A tax audit may be a correspondence audit or a field audit.

A correspondence tax audit shall be conducted by an order of an authorised person of the tax authority, for auditing specific matters defined by the order. A correspondence tax audit shall be conducted without visiting the location of a person’s activity, based on the person’s taxation-related information available at the tax authority, as well as on clarifications and accounting documents provided by the taxpayer.

 A field tax audit shall be conducted based on an order of an authorised person of the tax authority. A taxpayer shall be sent a written or electronic notice of a field tax audit at least 10 working days prior to commencement of the audit. The audit shall commence not later than 30 days after serving the notice upon the taxpayer. If the audit cannot be started within that time, the notice shall be invalid. A field tax audit may fully or partially audit a taxpayer’s activity. In the course of a field tax audit, the taxpayer shall provide auditors with the same working conditions that normally exist at the taxpayer’s premises. If the specifics of a tax audit require that the audit be conducted in several stages, an interim report shall be executed after completion of each stage. An urgent field tax audit shall be conducted without a written notice, with a court’s permission.

The findings of a tax audit shall be reflected in a report. An authorized person of the tax authority shall make a decision on accrual or non-accrual of taxes and/or fines, based on the tax audit report. A copy of such a decision shall be presented to a taxpayer along with the relevant Tax Notice.