720 mef Tax Audit 20190313
On 13 March 2019, the Ministry of Economy and Finance (“MEF”) issued Prakas 270 on Tax Audits (“Prakas 270”), which attempts to streamline the tax audit process, as part of the government’s large-scale economic reforms, to improve transparency in tax payments and collections, and promote a fair and competitive business environment.
The three types of tax audits (desk, limited, and comprehensive) defined in the Law on Taxation (“LOT”) and Prakas 1059 on Tax on Profit remain unchanged. However, more robust criteria on how each type of tax audit is carried out have been set out in the Prakas on Tax Audit, as follows:
