5 common tax mistakes that put companies in the sights of the Tax Authorities

2023-05-06 14:00:05

Technological advances and the crossing of data in real time have made tax inspection increasingly rigorous, with tax authorities looking for errors and inconsistencies in the accounting and tax information of companies.

Compliance with tax regulations is essential to ensure solid and secure growth. In this context, we highlight the five most common errors that attract the attention of the Tax Authorities:

1 – Omission of recipes: the omission of revenues occurs when a company does not issue tax documents or does not properly record its revenues, reducing the tax calculation base and the amount to be collected. The legislation provides for several hypotheses of presumption of revenue omission, including a cash credit balance, lack of recording of payments made or maintenance of liabilities already paid.

2 – Incompatible financial transactions: the government monitors financial transactions and sales data through credit and debit cards. The Central Bank’s supercomputer, known as “Hal”, tracks and monitors the banking transactions of all financial institutions in the country. The Tax Authorities can cross-check the revenues declared by the companies with the amounts credited to bank accounts or received via credit/debit card, verifying that the funds have a proven origin.

3 – Inconsistencies in the Inventory Record: inventory inconsistencies can generate high penalties and affect the financial health of the company. The inspection is able to carry out a quantitative and financial survey of the goods handled by the company in the period, based on the information declared in the EFD ICMS/IPI files and in the electronic invoices. Problems related to the flow of incoming and outgoing goods, such as input omissions, output omissions, items with a negative balance or discrepancies between declared balances and calculated balances, are easily detectable.

4 – Errors in calculating taxes: The process of correctly calculating and collecting all taxes, fees and contributions due is complex, due to the national tax system full of details and specific rules. Common mistakes include not taking advantage of tax credits or taking advantage of them improperly, applying wrong rates and calculation bases or using outdated tax classifications and legislation.

5 – Inconsistent accessory statements: electronic inspection is carried out based on what companies declare through the Public Digital Bookkeeping System (SPED), which shares information at the federal, state and municipal levels. Any mistake made by a company, whether intentional or not, poses the risk of prosecution by the tax authorities. Taking care of ancillary obligations is essential.

Many companies face financial difficulties and opt for measures such as tax evasion, postponement of tax obligations or carrying out risky tax planning. However, these measures are not effective in the face of the technological arsenal assembled by the government for inspection. In view of this scenario, it is essential that companies are managed in a professional manner, using digital and technological auditing tools to ensure compliance with tax and legal requirements . The adoption of these tools is not just a necessity, but a strategic decision. Companies that do not adapt to this reality can compromise their business, since the tax burden in the country is high and directly impacts the budget of organizations.

Tax failures generate significant financial impacts and may jeopardize the continuity of the business. Therefore, it is important for companies to invest in training their tax departments, as well as in implementing efficient tools and systems to avoid errors and ensure tax compliance. In this way, companies will be better prepared to face the growing inspection and guarantee a solid and safe growth in the market.