In the previous article within the series related to the control of taxpayers, we described for you the stages (course) of a tax audit. In this article, we will deal with the issue of the taxpayers’ rights, but also with the obligations they must meet during a tax audit.
Participation in audit activities
The most important and fundamental right of an entrepreneur who is subject to tax inspection is participation in tax inspection activities. It is worth mentioning that it happens that officials, while conducting an audit, submit a number of documents, among which a “statement on resignation from the right to participate in audit activities” may appear. It should be remembered that the controlled taxpayer is not obliged to sign such a document. What is more, if you cannot or do not want to participate in the inspection, it is better to appoint an attorney. The power of attorney in this case should be granted in writing, but may also be notified orally to the protocol.
Right to inspect files
Pursuant to Article 178 § 1 of the Tax Ordinance, a party has the right to inspect case files. Moreover, a party may make notes, copies and copies from case files using equipment. A taxpayer has this right also after the end of the proceedings. In practice, it happens that such actions take place in the tax office in the presence of an employee of the office. The taxpayer does not have to personally take and make notes from the case file, he may also request copies of the file, although this is more time-consuming and involves the necessity to pay fees to the office (different if the file is certified for compliance).
Participation in the taking of evidence
Pursuant to Article 190 of the Tax ordinance, a party should be notified of the place and date of taking evidence consisting in witness testimony, expert opinion or inspection at least 7 days in advance. Moreover, a party has the right to participate in the taking of evidence. Such participation may consist, among others, in asking questions to witnesses and experts, as well as submitting explanations. The meaning of this regulation comes down to the fact that the taxpayer not only assists in the performance, but acts in an active manner.
Objection to control activities
On the basis of the entrepreneurs’ law, a controlled taxpayer may also object to the undertaking and performance of actions by the control body in certain cases. An objection is lodged pursuant to Article 59 of the Entrepreneurs’ Law and must be made in writing within 3 working days from the date on which the inspection authority commenced the inspection or the premises for the objection arose. An objection shall result in the suspension of inspection activities by the inspection authority and the suspension of the duration of the inspection. Within 3 working days, the authority is obliged to consider the objection and issue a decision to abandon the inspection activities or to continue them.
The aforementioned rights are only the most important ones granted to taxpayers in the course of a tax audit. It is worth bearing in mind that the exercise of these rights may vary depending on the case that takes place, therefore, it is worth consulting a potential specialist in this matter.