A tax review for industries is a process that should be carried out regularly. It aims to assess various factors that can impact on the financial health of the business, as well as checking that the industry is not paying too much tax.

For this reason, Zanini Auditoria has prepared this article as a way of clarifying for industrial managers the need for regular tax reviews.

Why do tax audits in industry on a regular basis?

To begin with, it is necessary to clarify the concept of tax review and its implications. As such, it is a process carried out by companies specialized in the area with the aim of ensuring that the tax legislation in force in the country is being complied with.

From this, it is possible to identify difficulties in implementing tax planning and correct deviations in some internal processes. As a result, tax obligations are optimized in order to obtain the lowest tax payments.

The main advantages of carrying out a tax review in industries on a regular basis can be identified in the following points:

1st – Identifying possible risks with inadequate tax collection, which allows the company to preserve the financial health of the business;

2 – Checking for the existence of new tax credits to be recovered, as well as identifying the existence of tax benefits that have not yet been claimed;

3rd – Acting preventively, as there are controversial points in the legislation that require careful evaluation. In fact, it manages to avoid paying taxes unnecessarily.

4th – Improved business management performance, with assertive tax collection and management of tax-related expenses.

How can a tax review be carried out efficiently?

The tax review process in industries must be carried out following certain procedures, which are essential for the efficiency of the review. Here is a step-by-step guide to carrying out this process:

1st – Map internal processes

This mapping is linked to tax aspects and the organization’s workflow. In this sense, it is important to gather information on the production process, purchases, customers and sales.

This is because these aspects have a major influence on tax collection. For example, if the industry’s suppliers are from other states, the rate differential for the Tax on the Circulation of Goods and Services (ICMS) needs to be carefully assessed.

2nd – Develop a detailed analysis of the tax regime adopted by the industry

The aim is to check the calculation criteria and the benefits considered. It undoubtedly provides an assertive view of the suitability of the framework adopted by the company.

3rd – Carry out a thorough analysis of ancillary obligations and all tax documents

For this thorough analysis, the following documents must be reviewed:

The invoices issued;

The declarations submitted by Sped;

Intermediate documentation, such as Block K of Sped Fiscal.  

4th – Develop a tax accounting analysis

The aim is to assess the assertiveness of the industry’s bookkeeping, focusing on the books and reports. As well as the results of the accounting accounts.

5th – Re-evaluation of tax incentive programs

The aim is to identify new opportunities and assess the suitability of those that are already being used. For this reason, a tax review of industries generates advantages with greater attention paid to tax benefits.

6th – Integration with the industry’s tax planning

The aim is to provide the information needed to develop strategies. In addition, it is essential to adopt an action plan to implement process improvements and changes to the tax regime.

Therefore, it is easy to understand the need for a tax review in industry, as well as the need for it to be carried out by a company specializing in the subject. If you would like more information on the subject, please contact Zanini Auditoria.