What is a Tax Audit?
A tax audit is an examination performed by the MIRB on a taxpayer’s business records and financial affairs to ascertain that the right amount of income is declared and the right amount of tax is calculated and paid in accordance with tax laws and regulations.
Generally, there are two types of tax audit being performed by the MIRB, namely the desk audit and the field audit.
What is a Tax Investigation?
Tax investigation on the other hand is a more severe enforcement measure undertaken by the MIRB.
Generally, the objective of a tax investigation is similar to a tax audit but is carried out should there be a suspicion by the MIRB based on any precise and definite evidence to show that the taxpayer has deliberately avoided taxes or committed an act of willful evasion under the tax laws. As tax audit or investigation is an intensive process which is time consuming and may require additional resources, it is important that this process is handled with great care to ensure a desirable outcome is achieved.