How long can a scheduled tax audit take?

The tax service in the Dnipropetrovsk region explains how long a scheduled tax audit may take.

It is noted that according to paragraphs one and two of p. 75.1 of the Tax Code of Ukraine (TCU), controlling authorities have the right to conduct desk audits, documentary audits (scheduled or unscheduled; field or non-field), and actual audits.

Desk and documentary audits are carried out by controlling authorities within their powers exclusively in cases and in the manner established by the TCU, while actual audits are governed by the TCU and other laws of Ukraine, compliance with which is monitored by the controlling authorities.

The timelines for conducting a documentary scheduled audit are established in Article 82 of the TCU (p. 77.7 of the TCU).

The timelines for conducting a documentary unscheduled audit are established in Article 82 of the TCU (p. 78.6 of the TCU).

According to p. 82.1 of the TCU, the duration of audits specified in Article 77 of the TCU should not exceed 30 working days for large taxpayers, 10 working days for small business entities, and 20 working days for other taxpayers.

Extensions of the audit duration specified in Article 77 of the TCU are possible at the discretion of the head of the controlling authority for no more than 15 working days for large taxpayers, no more than 5 working days for small business entities, and no more than 10 working days for other taxpayers.

According to paragraphs one to eight of p. 82.2 of the TCU, the duration of audits specified in Article 78 of the TCU should not exceed 15 working days for large taxpayers, 5 working days for small business entities, 3 working days for individual entrepreneurs without hired employees, provided that the conditions set out in paragraphs three to eight of this point are met, and 10 working days for other taxpayers.

Extensions of the duration of audits specified in Article 78 of the TCU are possible at the discretion of the head of the controlling authority for no more than 10 working days for large taxpayers, no more than 2 working days for small business entities, and no more than 5 working days for other taxpayers.

A documentary unscheduled audit based on the grounds specified in p.p. 78.1.7 of the TCU for individual entrepreneurs without hired employees is conducted within the timeframe set by paragraph one of p. 82.2 of the TCU, provided that during the last two calendar years the following conditions are simultaneously met:

– the taxpayer has submitted a tax declaration indicating no income from business activities;

– the taxpayer is not registered as a value-added tax payer;

– there is no tax information in the controlling authorities regarding:

• the use of hired labor by the taxpayer;
• bank and other financial institution accounts opened by the taxpayer, as well as accounts with non-bank payment service providers/e-wallets in electronic money issuers.

Thus, the duration of a documentary scheduled audit should not exceed 30 working days for large taxpayers, 10 working days for small business entities, and 20 working days for other taxpayers.

Extensions of the duration of a documentary scheduled audit are possible at the discretion of the head of the controlling authority for no more than 15 working days for large taxpayers, no more than 5 working days for small business entities, and no more than 10 working days for other taxpayers.

The duration of a documentary unscheduled audit should not exceed 15 working days for large taxpayers, 5 working days for small business entities, and 3 working days for individual entrepreneurs without hired employees, provided that the conditions specified in paragraphs three to eight of p. 82.2 of the TCU are met, and 10 working days for other taxpayers.

Extensions of the duration of a documentary unscheduled audit are possible at the discretion of the head of the controlling authority for no more than 10 working days for large taxpayers, no more than 2 working days for small business entities, and no more than 5 working days for other taxpayers.

If, during the audit, the taxpayer provides documents less than three working days before its completion or if the documents sent in accordance with the procedure established in paragraph one of p. 44.7 of the TCU arrive at the controlling authority less than three working days before the end of the audit, the audit may be additionally extended to the timeframes established in p. 82.2 of the TCU for a period of three working days (paragraph nine of p. 82.2 of the TCU).