Purpose of Investigation
The purpose of a tax audit is to verify that the company or individual subject to the audit has filed a correct tax return.
No matter where you go, the stance is basically the same.
You don’t want to hear that you have filed your taxes properly and that your friends are making a lot of money but not paying any taxes at all.
When I joined the tax office, I was often told in training that “we must not create a society where honesty makes fools out of us.
So, regardless of who you are or who you are dealing with, the basic rule is that you should check your tax affairs in the same way, using the same standards.
Even if, of course, the way we proceed and the points to be checked may differ slightly depending on the size of the company and the type of business.
(Inspection and investigation conducted with a court warrant in the case of tax evasion is different, and just because it is voluntary does not mean that you have to accept it.)
However, even if it is not a mandatory investigation, I think people would feel uncomfortable if they were in a position to be subjected to such an investigation.
I have heard of a person who once said, “I don’t mind tax audits at all.
I don’t mind a tax audit at all. I will show you anything. I’ll show you anything.
They are happy because the tax office will look at their accounting data for free, point out any errors, and help them improve their company’s accounting in the future.
From the investigator’s point of view, this makes me laugh.
How about the investigator’s point of view?
From the taxpayer’s point of view, tax audits are basically unpleasant.
However, the investigator who conducts the tax audit is also under a great deal of stress.
Basically, it is not a position to be welcomed, and there is a case in which it is said that it can be lightly swept away if it is a complaint, but there is also such a case that it is said that it is like fright.
There may be a psychopathic person who does not mind such a thing (the receiving side is hard if it is such an investigator), but an investigator is also a human being.
If it is not said even if it is hated, it does not become work.
There are many people who become an investigator, and there are even people who join the tax office by chance because they want to be a public official.
I was a bank employee when I happened to learn about the employment examination for the tax office (called the National Tax Specialist Examination), and I took that exam only.
In other words, I joined the tax office because I wanted to join.
Even I was quite nervous before the investigation.
If a company had a website, I would check it the night before the day of the investigation.
Although I was not forced to do so as part of my job until the night, I sometimes looked at the website because I felt I had to keep various information in my mind in case I went to the survey.
If you ask me if all investigators are the same, I would say that some are not nervous and don’t think about their work after they leave the tax office at the end of their working hours.
However, I think this is a normal feeling, because even in the private sector, there are times when work is not far from your mind after work, or when you meet a customer or client for the first time, you may feel more or less nervous.
Taking the other party’s position into consideration
By “taking the other party’s point of view into account,” I do not mean that you should follow all the points raised by the investigator without refuting them, or that you should accept the points raised because the investigator has a tough job and you feel sorry for him or her.
Investigations may be uncomfortable from the taxpayer’s perspective, but the investigator conducting the investigation may also be nervous.
The other party is also a human being, a businessman working in an organization, and you should deal with them accordingly.
If you refuse to submit documents without a reason, ignore communications or requests, or do other things that may reflect poorly on you, the person conducting the investigation will become defensive.
It is a good idea to communicate and respond properly.
If you are not sure whether you will be able to give a good explanation when you are questioned, have a tax accountant intervene with you.
If you have a tax accountant, he or she should be able to explain the taxpayer’s position to you.
You can also ask your tax accountant to stay with you after you have been contacted about the investigation.
Although the investigation may be unpleasant, do not be more defensive than necessary.
Editor’s Postscript
Yesterday, after updating the blog, I went to a cafe with my family. After returning home, I watched the Kashima game and wrote down some topics while pondering about the future.
One new thing a day
- Meat and Vegetable Stir-Fry
※当初日本語でアップした記事ですが、英訳を作りたいと試行錯誤していたら、元記事が全て英訳されてしまいました。
もう一度日本語に翻訳してみるとだいぶニュアンスが異なる文章になってしまったので、本記事は英文のままアップしておきます。
明日以降、英語での翻訳にはついてはまた試行錯誤してみます。本記事はもしよろしければ英語で読んでみてください。