What is the Meaning of: Tax audit | Concept and Definition of: Tax audit
An audit is an inspection, review and control activity aimed to monitor compliance with certain standards. When a person or a corporation are subject to an audit, the auditor is responsible to collect data and analyze the process for submitting a report (report) indicating whether the person or the company in question is in order and within the limits of the law.
The adjective tax (e), in relation to him, refers to what belongs or which is relative to the tax authorities (public Treasury or the set of public bodies whose function is to collect taxes and fees).
These two definitions allow us to assert that a tax audit is an inspection of the tax situation of a person or a company to check if they meet their obligations.
The tax audit is therefore a process which consists of obtaining and assessment of the evidence on the facts relating to acts of dependent on nature. The listener must compare statements and tax payments with the Finance of the entity being audited to determine if everything is in order.
The State, through various offices and departments, often develop tax audits to ensure that taxpayers meet their obligations. In the event of irregularity, the debtor will have to rectify the situation and, where appropriate, can be punished in various ways since tax evasion is considered a crime.
Large companies often organize internal tax audits to ensure that the payment of fees is made in any normality.