Tax investigation

Tax investigation

Tax investigation is the monitoring the taxpayer's activities by officer of the tax administrator, which includes an analysis and evaluation of tax returns (reports, statements), documents and any other information available about the taxpayer, also visiting taxpayers, controlling activities of the taxpayer to the extent relating to calculation, declaration and payment of taxes in order to identify and eliminate any deficiencies and contradictions in respect of the calculation, declaration and payment of taxes.

During the tax investigation, a tax administrator may: ask the taxpayer to submit documents necessary for the performance of a tax investigation or documents explaining sources of property acquisition and revenue generation and ask to substantiate them, also, it shall have the right to make copies, excerpts of those documents, mark them, give mandatory instructions to the taxpayer, access the taxpayer's territory, buildings, premises of the taxpayer in accordance with the procedures established in the Law on Tax Administration, conduct actual inspections, install meters and measuring devises, and, having established offenses subject to administrative liability, complete protocols of administrative offenses, etc.

A tax investigation may be performed in respect of both a taxpayer and a withholding agent.

A written notification shall be sent to a taxpayer on deficiencies and/or contradictions established during a tax investigation, laying down the essence of established deficiencies and/or contradictions, manner and deadline for the elimination thereof, which shall be no shorter than 10 days from the day of the delivery of a notification to the taxpayer.

If the taxpayer eliminates the established deficiencies and/or contradictions within the set period of time, it shall be exempted from the penalties provided for in Article 139 of the Law on Tax Administration (unless laws establish otherwise), however, this shall not impede the calculation of late payment interest. Also, a failure to eliminate deficiencies and/or contradictions shall form a basis for starting a tax inspection.


Article 135, 136, 137 of the Law on Tax Administration.

Order No. VA-108 of the Chief of the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania of 28 May 2004 "On the Approval of the Rules for Conducting a Tax Investigation, Form FR0687 of the Notification of Established Deficiencies and/or Contradictions and Form0688 of the Task of Visiting/ Controlling Activities of the Taxpayer".