Tax review: how it works and what benefits it entails

Process helps companies reassess their tax burden, improve compliance and identify credit recovery opportunities

By Amanda Martines

Is it possible to improve your company's tax compliance? A tax review may provide the answer to this question. What is certain is that, more often than not, many opportunities for improvement are pointed out thanks to this assessment.

Changes in tax legislation are quite common in Brazil, so maintaining compliance takes a lot of effort. One must be constantly up to date to comply with the rules properly, thus companies should re-evaluate their tax strategies and optimization opportunities from time to time.

In this article, we will show you how a tax review works and how it can be a valuable tool for companies in this regard.

How does a tax review work?

A tax review is a detailed procedure consisting of a thorough analysis of the calculation of the company’s taxes and the compliance with its ancillary obligations. This entails cross-checking information against accounting records and other related documents.

By doing this, it is possible to check for miscalculations, incorrect application of the laws governing the company’s activities and other mismatches present in tax returns, balance sheets, financial statements and relevant agreements.

Experts can also map out opportunities for tax relief, such as overpaid taxes, unused deductions, unclaimed tax credits and applicable tax breaks.

Breakdown of the last five years

A tax review can provide a breakdown of the company’s fiscal compliance for the last five years, which is the length of time within which Brazilian authorities can enforce the fulfillment of a primary and ancillary tax obligation.

Benefits of a tax review

Carrying out this assessment offers numerous benefits, such as cost reduction and risk mitigation. Check out these and other advantages of a tax review:

Read more: Tax offsets and refunds: from tax review to PER/DCOMP

Tax efficiency and optimization

In order to reap the benefits of a tax review, it is paramount to rely on specialists who have an in-depth understanding of the Brazilian tax environment and are always up to date with the relevant legislation.

Domingues e Pinho Contadores brings together a team capable of assisting companies of all sizes and segments in their challenges, aiming at the optimization and the efficient management of their taxes. You can count on our support: dpc@dpc.com.br.