Tax inspection without announcement - does the Tax Office have the right to do so?

Service-Tax

Tax audit is one of those situations that you have to take into account when opening your own business. Nevertheless, entrepreneurs, even the reliable ones, are rarely associated with anything positive. Usually, however, such an event is preceded by an appropriate notification. However, are there any cases where a tax audit may be carried out unannounced? We dispel doubts!

Notification of tax inspection

The general rule stipulates that the inspection from the tax office is usually preceded by a notification no sooner than 7 days and no later than 30 days from the intention to commence activities. If these 30 days have expired and the inspection has not yet taken place, then a new notice of initiation must be applied. The inspection may take place within 7 days, but then it must be approved by the taxpayer. Nevertheless, such a time reserve is a security for the entrepreneur who can make sure that he has completed all the formalities. Nevertheless, there are cases where an inspection by the tax office may take place unannounced.

Tax audit without announcement - when can it be initiated?

As mentioned above, entrepreneurs are usually notified prior to the commencement of tax inspections. However, an unexpected tax audit also has many legal justifications. They are usually incidental cases - most often resulting from specific circumstances, but sometimes also from the nature of the industry in which the entrepreneur operates.

The possibility of initiating an unannounced inspection from the tax office results from the Tax Ordinance. Situations in which this may happen are included in Art. 282c. According to it, an unannounced tax audit may take place if:

  • it is carried out in order to prove the legitimacy of the refund of the deducted VAT,
  • preparatory proceedings for a crime or fiscal offense are to be initiated against the inspected entity, and the inspection is carried out at the request of the authority that conducts it,
  • it takes place in relation to activities not reported for taxation,
  • it relates to undisclosed sources of income or income that is not covered by actually disclosed income,
  • it was initiated in order to prevent committing a crime or a fiscal offense, or it is related to the preservation of evidence related to the commission of a crime - in such a situation, however, the person conducting the inspection should present an official ID,
  • if there is a suspicion that there may be financing of terrorism or money laundering,
  • if the control is aimed at ad hoc checking that the conditions for suspending economic activity are met,
  • if the control is aimed at ad hoc verification of the turnover records on the cash register, the use of the cash register, or the preparation of a physical inventory,
  • if the control concerns activities related to the extraction of certain minerals,
  • or if the tax office has grounds to claim that the controlled entity,
    • there is no address, and therefore the delivery of the inspection notice would be difficult or impossible (this applies to the address of residence or registered office of the company),
    • has been convicted in connection with committing a fiscal offense (this is about obstructing the conduct of inspections) or a fiscal offense or offenses against economic turnover,
    • is obliged in enforcement proceedings.

However, the above-mentioned situations are exceptional, and thus, they only take place in situations. Accordingly, the steps taken in these circumstances, ie the unannounced tax audit, should be justified within three days of its implementation.