Timelines for information sharing between the authority and a taxpayer are essential during tax audits:
The tax authority notifies the taxpayer about revealed errors (non-conformances, inconsistencies) seeking to provide explanations or amend the statements within 5 days.
Explanations should be provided in all cases.
If the Federal Tax Service Inspectorate considers the taxpayer's arguments provided in response to its requirements to be insufficient to withdraw claims, it submits a tax audit report.
The tax authority submits a tax audit report not later than 10 days if it reveals any breaches of tax laws and arguments are insufficient.
The tax authority should provide a tax audit report within 5 days.
The report entails no such legal consequences for the taxpayer as a tax prosecution, an additional charge of tax, charging penalties and corresponding fines, and the taxpayer's rights are not infringed. But if the taxpayer does not agree with the tax audit report, he/she/it should make a written plea. And such a plea should be sent to the tax authority within one month from the report service date.
The tax authority should analyze audit materials based on such a plea.
The materials should be analyzed and the decision should be taken within 10 working days from the date on which the timeline for pleading expires (one month from the date on which the in-house audit report was received) plus an additional month to prolong the period for analyzing audit materials.
According to Art. 101, Cl. 2, Paragraph 2 of the Tax Code of the Russian Federation an individual/an entity for which the tax audit was realized is entitled to take part in the analysis of audit materials in person and (or) by proxy.
The tax audit report can not represent an appeal subject but any procedural defects during its preparation and material violations of the tax audit procedure can be served as additional arguments and help a higher tax authority or court to reverse the decision of the Federal Tax Service Inspectorate.
Services of tax practice professionals as representatives:
Study of the Client's documents and materials
Study of court practice on each episode
Study of letters and explanations of the Ministry of Finance of Russia and the Federal Tax Service of Russia which confirm a corresponding position
Formulating a legal opinion based on available materials
Preparation and presentation of a written plea against the tax audit report
Preparation of a set of documents confirming validity of stated conclusions and its presentation to the tax authority