To undergo a fiscal investigation, even when we know that we are perfectly in the legality and that nothing can be held against us, is not something very pleasant. Here are the 10 main elements that can trigger a tax audit. Knowing about them may keep you from committing any errors that could attract the attention of tax authorities and help you significantly reduce the probability of being investigated.
1- The denunciation
Unfortunately, that is the main factor which brings on a tax audit.
Most commonly, it is jealousy that leads to denunciation by one of your relatives who feels slighted or by one of your competitors who seeks to destabilize you.
So be vigilant, stay discreet about your business.
2- The delay for tax returns
Don’t be labeled as lax by the tax services, you could be subject to a tax audit. Pay particular attention to submit your statements within the time limits.
3- Incomplete declarations
Tax services, just as for late statements, detest statements that are incomplete or erroneous. Do not alter your statements, be clear, precise and rigorous in filling out the forms.
4- Refined institutions
These institutions may suffer a tax audit. Tax agents will be delighted to obtain a list of the people who attend them. If your name is found, it is likely that you will quickly undergo a fiscal control, especially if the income you declare is modest.
5- The external signs of wealth
As for the list of the members of “upper-crust” institutions, the tax services employ many strategies to get to know who leads an easy lifestyle. In addition, if you show your wealth publicly, the jealousy of your entourage will descend on you.
Here are a few external signs that can attract the attention of the tax services:
- Driving a luxury car: above a certain number of horsepower, car registration papers are automatically transmitted to the tax services.
- Possessing jewelry of value: statements to insurance companies will be examined.
- Buy clothes from great fashion designers: the client files may be consulted.
- Acquire a personal plane, a boat, a race horse, real property … also attract attention.