Legal basis · Tax field audit

Iceland

áætlun skattstofna — estimation of tax bases

Findings at a glance

  • Traceability of the calculation
  • Completeness of the data basis
  • Requirements for counter-evidence
  • Burden of proof and its reversal

exceeded · met

Traceability of the calculationexceeded

The estimate must be made so generously that there is no risk of the amounts being estimated lower than they actually are.

CitationLög um tekjuskatt nr. 90/2003, 95. gr.

What we provideEvery figure is traceable down to the individual document. The chain of calculation can be walked in both directions — from the result to the document and back.

Completeness of the data basisexceeded

Estimation applies where the return, individual items or attachments are incomplete, unclear or open to suspicion, are not recorded in the manner prescribed by law, or are insufficiently signed.

CitationLög nr. 90/2003, 96. gr.

What we provideA full census across all accounts, suppliers and product groups. No sampling is used; 100 per cent is the upper limit and cannot be exceeded by any method.

Requirements for counter-evidenceexceeded

The authority must request the taxpayer in writing to remedy the defect within a set period and to supply written explanations and documents, including the accounts. If sufficient explanations and documents arrive in time, the assessment follows the return.

CitationLög nr. 90/2003, 96. gr.

What we provideA closed system: purchasing, production, masses, unit counts, sales channel and revenue support one another. A single incorrect figure shows up against the others.

Further information — 1 axes

Burden of proof and its reversalmet

The power to estimate is triggered by incompleteness, lack of clarity or suspicion.

CitationLög nr. 90/2003, 96. gr.

What we provideThe evidence is prepared so that the reversal of the burden remains traceable and the counter-evidence engages with the calculation, not with the objection.

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