Tax inspections of individual taxpayers (2)

CABINET AVOCAT X has the business object “Legal activities”, code CAEN 6910. The period audited was:

  • 01.01.2016 – 31.12.2021 for self-employment tax.
  • 01.01.2017 – 31.12.2021 for VAT.

Main observations  of the tax inspection authorities : during the analyzed period, the taxpayer audited:

  • Deducted VAT entered in invoices for the purchase of goods and services (building materials, electrical installations, PVC joinery), as he did not own any immovable property registered in the inventory register, for which no supporting documents were submitted to prove their use for the purpose of taxable transactions.
  • In December 2017, the audited taxpayer did not collect value added tax for the totality of taxable transactions (provision of services) recorded in the journal-book of receipts and payments and erroneously reported in the submitted tax returns the total amount of gross receipts entered in the supporting documents and taken over in the journal-book of receipts and payments.
  • It incorrectly reported in the tax returns submitted the total amount of the expenses entered in the supporting documents and entered in the journal-book of receipts and considered as tax deductible expenses which did not meet the legal conditions for being deductible in the calculation of the annual net taxable income.

Source: ANAF