Tax audits are on the rise in all tax areas
In the event of a dispute, PwC Legal will work with you negotiate or to litigate to find the best resolution, from Strategy through Execution.
The cross-border exchange of information between the tax authorities within the EU and globally post BEPS has increased substantially. Furthermore authorities embrace technology to make (un)announced audits more efficient and effective.
Increased (un)announced tax audits
Budgetary pressure on tax authorities and an enhanced global/EU exchange of information and international collaboration result in an increasing number of tax audits. National legislation and modern tools like data mining and e-auditing enable the tax authorities to conduct well-prepared tax audits and to enforce tax legislation.
Impact on the bottom line in case of direct and indirect tax audits
Due to global and EU initiatives both on exchanging direct tax, customs and VAT data next to different leaks, the tax authorities dispose of enormous amounts of valuable taxpayer information. Audits regularly have a cross-border aspect and can result in international double taxation. In case of indirect tax audits on customs, excise or VAT the consequence on the company may be material not only regarding the taxes claimed but also the related penalties and the difficulty to recover the amounts from a supplier/customer Some of those audits may be simultaneous in multiple jurisdictions or may even be initiated by OLAF. Some of them can also be organised by the police.
When faced with a tax audit/dispute, the fundamental rights (Charter of the Fundamental rights of the EU, ECHR) of the taxpayer must be respected and, if necessary, enforced.
We‘ll support you throughout the tax dispute lifecycle to safeguard your rights and minimise the impact on your business and reputation. We can help with disputes related to all types of taxes.
With our expertise in tax policy, tax litigation and tax dispute resolution, we can:
PwC Legal will work with you to develop and manage local or global coordinated dispute resolution and litigation strategies, starting with the question of whether to litigate or to negotiate.
We’ll develop your defence strategy, taking into account national legislation, EU law, international law, fundamental rights of the taxpayer and both national and international case law.
PwC Legal will act on your behalf during audits, (fraud) investigations and raids by national or international authorities (OLAF-investigation).
We’ll act on your behalf during investigations and negotiations with the Public Prosecutor’s Office.
We’ll defend your interests before both national (Court of First Instance, Court of Appeal, the Constitutional Court and the Supreme Court) and European courts (the European Court of Justice or the European Court of Human Rights). PwC Legal’s expertise has resulted in various landmark cases.
PwC Legal will assist you with both regulatory and voluntary disclosures.
We’ll guide you through administrative appeals and settlement discussions through negotiation with authorities, policymakers and mediation and arbitration procedures.
Where needed, we’ll file complaints with the European Commission as part of your defence and to protect your interests in EU Member States.