Estimated Assessment — Why Is It Fatal for a Business?
The Tax Code grants the tax authority a powerful instrument — the “estimated assessment.” If a company’s accounting documentation is incomplete or unavailable, the auditor is authorized to calculate your liabilities based on data from other similar companies or through other indirect assessment methods.
This often results in the assessment of amounts significantly higher than the actual liabilities and may lead to the seizure of company accounts. In such circumstances, the business requires immediate legal action and the proper initiation of a tax dispute to challenge the legitimacy of the assessed amounts.
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