Meaning of Tax Audit
What is tax audit:
The tax audit is one through which the correct registration and settlement of the financial information of a company or individual is verified and analyzed, and compliance with their tax obligations before the State is verified.
In an audit, the accounting records and documentation that contain all the information related to the operations carried out by a company during a certain period of time are examined, analyzed and evaluated.
The objective of the tax audit is to determine the accuracy and completeness of the company's accounting, because thanks to this it is possible to know the real economic and financial situation of a company.
The information obtained from a tax audit, on the other hand, is useful both for the State, in order to determine whether the company or individual has effectively fulfilled their taxpayer duties, and for future investors, clients or credit institutions interested in do business with the audited company.
Compliance with the tax regulations of a legislation, for its part, is a duty of all companies and individuals. Any type of irregularity could carry penalties, since tax evasion is a crime.