Knowing what a tax audit is, it becomes easier to understand what its objectives are. A superficial look at the tax audit can make us believe that it would only serve to help the government raise more. But that’s not true. Tax Auditing helps the company to ensure that the correct amount of taxes is included in the price for end customers. After all, charging more taxes can make the company lose competitiveness in the market, and charging fewer taxes can make room for fines and losses. Recover taxes already paid on the purchase of inputs and other items used to produce goods and / or services, which can generate more cash for the company.
Understand the opportunities to use country legislation in favor of the company and change the impact of taxes. This can happen by changing some details of the transaction that may increase the use of taxes, or use legal aspects of tax incentives to pay fewer taxes legally.
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How to organize a good tax audit?
By looking at tax auditing as an opportunity and not as a bureaucracy, you can start preparing to organize a good tax audit procedure. Properly choose the tax regime that the company will adopt. Following certain rules, all companies can compare taxes owed by Simples, Presumed Profit and Real Profit, and choose the best tax model for their company. And in this case, consulting with a professional is recommended if you are an Independent contractor taxes.
In addition to a tax audit helping in all aspects that we have already talked about, it will also bring important information for the construction of good tax planning. Companies can choose different tax regimes between Simples, Presumed Profit or Actual Profit. Depending on the type of tax regime you choose, you can:
- Recover taxes that are embedded in the price of the inputs and goods that your company buys and the services that your company contracts, making the purchase price lower,
- Increase the amount of taxes your customers can recover from the products or services they buy from you, increasing your competitiveness.
Another important direction in which tax planning can follow is the use of tax incentives. But what is this? Tax incentives are permits granted by law that help the company pay less taxes or pay them in the future, freeing up cash flow. Depending on the type of activity, the place where the activity is carried out and the way it is carried out, there may be tax benefits that allow the company to pay fewer taxes.
A good preventive tax audit can identify these benefits and, with some adjustments in the operation, such as changing addresses, creating branches in other cities or states, or even changing the way of production, can allow a good tax savings.