The verification of the actions of the board members in terms of tax compliance is a special type of audit aimed at ensuring that individuals in these positions adhere to tax laws and regulations. This process is particularly crucial for shareholders – for the control of corporate tax payments to identify potential issues with the State Revenue Service (VID). To uncover risks, control measures must be taken during corporate mergers and acquisitions, evaluating investments, or preparing for audits by tax authorities. Here is a more detailed explanation:

1. Assessment of residents’ tax compliance: It involves reviewing the personal tax matters of board members and shareholders to ensure they have complied with tax declaration and payment obligations. This may include an examination of their income tax declarations, capital gains taxes, and other relevant tax obligations.

2. Identification of conflicts of interest: The process checks whether there are any conflicts of interest arising from the personal financial transactions of board members and shareholders. Such conflicts can impact the company’s tax strategy or compliance status.

3. Review of related-party transactions: A thorough examination of all transactions between the company and its board members or shareholders, or transactions involving related parties, especially in areas such as proper transfer pricing determination.

4. Ensuring compliance with disclosure requirements: Board members and shareholders may be subject to specific disclosure requirements in certain jurisdictions, especially if they hold significant interests in the company. A proper audit process ensures compliance with these disclosure requirements to avoid penalties.

5. Analysis of the impact on company taxes: Understanding how the individual tax positions of board members and shareholders can affect the overall tax strategy of the company. This includes assessing all possible risks or obligations that may arise from their personal tax positions.

6. Audit of historical tax issues: Examination of all historical tax problems or disputes related to board members or shareholders that could affect the company’s reputation or tax status.

7. Consultation on best practices: Based on the findings, providing advice to board members and shareholders on best practices for ensuring tax compliance and aligning their personal tax strategies with the company’s tax obligations and goals.

This aspect of the reliability audit ensures that the private tax matters of individuals holding key management positions do not pose a risk to the company and that they comply with both legal requirements and corporate governance ethical standards.