Tax audit closed without reassessment

The situation

The director of a professional practice company was made the subject of an in-depth tax audit. That administrative procedure, governed by the rules particular to the professions, was intended to test the compliance of the management of the company and the observance of its filing obligations. The audit called for a complete examination of the supporting documents, of the bookkeeping and of the financial flows.

The difficulty

The intervention of the tax authority carried direct risks for the governance of the company and for the personal liability of its director. Beyond the financial consequences, a tax reassessment could have lastingly damaged the standing of a practice devoted to legal advice, where compliance is a condition of credibility. Containing the tax risk therefore called for assistance able to anticipate the inspectors’ observations and to defend the coherence of the management choices that had been made.

Our involvement

We represented the director, acting as the single point of contact so as to keep the exchanges under control. The approach consisted in organising all the accounting evidence methodically in order to establish the regularity of the entries, while answering the requests for clarification of the authority point by point. At the close of the audit, the authority found that no reassessment was due.