Revenue Administration : Taxpayer Audit--Use of Indirect Methods

Author/Editor:

International Monetary Fund

Publication Date:

April 14, 2010

Electronic Access:

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Disclaimer: This Technical Guidance Note should not be reported as representing the views of the IMF. The views expressed in this Note are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

This technical note examines the use of indirect methods in a taxpayer audit. Indirect methods involve the determination of tax liabilities through an analysis of a taxpayer’s financial affairs utilizing information from a range of sources beyond the taxpayer’s declaration and formal books and records. Assessments are often based on circumstantial evidence indicating a reasonable estimate of the taxpayer’s correct liability. This note describes why tax administrations need to use indirect audit methods. Indirect audit methods commonly used by tax administrations are elaborated. The legislative requirements for the use of indirect audit methods are also analyzed.

Series:

Technical Notes and Manuals No. 2010/05

English

Publication Date:

April 14, 2010

ISBN/ISSN:

9781455238101/2075-8669

Stock No:

TNMEA2010005

Price:

$10.00 (Academic Rate:$10.00)

Format:

Paper

Pages:

13

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