Tax Audit and Investigation in Poor Documentation Environment - Prof Oyedokun.pptx

FIRS Tax Audit and Investigation in Poor Documentation Environment - Prof Oyedokun

Being a Lecture Delivered at the FIRS Office, Ibadan 2022 Customised MCPD of the Federal Inland Revenue Service (FIRS) on Tuesday 25th and Thursday 27th of October, 2022.

1. Tax Audit and Investigation in Poor Documentation Environment Being a Lecture Delivered at the FIRS Office, Ibadan 2022 Customised MCPD of the Federal Inland Revenue Service (FIRS) on Tuesday 25th and Thursday 27th of October, 2022.

2. ND (Fin), HND (Acct.), BSc. (Acct. Ed), BSc (Fin.), BSc. (Bus. Admin), MBA (Acct. & Fin.), MSc. (Acct.), MSc. (Bus & Econs ), MSc (Tax), MTP (SA), PhD (Acct), PhD (Fin), PhD (FA), FCA, FCTI, FCIB, ACS, ACIS, MNIM, FCNA, FCFIP, FCE, FERP, CICA, CFA, CFE, CIPFA, CPFA, ACAMS, ABR, CertIFR , IPA, IFA, FFAR, FPD-CR, FSEAN, FNIOAM, ACIrb

3. Tax Audit and Investigation in Poor Documentation Environment

4. Introduction

5. Introduction

6. Tax, Audit and Tax Audit

7. Tax, Audit and Tax Audit

8. Tax, Audit and Tax Audit

9. Tax, Audit and Tax Audit

10. Tax, Audit and Tax Audit

11. Reasons for Tax Audit

12. Objectives of Tax Audit

13. Types of Tax Audit

14. Audit Evidence

15. Main Qualities of Audit Evidence

16. Types of Tax Audit

17. Stages of Tax Audit Process

18. Tax Audit Schemes

19. Condition for a Good Tax Audit

20. Tax Investigation

21. Types of Tax Investigation Civil Investigation is as a result of mild tax offences committed by a tax payer It is usually in forms of tax avoidance and evasion Reasons for Civil Investigation Aggressive tax planning Third party information (petition) or whistle blowers Violation of the tax laws Mergers and acquisitions Complex group structure with lot of intra-group-transactions Criminal Investigation are tax evasions such as suspicion of a tax fraud, willful default or neglect to pay tax Reasons for Criminal Investigation Refusal to file returns Refusal to pay assessed taxes Refusal to remit WHT and VAT deducted at source Refusal to allow access to records and books Refusal to honour tax office invitation or respond to tax queries Intelligence report of criminal activity of taxpayer bordering on tax default Petition against the company disclosing serious tax evasion Civil Tax Investigation Criminal Tax Investigation

22. Tax avoidance and Tax evasion

23. Tax Audit and Investigation

24. Difference between Tax Audit and Investigation Tax Audit Tax Investigation Legal obligation-Audit is mandatory under the law, it has legal binding to adhere to No legal obligation- Investigation is not compulsory under the law It is planned and prior information is sent to a taxpayer Does not require prior information on what is going to be investigated Cannot be carried out on previously audited financial statements, starts on where the last audit ended. Can override audit as to accomplish certain objective. Conducted by a chartered accountant, recognized and certified by the professional bodies Can be carried by both chartered and non-chartered accountant but with investigative skills acquired through training

25. Tax Audit Tax Investigation Examination of a taxpayer’s records, accounts and financial affairs to ascertain the taxpayer’s tax compliance Collect evidence which may satisfy three conditions affirmed here under:- a criminal violation; loss to Government revenue and intent to deny Government revenue Findings may lead to additional assessment; or extended to investigation Lead to prosecution; or audit or drop out Focus in areas of risk of non-compliance Focus on suspicion; information from informant or follow the money trail Limited time for the exercise It can be prolonged to gather all evidence Rely on evidence submitted by a taxpayer Evidence other than from a taxpayer (computer forensic, third party etc.)

26. Similarities between Tax Audit and Investigation

27. Conditions that may necessitates Tax audit and Investigations

28. Duties of Tax Audit and Investigation Department

29. Issues in Tax Audit and Investigation

30. Issues in Tax Audit and Investigation

31. Issues in Tax Audit and Investigation

32. Issues in Tax Audit and Investigation

33. Issues in Tax Audit and Investigation

34. Issues in Tax Audit and Investigation

35. Taxpayers’ obligations under Tax Audit and Investigation

36. Taxpayers rights under Tax Audit and Investigation

37. Role of Taxpayers under Tax Audit and Tax Investigation

38. Key elements of the legal framework on Tax Audit and Investigation

39. Characteristics of a Tax Auditor/Investigator

40. Useful Tax Audit Documents

41. Challenges in Tax Audit/Investigations Processes

42. Enforcement Sections in FIRS (Est.) Act 2007

43. Tax Audit and Investigation in Poor Documentation Environment

44. Tax Audit and Investigation in Poor Documentation Environment Strategies for carrying out tax audit and investigation in a Poor Documentation Environment

45. Reasons for Documentation

46. Poor Documentation

47. Consequences of Poor Documentation

48. How Taxpayers can Improve Documentation

49. The Role of Audit Managers in Poor Documentary Environment

50. Tax Audit/Investigation Approach in Poor Documentation Environment

51. Types of Indirect Methods used by Tax Auditors/Investigators

52. Conclusion

53. Conclusion

54. Recommendations

55. Recommendations