Data Verification Procedures and Limited Audits Explained

Posted on Feb 7, 2025 in Law

1 – Data Verification Procedure

Assumptions:

  • a) The declaration or formal defects or reverse arithmetic.
  • b) When the data reported do not coincide with others.
  • c) To appreciate CNDO misapplied the law, as reflected in the declaration itself, self-assessment, or supporting documents.
  • d) When required, some clarification or justification of data.

Initiation

  • Shape a communication indicating: the initiation, the tax, and the affected period for the verification, the deadline to respond to the request, and make allegations, if possible: a proposal for settlement.

Effects

  • Interruption of the prescription.
  • Subsequent earnings are not spontaneous.
  • Subsequent queries are not binding.
  • Ending the recovery proceedings initiated by self-assessment, data communication, or request.

Processing

  • Request for documents or evidence.
  • Provisional settlement proposal with reasoned arguments period.
  • Taxpayer’s request for the contrasting data supplied by third parties.

Termination

  • By indicating that resolution is not appropriate for provisional liquidation.
  • Provisional liquidation motivated by rectification, clarification, or justification for the discrepant data on the initiation of a limited verification or inspection.

Limited Verification Procedure

Object

Check: facts, events, items, activities, holdings, and other circumstances. Legal classification of hexose, acts, or business; the limited scope of the audit is incomplete: there is no provision for the expansion of their subject.

Powers

  • Review of the reported data and supporting materials.
  • Review of data reported and justifications.
  • Review of data and evidence held by the administration.
  • Review of records and tax documents, invoices, receipts, and any book, record, or official document (except the commercial accounting).
  • Require third parties to contribute information or supplemented by evidence.

Limits on the Powers

  • No one can examine the commercial accounting, nor can request information from third parties on financial movements.
  • The performance must be at the offices of the administration, except checks census or objective methods of taxation.

Stages of Procedure

Home

Form: Communication by showing:

  • The initiation of proceedings and tax period affected by the verification.
  • The deadline to respond to the request and make allegations, if applicable: a proposal for liquidation.

Effects Home

  • No interruptions of the prescription.
  • Subsequent earnings are not spontaneous.
  • Subsequent queries are not binding.
  • If necessary, terminating the proceedings initiated by self-assessment, data communication, or application for verification.

Processing

The performances are documented in communications or proceedings.

There is a duty of collaboration from the taxpayer. You can appear through a representative. It must communicate the proposed settlement with opening arguments within.

Termination

For resolution expresses the administration, without liquidation or settlement:

  • Purpose of the temporary scope checking.
  • Specification of the action taken.
  • Motivation: facts and law.
  • Settlement provisional.

Expires in six months without express resolution.

For the initiation of a surveyor.