The individual taxpayer to report income by charging and inserting the Annual Tax Personal Tax Payer. The reported income usually consists of income from business is the income derived from business activities such as trading or producing goods or certain products. Free income from work is the income derived from activities in certain professions such as doctors, lawyers, notaries, consultants, and so on.
Examiner will check and test figures in the financial statements and bookkeeping if any income from business, and perform audit procedures as prescribed by the standard tax audit guidelines.
Facing the Tax Inspection Tips
1. Do not Minimizing Tax Problems.
Underestimate the feeling something will make you become complacent and careless. It will complicate and harm you
2. Do not do or intend to cheat.
Skulduggery will decrease your credibility in the eyes of the tax authorities (tax authorities). The fall in the credibility to make the tax authorities will always be suspicious of all aspects of the tax that you will be working. Of course this will bother you in the future. If you can not afford to pay the taxes, you better come to the tax authorities and asked for a way out. Maybe you’ll get a reduction in mortgage payments, even though the tax remission. Your honesty will be rewarded once by the tax authorities.
3. Do your homework every day.
Often we delay work such as recording or bookkeeping transactions. The actual work can you complete one hour a day may take a week if it was done at the end of the month. Not to mention the needed accuracy of your memory to replay the transaction during the first month.
4. Save and document the evidence properly.
5. Proof of the transaction in the form of a receipt, bill of purchase, Tax Invoice, receipt of withholding, and so should you keep it in a place that is easy to find. Do not let the evidence attached to the Journal Voucher you. So make copies and keep the originals in a safe place. You need to remember, at the time of examination, speech and arguments may not be heard by the tax authorities if it is not accompanied by evidence.
6. Keep the cash transactions.
Transactions through the banking system will help alleviate your bookkeeping work. We just ask for bank statements at any time. The tax authorities tend to trust the evidence issued by banks at the time of your check.
7. Update the one your tax knowledge.
Do not be lazy deepen your tax knowledge. Nowadays you can easily collect the tax rule book, follow the tax rules, training taxes or tax seminars. Your knowledge of taxes will help you during questioning. Just like you. The tax authorities sometimes forget about the tax treatment of a transaction. By doing so you will be spared from corrections unnecessary. During this time many companies assume that the tax affairs is a matter of accounting. This assumption is wrong. Commonness other parts such as the legal department, human resources, procurement of the tax will make the swelling cost of your taxes. Precisely the financial part is the filter end of a transaction.
8. Ask the experts.
The safer you have a consultant or friend who can be invited to discuss and consult about the problem you are facing. You can also ask for help from the rest of Counseling Tax Office in your city. They will be happy to help provide a way out. If not satisfied, you can still write a letter of inquiry to the Directorate General of Tax Counseling Center.
9. Make a calendar tax.
Tax calendar function to remind you of important dates in the cycle of tax administration. This will prevent you from forgetting to pay taxes or forget to report taxes. Again not a problem fines is not much, but the more mistakes you do, your credibility will fall in the eyes of the tax authorities.
10. Check once again.
Your thoroughness in your administrative work can minimize your chances in check by the tax authorities. Therefore, a time to re-check anything you’ve done.
11. The best consultant you are on your own.
A consultant is not necessarily good at doing its own tax, but the tax you unless of course if the consultant doubles your husband or wife. It could be that you do need a consultant, but you should not depend exhausted them. Imagine if at the same time the entire team of consultants ill and had to be replaced by another team you do not know.
The things you should look at when doing your tax administration are:
1. Maintain consistency of tax treatment
You from year to year. The inconsistency of the use of the depreciation method for example will allow tax authorities conduct fiscal correction on your tax return.
2. Records of income and expense that should be heading.
Do not make the heading “Income / Expense Other” into the trash your bookkeeping. This tends to stimulate the tax authorities to correct the post.
3. For WP Agency, separate the costs are for personal use. The separation would prevent the tax authorities to make corrections unnecessary.
4. Make navigation or reference so you can easily find the supporting documents or remembering the history of the relevant transaction. Your doubts when facing checks would invite suspicion of tax authorities.
5. Report your total income and expense, either earned from work / business, from the lease, gift, hobbies and so forth.
6. When filling Annual Tax do not jump in the first type, so if no fault can be immediately rectified. We recommend you set up tax forms that need to guard. This form can you ask at your local tax office or make your own.
7. Recheck addition, subtraction and multiplication in your tax return. Remember that your tax return is the first gate of tax audits. If the tax authorities have found a flaw in your door, chances are they will come and knock.
8. Before you send to the tax office, check the completeness of the Annual Tax Return you once again. Whether you’ve attached the Tax Payment, Commercial Fiscal Reconciliation, Depreciation calculations, Statement, whether the pieces of the Annual Tax Return you have already signed.
9. If all you’re doing, you can take your tax return directly to the local tax office. If you do not have the free time, send it by registered post. Do not forget to save your tax return delivery receipt in a safe place.