As an entrepreneur or institution, you are eager to be in control in a variety of areas, from the realisation of your objectives to your tax processes. The latter is important not only to your business or institution, but also to the Dutch Tax and Customs Administration. But how do you demonstrate to the Tax and Customs Administration that you have your tax affairs in order? Random statistical sampling is of invaluable assistance in this matter.
Being in fiscal control, according to the Tax and Customs Administration
The Tax and Customs Administration oversees organisations. The form and intensity of this oversight depends on the extent to which a company is in control of its tax affairs. But how does the Tax and Customs Administration determine this? In order to do so, it needs insight into the establishment, existence and functioning of an organisation’s internal tax control measures. On that basis, it determines what kind of supervision an organisation is to receive.
Tax and Customs Administration random statistical sampling
As part of its oversight, the Tax and Customs Administration carries out random statistical sampling. What does the Tax and Customs Administration use such random statistical sampling for? Firstly, for the purpose of tax-technical inspections. This might involve e.g. wage taxes and VAT. In this way, the Administration checks, for example, whether your VAT returns add up. Secondly, the Tax and Customs Administration uses random statistical sampling in evaluating the quality of tax processes and control measures. This is also known as the Tax Control Framework.
Implementation of random statistical sampling
You don’t need to wait until the Tax and Customs Administration carries out random statistical sampling for your company. You can also do it yourself. In this way, you can make the functioning of tax processes transparent and test them, fast and effectively. Moreover, you can ensure your tax returns are deemed acceptable. This is also known as Tax Assurance.
It is Tax and Custom Administration policy that its its supervision depends on measures - in this case random statistical sampling - which you yourself have to carry out, or have carried out on your behalf by a third party. The main advantage of doing it yourself (or having a third party do it on your behalf) is that you take the initiative, thereby maintaining control.
Need help with random statistical sampling?
Whether it is your organisation or the Tax and Customs Administration which carries out the random statistical sampling, it has become an irreplaceable element in current practice. Do you need assistance? Meijburg & Co’s tax advisors are here to help. Not only can they carry out random statistical sampling, but they can also critically assess that of the Tax and Customs Administration. Would you like more information? Please call one of our specialists.