During an inspection undisclosed sources of income taxpayers must comply with special surveys • You have to give them such specific expenses that were incurred for consumption and durable goods • According to experts, a survey prepared by the treasury are unfair, and their compliance with the law - questionable

Recently stepped up tax audits undisclosed sources of income. Virtually every day we get phone calls from readers with questions, how they should behave during these inspections. Questions relate primarily to a special questionnaire developed by the tax authorities, which officials make us fill taxpayers.

This survey was called the information on expenditure and sources of income for a specific year. This document does not dziwiłby anyone, if not for the fact that a large part is devoted to the position of consumer spending and nabytkom property taxpayer. You have to give it such expenditure on telephone, gas, cleaning, clothing, furniture, carpets, for treatment, travel services, purchase of works of art, articles of gold and silver, etc. Given the fact that such checks usually relate to remote events in time, it is difficult to expect the taxpayers to remember how much spent the year at the dish soap and clothing. Even more difficult for any bills confirming the expenditure incurred.

- The office leads me to check on the undisclosed income. According to the office I did not have sufficient resources, it has shown in the annual statements to the cash to buy an apartment. However, I have confirmation from the banks that had sufficient savings to buy a flat. Does having such evidence I have to fill the office of the questionnaire - ask us one of the readers. The answer to that question is - do not. With evidence of sufficient funds, for example, buy an apartment, do not need to fill in questionnaires. Such sentences are the experts.

The taxpayer in a blind alley

Completion of detailed surveys by the taxpayers certainly make it easier for Treasury. However it is not justified. This was the opinion expressed by Dr. Thomas Smith, an expert from the department of tax law firm Grynhoff, Usher & Partners.

- If the Authority considers that the taxpayer does not disclose revenues, it should provide evidence to support that. In the case of proceedings for undisclosed income, they are evidence of the expenditure which the taxpayer has suffered, such as buying a house, car. The burden of proof here lies with the tax authority - arguing, Dr. Thomas Smith.

According to him, tax authorities may ask the taxpayer to explain the sources of funding for his expenses, but only those for which the benefit of the taxpayer presented evidence.

- If the taxpayer establishes, inter alia, that he had savings from previous years, the proceedings should be terminated. In this situation, the office should not require the taxpayer completing a special questionnaire, in which the taxpayer would indicate other expenses, suffered during the period - says our correspondent.

At the same time added that calling the taxpayer to carry out these surveys is unfair. Cases of undisclosed income can apply to matters distant in time. Taxpayers generally do not remember what kind of expenditure incurred on food and lodging cost of equipment. Rarely, who holds evidence of such expenditure. The taxpayer therefore has no possibility of filling such a fair poll.

The authority must rebut the evidence ...

Control of the undisclosed source of income is a complex character - the authority on the amount of income on the basis of all the external signs.

This is - as explained by Catherine Bieńkowska, tax consultant with the Office of White & Case - including meticulous verification of expenditure, income and savings, as indicated in the polls by comparing the amount of expenditure from the revenue earned (taxable and exempt) and analysis of accumulated financial resources. If it is determined that the expenditure exceeds revenue sources and cost savings previously collected, the authority may assume that the difference is the income derived from sources of undisclosed or nieznajdujący coverage.

- The problem is not the scope of the requested information, but to ensure the protection of data (the authorities are empowered to control the disclosure of data from, for example if it is in the public interest), and actually complete shifting the burden of proof on the taxpayer. If the party shows, or even probable source of revenue, such as savings, which were covered expenses, the tax authority should be under a duty to overthrow such proof. Meanwhile, the practice shows that authorities seek to identify the highest amount of commitment and active participation in the control of the taxpayer only undermines his arguments at later stages of the proceedings - emphasized Catherine Mrs.

In her view, disclosure of the claims makes controlling just fix bugs, but did not change their intentions. What is worse, until a decision by the office, the taxpayer does not know the reasons underlying the decision. Therefore, only the appeal will be able to effectively challenge the findings.

... It also has the right to request data

In proceedings in respect of undisclosed income tax authorities are required by tax payers of two types of statements: declarations of assets and property declarations.

Thomas Hatylak, tax adviser at the Office of Legal Affairs GLN, explained that the declaration is a form of explanation the taxpayer, while the property is a statement made under penalty for perjury, which means that the taxable property in the declaration may provide information in a broad, while the statement of financial interests must contain accurate data.

- Information on the taxpayer's personal expenses (consumption) have an impact on the amount of tax on the profits of undisclosed. Taxpayers should have all the data you are able to demonstrate or validate - advised Thomas Hatylak.

He emphasized that it should be remembered that the tax authorities can verify the accuracy of the information and by controlling the income of those identified as donors or family members of the taxpayer.

Withholding of income tax fraud is illegal and if taxpayers do not have any taxable income, should be punished. This question can not be. However, the tax authorities would believe the taxpayer and to treat him in control - even if that control is in the undisclosed sources of income - as an equal partner. Should require, but also to give confidence of proof by the taxpayer, rather than forcing him to carry out special surveys. One can not assume that every taxpayer is a crook.

Postulated

The tax authorities, which for years trying to improve relations with taxpayers, should be at the controls of the undisclosed income sources to ask for evidence of income obtained, rather than prescribe specific taxpayers filling in questionnaires.

Comments are closed.