How are companies selected for a tax audit (by the fiscal authorities)?

When they ask for a refund?
On a random basis?
Based on risk analysis?
By company size?
Other?

(83% of economies responded to this question).

The way in which companies are selected for a tax audit, and the subsequent way in which the audit is conducted, can be a source of concern for companies and can add to the perception of complexity. Over 50% of contributors to the Paying Taxes study report that they see their tax laws as ambiguous. The responses to this question provide a useful starting point in assessing how the tone and stance of the tax authority will impact. The chart below shows the wide range of responses to the question.