Tax compliance review: definition
Created by decree n ° 2022-25 of January 9, 2022, the tax compliance examination (ECF) is a contractual service taking place at the request of a company from a service provider, professional in figures or in tax law. The latter undertakes in complete independence, to rule on compliance with tax rules according to specifications and an audit defined for a given financial year.
Why do an ECF?
The tax compliance review by a Trusted Tax Accountants in Tarneit allows companies to strengthen their legal and tax security and to operate more calmly. If the company takes into account the recommendations made by the auditor during the ECF, the Administration may not require the payment of penalties or late interest in the event of a tax audit on one of the audited points. and validated. Also note that in the event of an inspection, if one of the audited and validated points leads to a tax reminder, the company can request reimbursement of the corresponding fees paid.
But be careful, remember that the ECF does not exempt companies from their tax obligations! These remain compulsory.
Finally, a tax compliance review can also allow the company to increase its reliability with regard to its commercial relationships (customers, banks, suppliers, etc.).
Tax compliance review: for whom?
All companies, natural or legal persons, exercising a professional activity in individual form or in partnership, and this, whatever their turnover (turnover) or their tax regime, have access to the tax compliance examination. . The ECF is applicable for fiscal years ending on or after December 31, 2020.
Who can perform a tax compliance review?
The tax compliance review can be Carrie out by different service providers:
- Statutory auditor
- Chartered Accountant or Accountant
- Management and Accounting Association
- Approv management body (OGA)
Tax compliance review: terms and conditions
A contract is concluded between the company and the service provider in order to establish a pre-control in the form of an audit (or “audit trail”). This contract must in particular provide for:
The period covered by the tax compliance review;
The rights and obligations of the parties, and in particular the termination clause for non-performance of the contract;
The list of points constituting the audit path;
The provider’s remuneration.
At the end of this, a mission report retracing the work carrie out is drawn up. The latter can be transmitted to the General Directorate of Public Finances (DGFIP) and must be kept by the parties until the prescription of the right of recovery from the Tax Administration.
Good to know: When the existence of a tax compliance review has been mention in the income statement for the financial year concerned, the mission report is directly transmitted to the DGFIP by the service provider using the transfer procedure. tax and accounting data (TDFC).
What does a tax compliance review cover?
An ECF covers a fiscal year and 10 specific points, consider to be the most controlled tax points. To know :
- Compliance of the accounting entry file
- The accounting quality of the FEC file
- The chosen tax regime
- Certification of cash register software
- VAT (collect and deductible)
- The shock absorbers
- Expenses to pay
- Exceptional charges
- The method of keeping documents
“The Trusted Tax Accountants in Tarneit compliance review is a new opportunity for companies to secure their actions. However, this requires a study adapted to each situation. The tax lawyers and auditors of the NUMBERS PRO are at your disposal to assist you in this new approach. ”