Eight out of ten companies consider it is important to benefit from advisory services during tax raids

A survey commissioned by Nowium, a major provider of integrated fiscal and legal consulting services, revealed that 82% of companies see advice during tax raids as being important or very important. However, only 53% of companies actally employ such services during inspections. Company representatives consider the time and resources allocated as the main source of concern during these periods.

A tax raid may prove to be a major event in the activity of a company, involving significant financial risks. With a proper approach, companies may avoid the costs that a tax raid may generate and make their financial activity more efficient. The Nowium survey shows that 54% of companies are willing to invest more in professional assistance for tax raids, a trend emphasized among CFOs (80% vs. 54% overall) and among companies with more than 150 employees (67% vs. 54% overall).

“Companies with a mature structure and well-organized financial departments, correctly evaluate the level of preparation in the case of raids and audits and, quite often, request specialized advice. It is gratifying to note that more and more entrepreneurs and small businesses have the maturity to recognize that they need help in case of possible ta raids.” says Oana Nicorescu, Nowium Managing Partner.

When it comes to the relationship with authorities during tax raids, more than half of the companies in Romania (54%) are satisfied. In the case of companies with over 150 employees, the level of satisfaction is higher – 72%.

Among the consulting services requested by companies, the most important are recurring accounting and fiscal assistance, as well as legal and tax advice upon request. The preferred services vary according to the position held by respondents and company size. Thus, small companies opt for accounting assistance and fiscal planning, and large companies opt for the full range of advisory services, fiscal and legal.

The survey also shows that the main concerns of companies during tax raids are related to time and resources consumed, followed by risk of penalties, relationship with fiscal authorities and lack of knowledge when it comes to procedures.

The survey was conducted on a sample of 103 respondents from a diverse range of industries. Positions held by respondents are Financial Director, Director/Manager, Legal Director, General Director, or Chief Accountant.