A Full Tax Certification Audit is a type of audit conducted to ensure the accurate determination of businesses’ annual income or corporate tax bases.

At Mali Yöntem, full tax certification audits are carried out throughout the year. In this way, potential errors and deficiencies can be identified and corrected during the year. The results of the completed fiscal year are reported to the Ministry of Treasury and Finance by the Certified Public Accountant (CPA) no later than the end of the sixth month of the following year.

As long as there is no denunciation or complaint regarding the relevant taxpayer, the Ministry of Treasury and Finance does not primarily initiate an additional audit based on the submitted Full Tax Certification Audit Report.

Full Tax Certification Audit is also an important tool for effective tax planning.

Is Full Tax Certification Audit Mandatory?

Pursuant to General Communiqué No. 4, taxpayers whose total assets exceeded TRY 6,999,180 and whose net sales exceeded TRY 13,994,210 in 2016 are required to have their 2017 tax returns certified and signed by a Certified Public Accountant (CPA).

If a decision is made to conduct a full tax certification audit, it is mandatory to execute a written contract with a CPA. This contract must be completed within the month of January. Tax returns certified by CPAs and the related financial statements are considered audited documents by authorized public officials (tax inspection authorities).
In addition, taxpayers who sign a full tax certification agreement may, in principle, benefit from VAT refunds based on the CPA certification report without any limitation.

Contracts to be executed in January (within the prescribed period) must be electronically submitted to the Internet Tax Office by the end of February, in accordance with Communiqué No. 1 related to Law No. 3568 (Official Gazette dated 06.02.2008, No. 26779). Furthermore, a copy of the relevant contract must be attached to the certification reports submitted by CPAs to the tax office.

As a result of reviewing the accounting records made in the statutory books and documents kept during the current fiscal year, it is examined whether the records have been posted to the correct accounts, whether they result in any tax loss, and erroneous records are corrected. In addition, the accuracy of monthly tax returns and declarations is verified.

The most important feature of our audit approach is the thorough analysis of our clients’ sectors and business activities before and during the audit process. Through this approach, we are able to provide our clients with constructive recommendations not only in accounting matters but also in management-related issues.

Mali Yöntem Certified Public Accountancy Inc. also ensures that:

The company’s activities are evaluated more effectively by focusing on risk-prone areas.

In addition to the audit report, a management recommendation report, prepared based on observations obtained during the audit process, adds value to the audit engagement and increases its return.

Continuous and regular communication is maintained with management throughout the audit process to avoid any unexpected issues at the conclusion of the audit.

Furthermore, sub-examinations are conducted on companies issuing invoices for goods and services purchased during the period to determine whether such invoices qualify as forged or misleading documents, whether the issuing entities are involved in such practices, and to prevent the company from facing any issues arising from the failure of sub-suppliers to fulfill their VAT obligations.

In the event of counter-audit requests, companies that have entered into a full tax certification agreement with a CPA may respond to such requests through CPAs in the form of information provision, in accordance with Communiqué No. 29.