Efforts to modernize and digitize the tax administration will play an important role in strengthening controls by 2024. By using advanced technological tools and sophisticated algorithms, tax services today able to cross-reference and analyze large volumes of data in record time. These improvements allow them to more quickly detect anomalies and contradictions in tax returns of taxpayers.
This increased detection capacity is strengthened by the use of artificial intelligence and data mining, which helps identify potential fraud patterns and areas of non-compliance with unprecedented accuracy. Consequently, the taxpayers should be especially careful etc ensure that their declarations are accurate and complete to avoid errors that attract the attention of tax inspectors.
The criteria for triggering tax audits
The risk The tax audit in 2024 is also increased due to the specific criteria used by the tax administration to select the taxpayers to be auditedr. Several criteria must be considered. First of all, declarations that show inconsistencies or anomalies compared to previous years or to data that can be obtained from other sources, such as bank statements or information from other administrations, are especially analyzed.
Then, taxpayers reporting high income or windfall gains can also be targeted. Likewise, those who benefit from favorable tax regimes or significant tax credits should expect a thorough audit. Finally, money transfers abroad and international commercial activities are sensitive areas for the tax administration, especially when there is suspicion of fraud or tax evasion.
Consequences of a tax audit and possible appeals
The consequences of a tax audit can be severe, including financial and criminal penalties if violations are proven. Financial penalties vary depending on the seriousness of the violations:
– 40% increase if there is deliberate omission of declarations.
– 80% increase in the event of fraud or abuse of rights.
– Default interest up to 0.2% every month in arrears of the amounts owed.
If there is disagreement with the conclusions of the tax audit, the taxpayer can initiate an appeal. This appeal begins to make written observations of the administration, which must respond to them. If the disagreement persists, the taxpayer may refer the matter to the competent commission of the department, then, as a last resort, initiate litigation proceedings.
To minimize the risk of a tax audit in 2024, it is important for taxpayers to:
– Ensure the accuracy and completeness of their tax declarations.
– Maintain accurate and orderly documentation of all financial transactions.
– Consult a tax advisor to avoid mistakes and optimize declarations to comply with tax laws.
Anticipating and following tax rules remain the best strategies to avoid potential complications during a tax audit. Through good knowledge and preparation, every taxpayer can sail calmly in the face of this intensification of audits in 2024.