|
CONTRIBUTION OF THE
ENGAGEMENT TO OUR CLIENT
At the first glance, tax
authority is seemed to
be the sole beneficiary
of this engagement.
However, this engagement
provides following
contributions to our
client:
a. As this engagement
includes all the main
topics of our “tax
consultancy” and “financial
management consultancy”
engagements, our client
saves the costs of such
consultancies.
b. Our client enjoys the
comfort of compliance
with tax legislation. As
this engagement is
carried out on
continuous basis,
non-compliances are
detected and corrected
on timely basis.
c. The possibility of
undergoing a tax
authority’s
investigation is
significantly reduced.
Hence, our client saves
time and energy utilized
in the conduct of such
investigation.
[According to the
relevant legislation,
documents sealed by a
SCPA(1)
are considered as
examined by the tax
authority, yet tax
authority’s
re-investigation right
is reserved. In
practice, the tax
authority does not use
this re-examination
right unless there is an
evidence of
non-compliance].
d. Our client is not
obliged to have his tax
returns signed by a CPA(2)
[According to
legislation, each
taxpayer whose prior
year turnover and asset
total are lower than
pre-determined amounts
and who does not have a
full tax certification
contract with a SCPA is
obliged to have their
tax returns signed by a
CPA]
e. This engagement
includes continuous
supervision of the
activities of accounting
departments. This
provides our client with
the comfort of having a
smoothly operating
accounting department.
f. In relation with
certain transactions for
which a SCPA
certification report is
applicable, the tax
authority laid down the
condition that this
report should be
prepared by a SCPA with
whom the subject tax
payer had signed a full
tax certification
contract. [For example;
refund to a tax payer of
the withheld tax amount
in excess of the amount
accrued at year end].
Our client also fulfils
this condition.
Footnotes:
(1) SCPA: Sworn-in
Certified Public
Accountant
(2)
CPA: Certified Public
Accountant
|
