The Ministry of Finance has issued Guideline No. 1063/2017 to regulate the conduct of tax audits and the issuance of tax assessment notices. Released on May 21, 2017, the new directive aims to enhance the effectiveness, efficiency, and transparency of the tax administration system.
The guideline outlines the roles and responsibilities of both tax authorities and taxpayers. It applies to various types of tax audits, including return audits, desk audits, thematic audits, comprehensive audits, and investigations related to tax fraud.
Designed to serve as a comprehensive framework for the implementation of the Federal Government’s Tax Proclamation, the guideline seeks to ensure that audit procedures are uniform, transparent, and respectful of taxpayers’ rights.
According to information obtained by Capital, a tax assessment notice is issued under three circumstances: when taxes remain unpaid, when additional taxes are confirmed, or when tax fraud is suspected. In such cases, the taxpayer must receive written notification at least ten working days prior to the commencement of a field audit.
During an audit, taxpayers are required to cooperate with auditors by providing suitable working conditions and submitting all requested documents.
However, the guideline has raised some concerns among stakeholders regarding potential burdens on taxpayers.