Tax Monitoring


Tax Monitoring

What is tax monitoring?

Tax monitoring (TM) is a modern form of tax control, which implies close interaction of tax authorities with business through integration into corporate information systems of taxpayers.

Advantages of switching to TM:

  • Elimination of desk and field inspections.
  • Reducing terms of tax control.
  • Reducing time, financial and labor costs for tax administration.
  • Obtaining a reasoned opinion about completed or planned transactions.
  • Minimization of tax risks.
  • Lack of fines and penalties./li>
  • Reducing the number of court cases of tax disputes.
  • Confirming reputation of a bona fide taxpayer.
Criteria of entrance to tax monitoring system. The following conditions should be simultaneously met:

  • total amount of taxes to be paid (VAT, excises, income tax, mineral extraction tax) - not less than 300 million roubles;
  • the annual amount of income - not less than 3 billion roubles;
  • total assets - not less than 3 billion roubles;
  • ** Calculations are made according to the data of the calendar year preceding the year in which the application for tax monitoring is submitted.
  • availability of an internal (tax) control system (ITCS);
  • organization of information interaction between a company and tax authorities.
Documents for tax monitoring:

  • application for tax monitoring;
  • regulations of information exchange;
  • documents regulating the system of internal (tax) control;
  • accounting policy for taxation purposes of a company.

Key dates of entry and deadlines:

Diagnostics of the current status of the company in order to switch to tax monitoring mode:

  • assessment of the degree of readiness to participate and the preparation of measures;
  • development of methodological recommendations on compliance with the necessary requirements for joining the system;
  • statement of the identified tax risks and analysis of the ITCS;
  • preparation of a roadmap and coordination with the tax authority.
Development and optimization of internal (tax) control system and tax risks system:

  • assessment of the internal tax control system and its effectiveness;
  • methodological support of the system implementation;
  • design of structure of control procedures and disclosure of tax reporting indicators.
Design and improvement of business processes of information exchange with tax authorities:

  • analysis and description of IT-systems;
  • selection of information interaction technological platform (remote access to accounting system, "Data Showcase"; telecommunication systems);
  • implementation and methodological support.

Preparation of complete set of documents for tax monitoring system:

  • development of regulations of information exchange with tax authorities;
  • preparation of documents regulating the system of internal tax control;
  • support of the submitting process and control.
Рената Плотникова

Renata Plotnikova

Director of Business Support