The so-called tax audit is performed to reduce the financial risks related to additional accrual of tax liabilities or punitive penalties by supervisory bodies. Taking into consideration the fact that our tax legislation contains a lot of disputable issues and fiscal approach in the course of the tax inspection prevails, the companies of large and medium business usually order audit on a quarterly basis or at other reasonable intervals in order to minimize those risks.
As a rule, we provide companies with the services of verification of their fiscal discipline using the audit procedures agreed with the customer. When finished, we prepare a detailed report on actual results of those agreed procedures. This form of cooperation enables the company to choose audit subjects, thus influencing its scope and cost. In the case of the audit of specific tax returns the materiality parameters and scope of audit are defined by the auditors.
Presently the International Financial Reporting Standards (IFRS) are applied at an accelerating rate globally, gradually forcing out national standards. The companies themselves (except public companies, financial organizations and other companies of public interest) take decision regarding the conceptual framework of their financial statements (Accounting Provisions (Standards) or IFRS). As a rule, the Ukrainian companies preparing the financial statements according to the IFRS for the first time, at this stage engage the advisors having respective experience in preparation of statements according to the IFRS.
Starting from 2013 the transfer pricing (TP) regulations are used in Ukraine. Norms in the sphere of transfer pricing changed over the last years. Presently the Tax Code states the requirement of the arm’s-length principle for transactions with related parties, contractors registered in certain jurisdictions or contractors of certain organizational-legal forms. Experts of our company constantly monitor the normative base in the sphere of TP, take part in all-Ukrainian forums and conferences related to the problems of TP reports on a regular basis.
We consult our long-term customers and all interested companies on the matters related to TP regulations:
- advice on identification of controlled transactions;
- advice on identification of a transfer pricing method;
- advice on preparation of the company policy in the sphere of TP;
- advice on preparation of the report of controlled transactions;
- advice on preparation of documentation package for controlled transactions.