What are the criteria to be selected for a Tax Audit?
Well, the selection process could involve any or all of the following:
- HQ instruction
- policy decisions
- computerized selection
- manual selection’
- informer based selection
Besides the above reasons, other factors that can trigger it include the following:
- industry analysis
- informer or information based
- taxpayer record and background
- specific issues (e.g. transfer pricing)
- inconsistent and conflicting expenditure in accounts
- repayment and loss cases
- media reports
- inter-governmental agencies/information