Tax certification means that a sworn financial auditor(Sworn-in CPA) carries out a tax audit of the company and certifies the tax returns.
The tax certification system significantly decreases any erroneous practices that may surface during an inspection by tax inspectors. In addition, although tax certification is not mandatory, companies having their tax returns certified by a Sworn-in CPA are considered as having been audited by the public authorities, and unless there is a serious claim for any form of wrong doing, their accounts are not audited by the tax inspectors.
The scope of tax certification can be summarized under three headings: fieldwork, tax certification, tax calculation and reporting. Tax certification services not only serve to decrease the risk of undergoing a tax inspection but also help detect and correct erroneous tax implementations at an early stage. In addition, an important added value created by tax certification services is the tax planning opportunities identified and brought to the attention of management during the audit.