Tax Inspectors Bring Cameras To Desk Audits

Tax inspectors are increasing the number of checks for companies that have declared significant tax deductions or expenses – and they come to photograph the company’s property. For example, inspectors in Moscow region use "photo-raids" if a company’s tax declaration claims a refund of VAT from the purchase of assets. In the Republic of Adygeya and in Yaroslavl Region, such photo-raids take place if company claims tax deductions in connection with the purchase of fixed assets. Tax inspectors explain that they are obligated to confirm the existence of the purchased object.

In Tver Region inspectors use such raids when a company claims tax deduction for an incomplete construction project. They have also been seen in Kostroma and Bryansk Regions, and in Dagestan, Buryatia and Perm Krais – when tax inspectors doubt the very existence of the company.