Strategizing International Tax Best Practices – by Keith Brockman

Posts tagged ‘Finance’

Pre-Audit Best Practice strategies

Some examples of Best Practice strategies to strategize for audits, before they begin.

  • Audit defense file for significant transactions and potential risks
  • Transfer pricing documentation; contemporaneous, available within┬áthe audit request period, without significant penalties
  • Inter-company Agreements: signed, readily available; does substance of transactions match the form
  • ┬áTax reserves on statutory financials: review, know how to respond to auditor’s queries
  • Loan agreements, review for arms-length documentation, rationalize different loans with different interest rates
  • Audit notice/telephone call: is there a global communication process for prompt notification and pre-audit planning
  • Change of finance personnel, ensure a seamless transition for audit defense files and documentation
  • Identify the first point of contact for an audit “raid”
  • Who will meet with auditors regularly, company personnel/outside advisors
  • Company information, organization charts, etc.; identify what should and should not be provided
  • Information for other entities/years not under audit; be prepared to react to such queries quickly and consistently
  • Consistency of global methodologies, ensure there is a governance process as tax authorities do exchange information
  • Amnesty provisions; how are you made aware of them, process for review if applicable
  • Annual review of pre-audit Best Practice strategies for awareness and governance

Hope this is helpful, I look forward to your valuable ideas.

 

 

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