Tax inspection

 

Comprehensive and topical inspection

The tax administrator shall be independent in its selection of taxpayers for inspection and shall establish the scope and time of the inspection thereof.

Comprehensive inspection is the inspection of the discharge of tax obligations which includes the verification of correct calculation, declaration and payment of all taxes paid by the taxpayer and administered by respective tax administrator over a certain period of time.

Topical inspection is inspection of the discharge of tax obligations which includes the verification of correct calculation, declaration and payment of a specific tax (taxes) paid by the taxpayer and administered by the relevant tax administrator over a certain period of time.

A tax inspection may be conducted at the tax administrator's office and/or at the taxpayer's location:

1. The taxpayer must create the required conditions for the tax administrator to conduct a tax inspection, i.e. dedicate appropriate workplace, etc.

2. Inspection at the tax administrator's office may be conducted when proper working conditions are not created for the tax administrator's officer and in other cases (for example, when a taxpayer who is a natural person is inspected, or when a topical inspection is conducted, for the performance whereof it is easy for the taxpayer to submit all the necessary documentation).

3. During the tax inspection, officers of the tax administrator may not limit themselves to a single location of the performance of the tax inspection, for example, when conducting a tax inspection at the tax administrator's office and in case of the need to examine additional circumstances of facts, the officer of the tax administrator can go to the  taxpayer's location.

Frequency of tax inspections:

1. A comprehensive inspection may be conducted not more than once per year.

2. A topical inspection may be conducted not more than once per six months.

When determining the frequency of comprehensive or topical tax inspections, the date of completion of the last comprehensive or topical tax inspection is considered, i.e. the date of the decision on the approval of an inspection report or approval of inspection results by an inspection certificate. The limitations of the frequency of tax inspections shall not apply in cases laid down in paragraph 3 of Article 117 of the Law on Tax Administration.

Additional inspection is subject to limitations laid down in Article 118 of the Law on Tax Administration.

LEGAL INFORMATION

Articles 114, 115, 116, 117, 118, 119, 120, 121, 122, 123, 124, 125, 126, 127, 128, 129, 130, 131, 132, 133 of the Law on Tax Administration.

Order No. VA-87 of the Chief of the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania of 5 May 2004 "On the Approval of the Rules for Conducting Tax Inspections, Registration of their Results and Approval".

Order No. VA-3 of the Chief of the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania of 13 January 2005 "On the Order for Inspection Form FR0773 and Approval of the Rules for its Completion".

Order No. VA-90 of the Chief of the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania of 10 May 2004 "On the Forms of Notice on the Tax Inspection, Inspection Report, Inspection Certificate and Decision on the Approval of the Inspection Report as well as Approval of Rules for the Completion of these Forms".

Order VA-2 of the Chief of the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania of 8 January 2009 "On the Approval of the Rules for the Use of Document Forms and their Completion as well as the Approval of Forms".

Operational inspection

The tax administrator shall be independent in its selection of taxpayers for inspection and shall establish the scope and time of the inspection thereof.

Operational inspection is the inspection of the performance of specific obligations by a taxpayer in the fields of accounting, tax declaration, tax payment, registration as a taxpayer and other fields.

This type of the tax inspection differs from comprehensive and topical tax inspections by the fact that at the time thereof the taxpayer properly performs other obligations he is subject to in accordance with tax and other legislation (for example, his timely registration as a taxpayer, timely reporting of the change registration data, accounting conducted in compliance with legislative requirements) rather than inspecting the correctness of the calculation, declaration and payment of taxes.

Operational inspection can also be aimed at inspecting the performance of obligations that the taxpayer is subject to in accordance with the Law on Alcohol Control of the Republic of Lithuania, Law on Tobacco Control of the Republic of Lithuania and other legislation, also in order to collect counter data, i.e. to receive information on the taxpayer bound by economic financial relations with the inspected taxpayer the absence of which does not allow completing inspection of another taxpayer. 

In the performance of operational inspections by the State Tax Inspectorate, provisions of the Code of Administrative Violations (hereinafter - the CAV; since 01-04-2016 - Code of Administrative Offenses, hereinafter – CAO) and the Law on Tax Administration, if certain issues (procedures) are not governed by the CAV) (CAO since 01-04-2016) are followed.

LEGAL INFORMATION

Articles 114, 115, 116, 119, 120, 122, 123, 124, 125, 126, 127, 128, 133 of the Law on Tax Administration.

Order No. VA-128 of the Chief of the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania of 23 June 2004 "On the Order for the Performance of Operational Inspection and Approval of the Rules for the Registration and Approval of its Results".

Order No. VA-71 of the Chief of the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania of 30 December 2008 "On the Order for the Performance of Operational Inspection and Approval of the Rules for the Use of Forms of Registration of Operational Inspection Results and their Completion".