On 31 August 2026, the National Revenue Administration (KAS) published its annual audit plan focusing on the protection and proper utilisation of public funds. The campaign prioritises high-risk areas including VAT carousel fraud, abuse of EU structural funds, and irregularities in public procurement contracts. KAS will deploy enhanced data analytics, cross-referencing taxpayer registers with banking transaction reports and EU grant databases to identify discrepancies. The legal basis derives from the Act on the National Revenue Administration and the Public Finance Act, empowering KAS to conduct unannounced inspections and request extensive documentation.
Key Takeaways
- Targeted Sectors and Entities: Audits will concentrate on construction, IT services, waste management, and entities receiving EU cohesion funding, with particular scrutiny on subcontractor chains and split-invoice schemes designed to artificially reduce VAT liabilities.
- Expanded Document Retention and Access Rights: KAS auditors may demand access to electronic accounting systems, ERP logs, and communication records for up to five years; non-cooperation triggers automatic penalty proceedings under the Tax Ordinance Act.
- Whistleblower and Anonymous Tip Integration: The administration has integrated a new secure reporting channel for anonymous tips on public fund misuse, with guaranteed protection for whistleblowers under the EU Whistleblower Directive transposition laws.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement