Tax Inspections

If your business is expecting an inspection by public authorities, you have to make sure in advance that you can prevent any potential negative impact. There is a variety of organizations that can conduct business inspections. For example, these include tax authorities, prosecutor’s office, financial inspection authorities, as well as law enforcement authorities and officials (if they have legal reasons to conduct such inspections as provided by law).

Law enforcement authorities (police, tax authorities) may conduct such inspections to reveal any infractions committed by the company. In order to pass the inspection successfully while protecting the interests of the organization, it is ideal to have an attorney or lawyer present during this process.

To avoid these stressful situations, or to make sure they go as painlessly as possible, you should know your rights, as well as rights and obligations of the law enforcement officials. In more complex situations you also need to know how to use your knowledge, and how to apply it when necessary, in the given circumstances with respect to inspection officials.

Officials of Economic Security Department and Tax Infraction Department may be conducting their investigation procedures openly, where they are not trying to hide their actions, or in a covert operation. Investigation of company’s premises is an open event whereas the police officers can only inspect the building, study the documents and materials that are publicly available. They cannot open locked cabinets, and they cannot retain employees against their will or conduct personal search.

How we can help:

An experienced lawyer will help avoid situations of violation of rights and interests of the company, its management and employees. The lawyer will immediately spot any infractions however small they may be. The lawyer will not allow officials to seize business documents that are not required for the inspection; will appeal unlawful detention of employees at the office, or personal search;

An expert who has the right knowledge will not only provide timely assistance during police or tax authority inspections, but will also explain how to benefit from your rights in the most efficient manner; will prepare and submit the required documents; file a complaint against any illegal or unlawful actions by law enforcement authorities. We know cases when inspection authorities committed violation of rights of the legal entity as well as individual employees; actions that went unpunished. Extraction of important business documents often led to suspension of business activities which is a bad reflection on company’s business reputation;

Lawyer works out defense strategy; establishes reasons for inspection; settles conflicts in court if there are criminal charges;

Lawyer does not allow police officers to abuse their power, or confronts them during the investigation and files a complaint against their actions later. It is justified and effective to have an experienced attorney present on-site during an inspection. It can make a difference in protecting the reputation of the company and its future.

We can offer the following solutions:

  • Assist at off-site tax inspections. An off-site tax inspection takes place at the offices of tax authorities using tax declarations (calculations) and documents provided by the tax payer, as well as other documents outlining activities of the tax payer as available to the tax authorities. Such inspection is performed by tax officials in accordance with their official duties, whereas they do not have to present a special order by the chief of the tax authority, within three months from the time when the tax payer presents tax declaration (calculation) and addendums thereof. Tax inspector will often ask for additional documents and information during the off-site inspection, besides tax declaration and addendums (in particular, when filing for VAT refund). Such requirements are not always justified and legitimate. We can suggest which documents have to be prepared for inspection, and in what form;
  • Assist at on-site tax inspections. An on-site inspection takes place at the offices (premises) of the taxpayer, or if impossible, at the offices of tax authorities based on the decision of the Chief (Deputy Chief) of the tax authority. Such order is issued by the local tax authority where the company is based. The purpose of on-site inspection is to verify the correctness of tax calculation and timeliness of tax payments. On-site inspection may check taxes for not more than three years prior to the year when the order for tax inspection was issued;
  • Attorney will be present at your office in case an on-site inspection is ordered;
  • Provide phone consultations about proper course of actions until the attorney arrives;
  • Explain your rights and responsibilities, as well as rights and responsibilities of the law enforcement officials (verbal /written);
  • Provide explanations in person at your office;
  • Provide specific recommendations and rules of behavior for company’s personnel and management during tax inspection;
  • Analyze the situation, collect information, including identifying the reasons why tax inspection is taking place, and the intentions of the inspection authorities;
  • Settle any disputes with law enforcement authorities and tax authorities;
  • Participate in person during investigation and confiscation of documents at your organization;
  • Prepare response to requests received from inspection authorities, and file complaints against infractions committed by those;
  • Represent Client if summoned to the tax and law enforcement authorities;
  • Appeal Tax inspection reports;
  • File complaints with court;
  • Represent Client in court.