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.
