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Everyone wants to pay less tax. It’s just that some don’t know how to do it. They, therefore, do nothing and declare as best they can the results of their entrepreneurial activity. Unfortunately, sometimes, in doing so, they make mistakes :GST Audit Consultants in Delhi
- Either in their statement;
- Either in their management of company resources;
These mistakes are negligent. It is a lack of mastery of tax law that leads business leaders to make errors that represent a relative tax risk. Because, of negligence or not, in the case of control, the tax authorities will require the regularization of the situation and may, if necessary, impose a fine.
There are also business leaders who know the workings of accounting and tax law. However, it happens that, based on this knowledge, some business leaders try to “optimize” their accounts, their management, and their declarations.
And for this:
- Decrease the result to declare
- Use company-owned resources on their own
- Reduce social security contributions etc.
In these cases, optimization can be “easy” or frankly a matter of outright fraud. The tax administration will be able to tell the difference. But it will heavily penalize these practices because they are being done knowingly.
RECOVERY: A RISK TO BE AVOIDED
However, no entrepreneur can wish to support tax penalties. Because it is a situation that can be extremely painful, even tragic. It sometimes happens that companies are even forced to go out of business and saying goodbye to your business for being careless or too greedy is a shame.
Especially since today, as everything is computerized, the tax administration has extremely efficient tools and indicators to target the companies to be audited.
TAX AUDIT: WHAT IS IT FOR?
The main purpose is to protect the company against tax risks by analyzing the management of the company and its accounting declarations. In doing so, the auditor or accountant handling the tax audit can do several things:
- List risky practices and establish recommendations to eliminate any future tax risk;
- Evaluate the sums not paid to the tax authorities which could be claimed in the event of an audit.
Through this assessment, the GST Audit Consultants in Delhi allow you to protect yourself. The business manager then has the option of setting up a reserve to cover these unpaid sums due.
He can then contact the tax authorities, report management/declaration errors, and negotiate a spreading of the payments of the sums due. It avoids the recovery and the sudden flight of cash.
If a business manager knows or suspects that he has made management and/or reporting errors, he should request a tax audit from a CA firm or an auditing firm, like CAC, to reduce his risk of recovery.
GST Implementation Firms in Delhi help prevent errors in registering for GST and paying the tax. In this way, companies reduce the likelihood of penalties and minimize the risks of additional charges during a tax audit.