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Litigation Management
How to Succeed in a Tax Audit
When dealing with a powerful tax authority, a successful tax audit requires the taxpayer to prepare in advance.
- If not properly prepared for, a tax audit can be a source of anxiety and may lead to financial disaster for the company and its executive.
- The FareWell team ensures that you are prepared in advance and assists you during the audit process by maintaining constant communication with the auditor regarding technical and factual matters.
- We draw on our experience to effectively defend your interests and prevent a breakdown in relations with the tax authorities.
- In court, we draw on all our legal expertise and tenacity to defend your interests.
Our Solutions
Tax Dispute Resolution
Our goal is to protect our clients, manage their affairs, and ensure they receive fair treatment in disputes with the tax authorities.
Frequently Asked Questions
FAQ on Tax Litigation Management
In the event of a tax audit of a company, how should the executive respond?
In the course of their professional career, it is highly likely that a business leader will face a tax audit at least once. In most cases, they have little or no knowledge of their rights regarding tax audits, particularly in the event of a tax search.
Furthermore, the executive is not made aware of the risk involved and does not know how to respond when the auditors arrive.
However, inappropriate behavior resulting from stress, panic, fear, or a lack of legal knowledge can have detrimental consequences for the audit, and it will then be difficult to reverse the situation.
We're here to help you prepare for these types of situations and navigate tax audits with greater peace of mind.
Furthermore, the executive is not made aware of the risk involved and does not know how to respond when the auditors arrive.
However, inappropriate behavior resulting from stress, panic, fear, or a lack of legal knowledge can have detrimental consequences for the audit, and it will then be difficult to reverse the situation.
We're here to help you prepare for these types of situations and navigate tax audits with greater peace of mind.
What are the main deadlines for filing with the tax authority?
The tax authority has a certain period of time to correct omissions, deficiencies, inaccuracies, or errors in tax assessments (“correction period”), regardless of whether these errors were committed by the taxpayer or the tax authority itself.
In principle, the carryover period is 6 years, but generally speaking, this period most often expires on December 31 of the third year for which the tax is due; for example:
Taxes due on 2021 income (for tax returns filed in the spring of 2022) will become time-barred on December 31, 2024.
The corporate income tax due for the fiscal year ending December 31, 2021, will become time-barred on December 31, 2024.
These time limits may be extended if no declaration has been filed or if the declaration is incomplete. For example, if a foreign account is not declared, the statute of limitations is 10 years!
With regard to local taxes, the statute of limitations is shorter and expires on December 31 of the second year for which the tax is due.
In principle, the carryover period is 6 years, but generally speaking, this period most often expires on December 31 of the third year for which the tax is due; for example:
Taxes due on 2021 income (for tax returns filed in the spring of 2022) will become time-barred on December 31, 2024.
The corporate income tax due for the fiscal year ending December 31, 2021, will become time-barred on December 31, 2024.
These time limits may be extended if no declaration has been filed or if the declaration is incomplete. For example, if a foreign account is not declared, the statute of limitations is 10 years!
With regard to local taxes, the statute of limitations is shorter and expires on December 31 of the second year for which the tax is due.
Can a tax law that violates the Constitution be struck down?
The Priority Constitutionality Question (QPC) allows an individual to ask the Constitutional Council to determine whether a legislative provision that has already been enacted is unconstitutional.
Indeed, while paying taxes is a civic duty, the assessment of taxes is also governed by constitutionally enshrined principles, namely the principle of equality before the tax system, freedom of enterprise, and the right to property.
Our job is to determine whether the application of tax legislation would result in a violation of our clients’ fundamental rights.
We have already identified several questions to raise, particularly regarding the office tax in the Île-de-France region.
Indeed, while paying taxes is a civic duty, the assessment of taxes is also governed by constitutionally enshrined principles, namely the principle of equality before the tax system, freedom of enterprise, and the right to property.
Our job is to determine whether the application of tax legislation would result in a violation of our clients’ fundamental rights.
We have already identified several questions to raise, particularly regarding the office tax in the Île-de-France region.
Do you have another question?
Do you have a question that isn’t answered here? Contact us!
We will respond as soon as possible.
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