Customs and fiscal control and tax control - comparison

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People running a business should be prepared for the possibility of carrying out various types of control proceedings in the company. Depending on the type of business, hiring employees, being subject to sanepid regulations, etc., there may be many possible inspections and control units. In today's article, we will discuss what tax and customs-fiscal control are - what are the differences between the two procedures and what are their common features?

Commencement of the control procedure

Pursuant to the current legal regulations, a taxpayer may be subject to two types of inspection proceedings:

  • tax audit,

  • customs and tax control.

Tax control is initiated by the head of the relevant tax office under which the taxpayer is subject, and the customs and tax control is initiated by the head of any customs and tax office.

As a rule, the taxpayer should receive a notification of the intention to initiate a tax audit. There are, of course, exceptions, and sometimes it is carried out without prior notice. The tax authority is then obliged to provide the taxpayer with a letter about the reason for the failure to notify about the intention to initiate control proceedings.

Customs and fiscal control may be carried out without prior notification, and control activities may commence immediately after the entrepreneur is given the authorization to conduct the control. Moreover, if there is a justified suspicion of non-compliance with the taxpayer, official ID cards of employees and officers employed or serving in the National Revenue Administration will be sufficient to initiate a customs and fiscal control.

Duration of the control

Both in the case of a tax audit and a customs and fiscal audit, the persons performing the audit activities should complete the proceedings without undue delay. A tax audit may last a maximum of one month from the date of initiation of the audit, and if the procedure is difficult to carry out, it may be extended to 2 months. Customs and fiscal control should be completed within 3 months, this period may also be extended, if necessary.

Tax control and customs and fiscal control in the company

Tax control is carried out on the basis of the provisions of the Tax Ordinance, and the customs and tax control is carried out on the basis of the Act on KAS.

Basically, the overriding goal of the audit procedure is to check whether the entrepreneurs apply the regulations, keep their accounts properly, have all documents and complete all formalities related to the settlement of the activity in a timely manner, as well as detect possible irregularities, crimes and punish unfair taxpayers.

With regard to tax audits, the purpose of officials is primarily to verify the correctness of settlements and the application of applicable regulations in practice, timely submission of declarations, payment of taxes, etc. VAT carousels, organized tax and customs crime and extremely difficult issues.

Customs and fiscal control has a much wider scope compared to tax control, and can be carried out on many levels.

Customs and fiscal control concerns, among others:

  • compliance with tax law,

  • customs law,

  • foreign exchange law,

  • postal items,

  • export refunds,

  • export and import of goods subject to restrictions and prohibitions on the territory of Poland.

What powers do officials have?

The authority conducting the customs and fiscal control has the right, inter alia, to down:

  • request the presentation of documents, including all financial documents, and make all data available;

  • checking documents from other accounting periods than the one currently inspected;

  • applying to contractors of the controlled entity for access to documents related to the delivery of goods;

  • making an inspection;

  • search of residential premises in order to find possible evidence related to the ongoing control proceedings (after obtaining the consent of the competent district prosecutor);

  • identification of persons in order to establish their identity, if it is necessary for the purposes of control;

  • summoning and questioning a controlled person, employees, witnesses.

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Place of performing control activities

Tax inspection activities are carried out at the inspected party's headquarters, in another place where documentation is stored and in places related to the conducted activity (e.g. shops, service points, warehouses, production halls, etc.).

With regard to the customs and fiscal control, all activities related to the control procedure may be performed at the customs and tax office, at the premises of the controlled, at the place where tax books are kept or stored, and in any other place related to the activities conducted by the controlled entity, including residential premises. or in places where devices, goods or documents related to these devices, goods or activities subject to control may be located, and even in other offices that support KAS authorities.

Completion of the control procedure

Completion of the tax inspection is associated with the issuance of a protocol, while after the completion of the customs and fiscal proceedings, the taxpayer receives the result of the inspection (in the case of an inspection concerning, inter alia, fuels, gambling, export refunds, the customs and fiscal inspection ends with a protocol). Both documents are very similar to each other.

After the delivery of the report containing the reservations detected in the course of the tax audit, the entrepreneur who considers these reservations justified, may submit a corrective declaration. Otherwise, he has the right to appeal against the tax decision.

After the completion of the customs and tax inspection, if any irregularities are detected and the taxpayer agrees with its findings, a corrective declaration must be submitted (within 14 days from the date of receipt of the inspection result). Failure to submit a correction by the taxpayer results in the automatic initiation of tax proceedings, it is not possible to submit objections to the result of the inspection.