Revenue audits and other compliance interventions can seriously disrupt your business – and today, they’re more frequent and complex than ever.
New e-auditing techniques adopted by Revenue have created additional challenges. E-audits involve the interrogation of businesses' electronic records, making it easier for Revenue to detect non-compliance.
As a result, the risks and penalties associated with Revenue audits have never been higher. They include:
Successfully managing and resolving these interventions relies on strong relationships with Revenue and a thorough understanding of both tax legislation and the Code of Practice for Revenue Audit and other Compliance Interventions.
"44% of audits performed by Large Cases Division in 2016 involved e-Audits, yielding almost €12m."
Revenue carry out both audit and non-audit compliance interventions. Non-audit interventions can also be disruptive, and are often the pre-cursor to an audit.
Revenue audits, aspect queries and profile interviews can all be a serious drain on a company’s valuable resources. Preparing for and resolving these interventions effectively allows you to focus on your business, reduces the impact on your resources and minimises the final settlement.
You can minimise disruption to your business by staying informed of the changing Revenue practices and procedures and taking proactive steps to avoid disputes. By undertaking regular self-reviews, you can identify tax underpayments in advance of an audit and avail of reduced penalties. This will also help you to satisfy key obligations under the Directors' Compliance Statement and Cooperative Compliance Frameworks, both of which require companies to carry out annual self-reviews.
Where Revenue audits do occur, you should review your compliance under each tax head, disclose any underpayments identified and seek to bring the audit to a close as quickly as possible.
By doing so, you can avail of reduced penalties as set out in the Code of Practice for Revenue Audit and other Compliance Interventions.
The Revenue audit process involves a number of important milestones. To ensure that these milestones are achieved, our experience shows that the process is more manageable if it is broken down into key phases.
PwC's dedicated Revenue audit team, which consists of specialists from all tax heads, ex-Revenue officials and data scientists, has extensive experience helping clients through complex, multi-tax head audits. Our defined audit methodology means that we can minimise your monetary settlement with Revenue, while preventing undue disruption to your business.
We can guide you through all stages of the compliance intervention process by: