of both the financial and tax auditor. Methodology: A partial least squares structural equation model (PLS-SEM) was used on the basis of a total of 240 responses from financial and tax auditors belonging to the Professional Associations of Lima and Callao in Peru. Results: According to the PLS-SEM model, it is suggested that work overload is the most important factor affecting audit efficiency. Time pressure has an impact on the quality of work, as well as social influence on audit efficiency and its components: quality of work and employee welfare. Research Implications: Further research could address the evolution of the effects of the variables. Also, cross-cultural research should be considered, considering other cities in Latin America. Practical Implications: Senior management and boards of audit firms should consider constructing a career path that encompasses the variables investigated and their impact over time on the auditor's career. Originality/value: The study contributes to the development of scientific literature on the characteristics of financial and tax auditing in Peru and the behavior of auditors.

The Implementation of Tax Indirect Auditing Methods in Greek Economy Against Tax Evasion

This article aims to review and analyse the indirect auditing methods that were applied in Greece for the first time at the beginning of 2012 as a tax auditing tool, for the more comprehensive identification of taxable items. By employing the use of indirect auditing methods (mark-up method, net worth method, source and application of funds method, unit & volume method and bank deposits and cash expenditure method) an attempt is made to determine withheld taxable items, other than those measured by the tax forms and the official accounting books and taxpayers’ tax data, by utilizing the information from various sources and bodies. At the same time, a survey was carried out, on a randomly selected sample of 517 respondents, for analysing the awareness of Greek taxpayers regarding the use of indirect auditing methods as well as the general population’s awareness of their basic tax obligations. A total of 96.13% of the population were not aware of indirect audit methods while 79.88% expressed the belief that being aware of them can potentially increase citizens’ tax compliance. The survey highlighted that regarding indirect tax audit methods the level of knowledge of the general population is very low, necessitating the organized and systematic promotion of these new methods by the Tax Authority, which can lead to the disclosure of withheld (shadow) taxable items and thus achieve greater tax compliance in the long term.