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In which cases can the period and types of taxes covered by a mobile tax inspection be extended?
In which cases can the period and types of taxes covered by a mobile tax inspection be extended?
A mobile tax inspection, according to the Tax Code, is a procedure carried out by tax authorities to check the taxpayer’s business activities, accounting records, and other tax-related operations on-site. The main purpose of the inspection is to check the correct fulfillment of tax obligations by taxpayers and, if any violations of tax legislation are found, to take measures to eliminate them.
In which cases can the period covered by a mobile tax inspection be extended? Tax expert Zirəddin Məmmədov clarifies the issue:
According to Article 36.3 of the Tax Code, unless otherwise provided, the mobile tax inspection can cover the last three calendar years of the taxpayer's activities for profit, income, property, and land taxes; for other taxes, the inspection can cover no more than the last three years, including the year of the inspection.
The period of a mobile tax inspection or the types of taxes being inspected can be extended in certain cases. These cases are specified in Article 36.3-1 of the Tax Code:
1.At the request of the taxpayer: If the taxpayer requests an extension of the inspection period, this is possible.
Example 1: "AA" LLC is being inspected for 2023-2024. The company clarifies that some data for 2022 were not discovered during previous inspections. The company requests that the 2022 period be included in the inspection. The tax authority accepts this request and extends the inspection period to include 2022.
2. In case of reliable information on tax evasion after the inspection period: If there is reliable information about tax evasion after the inspection period, the inspection period and/or tax types can be extended.
Example 2: "BB" JSC is being inspected for 2022-2023. During the inspection, the tax authority finds that the company has intentionally reduced turnover in 2024 by not submitting electronic invoices. Based on this new information, the inspection period can be extended to include 2024.
3. Upon the decision of a court or law enforcement authorities: If a court or law enforcement authority issues a decision to conduct a tax inspection, the inspection period and/or types of taxes may be extended.
Example 3: "CC" LLC is being inspected for 2022-2023. However, law enforcement authorities discover that the company obtained illegal income in 2024 and the court orders that 2024 should also be inspected.
4. When the tax declaration deadline falls within the inspection period: If, during the course of the mobile tax inspection, the deadline for submitting tax returns for profit, income, property, or land taxes expires, the inspection period and/or tax types may be extended.
Example 4: A mobile tax inspection was initiated for "AA" JSC in September 2023, covering tax returns for 2020, 2021, and 2022, as well as monthly and quarterly tax returns for 2023. If the inspection continues until June 2024, the tax authority may include the annual tax returns for 2023 in the inspection period.
A mobile tax inspection, according to the Tax Code, is a procedure carried out by tax authorities to check the taxpayer’s business activities, accounting records, and other tax-related operations on-site. The main purpose of the inspection is to check the correct fulfillment of tax obligations by taxpayers and, if any violations of tax legislation are found, to take measures to eliminate them.
In which cases can the period covered by a mobile tax inspection be extended? Tax expert Zirəddin Məmmədov clarifies the issue:
According to Article 36.3 of the Tax Code, unless otherwise provided, the mobile tax inspection can cover the last three calendar years of the taxpayer's activities for profit, income, property, and land taxes; for other taxes, the inspection can cover no more than the last three years, including the year of the inspection.
The period of a mobile tax inspection or the types of taxes being inspected can be extended in certain cases. These cases are specified in Article 36.3-1 of the Tax Code:
1.At the request of the taxpayer: If the taxpayer requests an extension of the inspection period, this is possible.
Example 1: "AA" LLC is being inspected for 2023-2024. The company clarifies that some data for 2022 were not discovered during previous inspections. The company requests that the 2022 period be included in the inspection. The tax authority accepts this request and extends the inspection period to include 2022.
2. In case of reliable information on tax evasion after the inspection period: If there is reliable information about tax evasion after the inspection period, the inspection period and/or tax types can be extended.
Example 2: "BB" JSC is being inspected for 2022-2023. During the inspection, the tax authority finds that the company has intentionally reduced turnover in 2024 by not submitting electronic invoices. Based on this new information, the inspection period can be extended to include 2024.
3. Upon the decision of a court or law enforcement authorities: If a court or law enforcement authority issues a decision to conduct a tax inspection, the inspection period and/or types of taxes may be extended.
Example 3: "CC" LLC is being inspected for 2022-2023. However, law enforcement authorities discover that the company obtained illegal income in 2024 and the court orders that 2024 should also be inspected.
4. When the tax declaration deadline falls within the inspection period: If, during the course of the mobile tax inspection, the deadline for submitting tax returns for profit, income, property, or land taxes expires, the inspection period and/or tax types may be extended.
Example 4: A mobile tax inspection was initiated for "AA" JSC in September 2023, covering tax returns for 2020, 2021, and 2022, as well as monthly and quarterly tax returns for 2023. If the inspection continues until June 2024, the tax authority may include the annual tax returns for 2023 in the inspection period.