What is a tax audit?

In a tax audit, the Finnish Tax Administration audits the accounts and other materials of Finnish taxpayers, those on the tax prepayment register or some other actor responsible for taxation. The tax audit clarifies whether taxation has been assessed properly according to the Finnish tax legislation.

Bookkeeping is the foundation of taxation

Taxation is largely based on bookkeeping, which is regulated by the Finnish Accounting Act. It is, therefore, natural that a tax audit is targeted at the company’s bookkeeping and other written material. Bookkeeping must be based on so-called generally accepted accounting principles, which means, among other things, obeying the regulations of the authorities as well as the statements and exemptions of the Accounting Board. Besides the accounting records and documents, a tax audit may also go through a company’s contracts, deeds of sale and other similar materials.

What is the purpose of a tax audit?

A tax audit monitors whether the bookkeeping entries correspond to the facts and whether the information on the accounting records has been submitted correctly to the Tax Administration.

All natural and legal persons in Finland, both Finnish and foreign, can be audited, as can their status as taxpayers. This means identifying whether a specific business, a part of a business or an individual person is a potential taxpayer in Finland.

Read more on what happens in a tax audit.