How a tax inspection can impact workers
Posted: Sun Dec 22, 2024 4:48 am
Hearing about a tax inspection for a businessman must be something similar to when centuries ago people spoke of the Court of the Holy Inquisition, although obviously the excesses of the inquisitorial Court are not comparable to the torture of the inspected taxpayer's pocket. But, is the businessman the only one tortured, or do the effects of tax inspections have collateral effects ?
Although the employer is the main victim, the workers are the sufferers , in many cases innocent, who pay with their jobs the consequences of the tax inspections, since the fines imposed can in many cases even lead to the liquidation of the inspected companies.
Furthermore, providing information within the time limits required by the Tax Agency may mean that the administration departments may have to work numerous hours of overtime qatar email list to carry out daily work and collect the information requested by the Tax Agency.
The tax inspection is something that affects the entire company , investments are paralyzed, time is short, but it is a time of uncertainty. What will the sanction be? Will workers be laid off? Will a redundancy plan be carried out? Will the company survive?….
What information may the Tax Agency require?
Although the requirements to request information from the Treasury are:
That this is in the possession of the person inspected.
That it has tax significance.
That there is no obligation to have provided them through the corresponding declarations.
Notwithstanding these limitations, inspectors may request almost all information held by the person being inspected , if they consider it to be of tax significance.
Generally, photocopies of invoices supporting commercial transactions with a third party are requested , whose identification is notified in the request; as well as the means of payment/collection of said invoices with the provision of documentary justification and, where applicable, justification of the fact that the amount of said invoices does not coincide with that stated in the annual declaration of transactions with third parties (Form 347).
Banks are also required to provide information of tax relevance requested by the Tax Agency in the context of an inspection. The inspection or collection bodies may choose between requesting banking information from the affected taxpayers or requesting it directly from the banking entities with which they operate.
Consequences of the Law on the Reform of the General Tax Law in the field of tax inspections
The Council of Ministers approved last Friday, April 17, the submission to the Cortes of the Bill for the Reform of the LGT, where the powers of verification and investigation are extended , regulating the right to verify tax obligations in the case of prescribed years, whenever necessary in relation to obligations of non-prescribed years. A period of ten years is set for the verification of bases or quotas compensated or pending compensation or deductions applied or pending application.
Furthermore, the procedure for administratively settling tax debts is approved even when there are indications of a crime against the Public Treasury having been committed and the procedure for collecting such debts is adapted, so that the management of tax settlements and the payment of the debt are no longer paralyzed in cases of crime due to tax violations.
Although the employer is the main victim, the workers are the sufferers , in many cases innocent, who pay with their jobs the consequences of the tax inspections, since the fines imposed can in many cases even lead to the liquidation of the inspected companies.
Furthermore, providing information within the time limits required by the Tax Agency may mean that the administration departments may have to work numerous hours of overtime qatar email list to carry out daily work and collect the information requested by the Tax Agency.
The tax inspection is something that affects the entire company , investments are paralyzed, time is short, but it is a time of uncertainty. What will the sanction be? Will workers be laid off? Will a redundancy plan be carried out? Will the company survive?….
What information may the Tax Agency require?
Although the requirements to request information from the Treasury are:
That this is in the possession of the person inspected.
That it has tax significance.
That there is no obligation to have provided them through the corresponding declarations.
Notwithstanding these limitations, inspectors may request almost all information held by the person being inspected , if they consider it to be of tax significance.
Generally, photocopies of invoices supporting commercial transactions with a third party are requested , whose identification is notified in the request; as well as the means of payment/collection of said invoices with the provision of documentary justification and, where applicable, justification of the fact that the amount of said invoices does not coincide with that stated in the annual declaration of transactions with third parties (Form 347).
Banks are also required to provide information of tax relevance requested by the Tax Agency in the context of an inspection. The inspection or collection bodies may choose between requesting banking information from the affected taxpayers or requesting it directly from the banking entities with which they operate.
Consequences of the Law on the Reform of the General Tax Law in the field of tax inspections
The Council of Ministers approved last Friday, April 17, the submission to the Cortes of the Bill for the Reform of the LGT, where the powers of verification and investigation are extended , regulating the right to verify tax obligations in the case of prescribed years, whenever necessary in relation to obligations of non-prescribed years. A period of ten years is set for the verification of bases or quotas compensated or pending compensation or deductions applied or pending application.
Furthermore, the procedure for administratively settling tax debts is approved even when there are indications of a crime against the Public Treasury having been committed and the procedure for collecting such debts is adapted, so that the management of tax settlements and the payment of the debt are no longer paralyzed in cases of crime due to tax violations.