Audits of the tax authorities in Israel at your business are routine. Sometimes they will be conducted unexpectedly without any prior notice, but most often will be coordinated. The incident may be very stressful and worrying and nobody wants to get involved with the Israeli tax authorities, but it is very important to remember that we are not accused of anything. Keeping calmness and using the right professionals will ensure that we go through the unpleasant scenario more easily.
What authorities in Israel might invite us for an audit?
- Income Tax
- Social Security
What might be the subject of such an audit?
There are several types of audits done by the tax authorities:
- Book Management Audit – The Israeli income tax administration will examine how business books are managed, whether all invoices and receipts are found to be correct, and so on.
- Audit by the VAT Authority in cases where the demand for VAT refunds in previous years was particularly high. The audit will check out the things offset by VAT do exist and are in the business.
- The Israeli income tax administration may audit the business following a third-party report that raised suspicions that the business was malfunctioning.
- Sometimes, the audit will be completely random and will be a routine sample audit.
It is important to know that the tax authorities currently have a zero tolerance policy in place for tax offenders. In order to eradicate the phenomenon of income tax evasion, the authority decided that this phenomenon would be dealt severely. Therefore, it is important to know that proper bookkeeping is of paramount importance to the representatives of the authorities.
Representation by an accounting firm may facilitate the business conduct
There is no legal obligation to get represented by tax auditing professionals. However, such a service can have several significant benefits:
- Provide peace of mind and reassurance knowing that we are in good hands and accompanied by professionals.
- Provide preparation for what is to come.
- Give you the right tools to handle the audit and if there are failures, deal with them ahead of time.
In fact, hiring a professional accountant is valuable even before the audit stage and will allow us to be much more relaxed. When we know for certain that the bookkeeping and payment flow management of the business is conducted in the most proper manner with the tax authorities under the supervision of an expert, audit is something that is approached with joy and pride.
CPA Guy Dovrat will prepare you for favorable audit with the tax authorities
Accountant Guy’s many years of experience in accounting in the business sector and in the knowledge of the ongoing conduct of the tax authorities at the systemic level, allows him to provide you with comprehensive accounting preparation for any audit that the tax authorities may bring to you without feeling any unusual concern. Our office located in Yehud puts the business conduct and professional service above all values. We invite you to contact us as soon as possible and see with your own eyes how we change the accounting business conduct of your business from end to end.