Tax Review and Audit – Indispensable Knowledge for Management

At the beginning of this year, the tax advisors from our firm conducted a CIT and VAT tax review for 2023 for a company operating in the employment agency services sector, generating significant revenues exceeding 20 million PLN.

The company has been active in the market for several years but had not previously commissioned a broader legal and tax analysis of its CIT and VAT settlements. It relied on outsourced accounting and payroll services, having full trust in the person responsible for its bookkeeping and tax settlements.

A casual tax inquiry prompted the CEO to approach our firm and ultimately entrust us with a full analysis of the company’s tax settlements for 2023.

We carried out a detailed examination of the company’s tax situation, verifying compliance with tax regulations for transactions and documents. During the audit, we identified deficiencies even in fundamental areas, such as:

• Delays in recognizing revenue and VAT obligations,
• Omitting some purchase invoices from the books,
• Incorrectly recording purchase invoices as sales,
• Failing to withhold and remit withholding tax for recruitment services provided by a foreign entity.

Our work was summarized in a concise report, enabling the CEO to:

• Gain broader tax insights “at a glance,”
• Identify not only tax underpayments but also overpayments, indicating potential areas for reducing tax liabilities,
• Make corrections to settlements prior to a tax audit, thereby avoiding substantial financial penalties under the Fiscal Penal Code,
• Decide to replace the accountant and transition to ongoing support from our tax advisors.

Tax audits and reviews are often associated with inspections, but it is worth recognizing their benefits. By entrusting your books, documents, and records to the advisors at our firm, you can leverage our expertise!

Let’s work together!