Tax audit risks: material errors in tax declarations and omissions in inspection reports

Abstract

The article analyzes tax audit risks, notably errors in tax declarations and omissions in technical reports, reflecting how inspection actors deal with them. Tax audit verifies compliance with tax obligations and prevents infractions, thus combating tax evasion. In Mozambique, tax inspection is regulated through the Basic Law of the Tax System and respective regulations. The results reveal that the risks are tax declaration and payment errors, embodied in tax evasion, achieved by manipulating legal provisions or omitting taxable facts. To mitigate this, priority should be given to monitoring problem taxpayers and permanently monitoring their activities. Regarding omissions in the reports, there must be a rigorous selection of personnel, opting for staff with experience, knowledge of accounting, taxation, financial management, economics, auditing and especially knowledge of tax legislation, thus avoiding preference for amateur staff, so abundant in our Tax Administration.