Tax audits of customs payments

Abstract

Subject. The article examines issues related to the organisation of audits and audit methods used to validate that all customs payments were duly calculated, recorded, and paid. Currently, these control measures are carried out separately by customs authorities, tax inspectors, and external or internal auditors. Such an approach reduces the effectiveness of audits and does not provide for the minimum level of audit risk. Therefore, this article substantiates a systematic approach to tax audits with regard to customs payments from the perspective of all stakeholders in tax relations. Objectives. To provide recommendations related to the organisation of tax audits and methodology of tax audits related to customs payments in the context of the modern digital economy and risk-based audits. Research methods. To achieve the goals, the scientific methods of analysis, synthesis, classification, and systematic approach were used. The research was based on the study of the current regulatory framework, relevant economic research papers and journals, and factual materials. Results. The authors of the article carried out an overview of the definition of “tax audits” and proposed their own definition in the context of audits of customs tax payments. The characteristics of various levels of tax audits with regard to customs payments were systematised to validate that all customs payments were duly calculated, recorded, and paid. Conclusions. It was concluded that currently there is no systematic approach among scientists to the definition of “tax audits”, as well as to its organisation and methods. The obtained results can be used for further development of ideas about tax audits with regard to customs payments which, in their turn, can contribute to making informed and effective decisions in the area of administration of taxes and levies.

Keywords

• inspection
• value added tax
• customs procedures
• excise taxes
• customs value