An internal tax review and a tax audit by the Latvian State Revenue Service
An internal tax review and an official tax audit are different procedures. A company arranges an internal review to identify risks and errors early. A tax audit by the Latvian State Revenue Service is an official examination conducted by the tax authority under the applicable procedure.
An internal review usually covers
- Reconciliation of returns with accounting records
- Transaction documents and the applied tax treatment
- Material or unusual transactions
- Correction of previously identified errors
- Processes that may create recurring risk
If a notice is received
First identify the type of examination, the period concerned, the requested information and the response deadline. Documents should not be changed or supplemented without a clear basis. The company may provide explanations and engage a professional adviser where appropriate.
Well-organised records and regular internal review help the company answer questions and support decisions made in its accounting.