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Accounting & Tax vocabulary · Tax Filing & Compliance

Tax audit

Meaning in accounting & tax, with examples

nounCommon term

In accounting & tax, tax audit means: An examination by the tax authority of a taxpayer's books, returns and documents to check that the correct amount of tax has been declared and paid.

In Turkish: vergi incelemesi, vergi denetimi

How it is used

Tax inspectors open and carry out a tax audit; companies are selected for one or are under a tax audit. It may end with additional tax and penalties. British English also says tax investigation or tax enquiry.

Example sentences

  1. We've been selected for a tax audit covering the last two years.

  2. During the tax audit, the inspector asked for all intercompany contracts.

Common collocations

  • tax inspector
  • under a tax audit
  • open a tax audit
  • tax assessment
  • tax penalty
  • tax returnAn official form a taxpayer submits to the tax authority, reporting income, expenses or sales for a period and calculating the tax due.
  • auditAn independent examination of a company's financial statements and records to check that they are accurate and follow the applicable rules.
  • tax evasionIllegally not paying tax that is owed, for example by hiding income, using false invoices or keeping two sets of books.
  • audit trailA record in time order that shows who entered, changed or approved each transaction and when, so it can be traced back to its source documents.

More terms: Tax Filing & Compliance

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This page explains English vocabulary for learners. It is not financial advice.