(A)  PRIMARY AUDIT OBJECTIVES
Audits performed by the Audit & Investigation Unit have basic objectives:

1. To administer and enforce the tax programs in an equitable manner.
2. To determine proper reporting of the taxpayers audited.
3. To promote accuracy in self-assessments of taxes by educating taxpayers in the application of tax statutes and regulations.
4. To promote voluntary compliance of taxpayers through “visibility” of audit presence.                                                                                                                                                                                                                                                                                                          (ii)
5. Taxpayer files tax return declaring tax overpayment, including particular taxpayer who has received pre-audit refund of tax overpayment especially VAT.
6. Consistent filing problems such as persistent losses and nil filing.
7. Taxpayer does not file tax return or taxpayer fails to file tax return on time as stated in Letter of Reprimand.
8. Taxpayer exercises merger, acquisition, spin off, liquidation, dissolution, or taxpayer is leaving the country forever.
9. Through a risk analysis (risk-based selection) taxpayer’s return shows an indication that tax obligations are not fulfilled.                                                                                                                                                                                                                                        (bi)

   a) When the records and other documents have been destroyed through natural disaster such as fire or flood such that, the tax auditors may not have records to verify them.

   b) Due to illness or absence of the key officers such as managing director or finance directors whose involvement are key to the conduct of the audit.

   c) Due to court order or directive from the Commissioner General or finance ministry by a request made by the taxpayer.

   d) Through the observance of the statute of limitation. That is the audit period might be barred.

   e) When the audit engagement may not have been properly served, such as wrong name or address used in the notification or the audit period may not be properly communicated.

   ii (a) The right to confidentiality.
   The taxpayer has the right to have their tax returns, information to be supplied be kept secure and confidential. The tax auditor should not disclose taxpayer information unless authorized by the taxpayer or by law.

   b) The right to be informed.
   The taxpayer has the right to be informed and receive explanation from the tax auditors about how the assessment to be raised and other issues are arrived and the aspect of the tax laws she/he has infringed. This should be communicated to him in clear manner.

   c) The right to challenge the audit position and be heard.