Most companies discover their records have a problem when an inspection begins, which is the moment when remediation costs the most and the options are fewest. A health check reverses that order.
Background
Accounting records and tax filings are two systems that must agree with each other. In practice they drift apart over time, as accounting staff change, as transactions are treated inconsistently, or as the business grows without the process being updated.
A health check is not a statutory audit. An audit expresses an opinion on whether the financial statements give a true and fair view under accounting standards. A tax health check asks a different question: where is this company exposed to assessment, and what should be fixed first.
The review has most value before an annual finalisation, before a share transfer, before changing accounting provider, or when there is reason to think the company may fall within an inspection plan.
Common challenges
- No independent view of your own exposure. The company operates for years without anyone assessing the records, until an inspection decision arrives.
- Ledger and returns that no longer agree. Differences accumulated across periods are hard to trace back and are exactly the indicator that prompts a wider review.
- Incomplete handover between accountants. A departing accountant leaves without proper documentation and treatment of transactions changes between periods.
- Large costs with thin support. High value items such as management fees to the parent, outsourced services and marketing spend often lack the documentation to demonstrate they were incurred for the business.
- Discovery too late to act. Many errors remain correctable within the amendment window but become uncorrectable once an inspection starts.
How TrustlineAX helps
- An objective assessment of where you stand. Ledger tested against source documents, with treatment checked for consistency across periods.
- Ledger to filings reconciled. Every difference between the accounting records and what was declared traced to its cause.
- Deductibility risk quantified. Large and sensitive expense categories reviewed, with an estimate of what could be disallowed.
- Specialist exposures checked. Foreign contractor tax, related party transactions and expatriate personal income tax reviewed specifically, as these are the three most commonly missed.
- A report you can act on. Findings set out with risk rating, estimated financial impact and a concrete remediation option for each.
- Support to fix what was found. We can carry out the remediation, from collecting evidence to filing amended returns where the deadline permits.
How we work
- Scope agreement. We agree which periods and areas to review based on what you need the review for.
- Data collection and testing. Records, filings and evidence reviewed and reconciled in detail.
- Focused testing of risk areas. Deeper work on large expenses, related party dealings and specialist tax obligations.
- Findings report. Results presented in priority order with a remediation option for each item.
- Remediation planning. We work with you to decide what to fix now and what to monitor.
Frequently asked questions
How is this different from an audit?
An independent audit gives an opinion on the financial statements under accounting standards and satisfies a statutory obligation. A health check assesses exposure to tax assessment and your ability to defend positions under inspection. They answer different questions and do not replace one another.
When is the best time to do it?
Before the annual finalisation is most useful, since evidence can still be collected and declarations amended. It is also worth doing before a share transfer, before changing accounting provider, or after significant turnover in the accounting team.
How long does it take?
It depends on the number of periods and transaction volume. A mid-sized company with reasonably complete records is typically a matter of weeks; a company with substantial backlog takes longer.
Will the tax authority see the findings?
No. This is an internal engagement between your company and us. The report is provided to you and there is no obligation to submit it to any authority.