• Tax audit procedures
• What is a personnal exam on individual tax position (“ESFP”)?
• What is an account audit?
• What is a tax audit on documentary evidence?
• What is a contradictory assessment of additional tax?
• What is an estimated assessment procedure?
• What is the tax prescription?
• What are the prescription delays?
• How long is a tax audit?
• I’m a director or a sharelholder of a company subject to tax adjustments: What are my risks?
• When do I have to pay the tax adjustments?
• What is the tax authority’s communication right?
• What is an irregular management action?
• What is law abuse? (art. L 64 du LPF)
• What are the tax authority information means and methods?
• What is the delay to bring an action to court?

An irregular management action loads the companys with expenses or losses, or deprives it from benefits without fair justification according to business goals.

The principle is that the director is judge of the results of his management and the tax authority is not allowed to decide what should be the best for a company.

Case law confirmed that the tax authority is not authorised to interfere within the management of the companies, and a director is never obliged to draw a maximum of profits from his company. These principles are closely linked with the free enterprise principles where the economic actors must be submitted to full management liberty as counterparts of their liability.

For example, a company is allowed, without critic, to finance an investment by loan (generating financial expenses) rather than by equity.

Unless the taxpayer is subject to an estimated assessment procedure or if the accounts are not considered as regular, the tax authority bears the burden to prove that a decision does not comply with the business interests.

The questionning of tax adjustments caused by irregular management actions must be documented and legally justified, taking into account the specificities of any company.