VAT

What Happens After An Assurance Visit?

End of the Field Visit

At a reasonable time after the end of the field visit the tax officer will arrange a meeting with you to discuss any areas of non-compliance and if the assurance visit would result in a Proposed Adjustment or a “No tax change” letter from the Department.

What is a 'No Tax Change' Letter?

Is simply a notice from the department informing you that the Assurance Visit at this time has not detected any material under-reporting issues that require a re-assessment. However, the Department reserves the right to conduct an in-depth review of your business in the future for the same periods.

Responding to a Proposed Adjustment

The tax officer will discuss any proposed adjustments and explain the rationale for them. You will also be given a reasonable amount of time to respond to the proposal. Before finalizing the visit, the officer will carefully consider your explanations and respond to your questions about the findings. If issues remain unresolved, you can contact the auditor’s supervisor to discuss them further.

Notice of Assessment

If we have to adjust your return, the officer will arrange to have an amended Assessment mailed to you. If the adjustment results in an increase in the amount of your refund, the additional amount will be carried forward as a credit adjustment on your account, in the prescribed time frame for credit payments.

What happens if you disagree with your Assessment?

If you are dissatisfied with the assessment you can object in writing stating the grounds for their objection which must be made within thirty (30) calendar days after the service of the notice of the assessment or decision.

The objection must be accompanied by payment of all of the tax not in dispute and fifty percent of the tax in dispute.

The Department will make every effort to resolve the matter with you within a reasonable time frame.

If you still are not in agreement with the assessment provided by the Comptroller, you may appeal in writing to the Appeal Commissioners to a decision on an objection within thirty (30) calendar days if dissatisfied after being served with the notice of the decision of the Comptroller.

An appeal against a decision by the Comptroller may be considered by the Appeal Commissioners if the Comptroller certifies that-

The person assessed has paid the full amount of the tax due under the assessment; or
The Comptroller is satisfied that the person objecting is unable to pay the full amount of the tax due and has given sufficient security, for the amount of tax unpaid and interest that may become payable.

Appeals may be made to the High Court and further to the Court of Appeal if the person is dissatisfied with the decision. The appeal can be made only on questions of law, or including questions of mixed fact and law, and the notice of the appeal must state the questions of law that will be raised on the appeal.

Burden of Proof

The burden of proving that an assessment is excessive or that a decision of the Comptroller is wrong is on the person objecting to the assessment or decision.

Your Responsibilities

By law, you are required to maintain proper books and records.

Records mean accounting records, accounts, books, computer stored information, or any other relevant documents.

The law stipulates that these books and records must be retained

for a period of six (6) years after the end of the period to which it relates;
in the English Language and in Eastern Caribbean Currency;
in Saint Lucia

If you use a computer to maintain your accounting records, you must keep the books and records in an electronically readable format, even if they are also kept on paper.

Using the services of an accountant, auditor or a tax professional does not relieve you of these responsibilities.

For an assurance visit, we ask that you make available to the tax officer your books and records (both paper and electronic), as well as any supporting documents for the period or periods under review.

Before the Assurance Visit Takes Place

The Tax Officer will contact you to arrange a suitable date and time to conduct the Visit. The officer will provide you with some general information, such as the scope of the assurance visit, periods under-reviewed, information /documents required from you to conduct the review.

Location And Materials

The Tax Officer will generally conduct the assurance visit on your premises. However, in some instances the tax officer may request that you bring in your books and records. It may also be necessary at times to make copies of your electronic records.

Time Involved

An Assurance Visit can take from a few hours to a few days to complete, depending on;

The complexity of your business
Your level of co-operation with the officers and;
The state of your accounting records and related documents

What Happens During An Audit & Assurance Visit

As officers strive to achieve the objectives of the assurance visits, each officer will be required to conduct an interview with the aid of a questionnaire to:

Verify taxpayer’s registration information
Establish an understanding of the taxpayer’s operation
Ascertain an understanding of the taxpayer’s accounting system
Verify that the accounting system is calculating VAT correctly for all types of goods or services
Formulate an assessment of your audit risk to determine the level of testing required to verify your tax Return and
Assess non-business transactions and its impact upon your tax return

Officers will also use their Analytical Skills to:

Check banking records
Compare VAT Returns submitted by the registered taxpayer with the records kept by the registered taxpayer
Confirm purchases and sales records and
Review input tax deductions for appropriate supporting documentation

Discussing Issues

During the assurance visit, the tax officer will discuss identifiable issues with you. At any time, you may raise your concerns with the officer and seek clarification.

Why Does the IRD Conduct Assurance Visits?

The VAT Section of the Inland Revenue Department as part of its Compliance Program conducts Assurance Visits on VAT Returns filed by taxpayers.

The objectives of the Assurance Visits are to:

Verify the accuracy of VAT Returns filed.
Provide guidance and information
Improve compliance
Ascertain sources of information used to file the VAT Return and

Our aim is to ensure the impartial treatment of taxpayers and the integrity of the tax system. We do this by ensuring that the VAT Returns and VAT refund applications are properly prepared, and taxpayers pay the right amount of tax at the right time.