Each year, the Tax Agency announces the industries on which they will focus in their work to counter-act errors and cheating. Through the execution of extra checks and controls and a number of audits, the Agency will seek to reduce the risk of taxpayers making errors. Will you be impacted by the Agency’s focus this year?
The Tax Agency is of the opinion that the will to do the right thing exists but that there is also a major lack of knowledge. A number of the areas on which the Agency has chosen to focus this year are areas where experience shows that there can be errors. One will also work to counter-act black labour and unfair competition between companies.
During 2017, the Tax Agency will primarily examine:
- Allowable labor (domestic services) tax deductions for repairs, conversions and extensions to homes in the context of new housing projects and also as regards usual housing real estate sales, where the seller has requested deduction of improvement costs in spite of the fact that they have been granted the allowable labor tax deduction. Companies offering moving services and roofing services will be subject to extra examination measures this year to, amongst other things, reduce the risk that material costs are reported as labour costs.
- Electronic staff registers in the construction industry and cash registers. The Tax Agency states that a soft approach was implemented during the controls undertaken in 2016 but that during 2017 they will sharpen these checks as regards non-registered construction sites.
- Digital economy and sharing economy. In the controls executed in 2016, the Tax Agency found that there was a major lack of knowledge as regards how one is to report rental revenues in the renting out of residences, and these enhanced controls will continue also this year. The Tax Agency will also investigate e-commerce and other parts of the more hidden areas within internet based commercial operations and virtual currencies.
- Serious economic crime. The audits will primarily aim at counter-acting organized black labour, invoicing fraud and false income statements and tax deductions. The industries to receive extra attention are, amongst others, the construction-, transport- and the cleaning industries.
- International tax arrangements. The Tax Agency’s international control unit will continue to investigate these arrangements together with other countries.
How the Tax Agency undertakes its checks and control measures
The Tax Agency has various means for identifying errors and cheating in tax returns. As regards private individuals, the Tax Agency usually selects a number of income tax returns and can, subsequently, present further questions.
For companies, the extra controls can comprise of a more extensive examination of the company’s tax return, but this can also take place through so-called tax audits where the Agency executes a more thorough examination of the company’s bookkeeping and documentation.
We can help you to decrease the risk of errors in the operations or in your private income tax return. If you have questions regarding, for example, electronic staff registers, allowable labour tax deductions (domestic services), the renting out of residences or how you are to declare the sale of your property, feel free to contact us so we can provide you with the required assistance.
If you receive questions from the Tax Agency or are the subject of a tax audit, contact us at an early stage in the process so we have a greater possibility to assist you.
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