Effective assessment and monitoring of risks associated with business partners
Carousel frauds have recently become a hot topic in Eastern Europe. Tax authorities investigate hundreds of cases and suspicious schemes also based on information received from the VAT control statements. Our internally developed solution enables to screen business partners in order to identify level of risk based on similar tests as run by the tax authorities. Screening is performed against the publicly available data and covers approximately 30 checks, among others also the following checks:
- VAT ID validation through VIES portal;
- Termination or suspension of the business activities and any other company related high-risk events;
- Register of unreliable VAT payers, not only in the moment of primary publishing but also historically. Moreover, it also checks secondary links with other companies in the register through an individual or the same headquarters address;
- Basic financial indicators if financial statements of the company are published;
- Risk factors regarding company representatives and shareholders (such as age, foreign address or municipal office address);
- Negative publicly available information about the company.
Input for the screening is a list of companies (e.g. suppliers). The outcome is the risk assessment of individual companies and overview of the key factors increasing the risk potential. Reports are signed with a timestamp so the results are fixed in a time. This solution allows to demonstrate what information was publicly available at that moment. This can be used as a defence file during any possible future tax audit. Such screenings can be done for many countries in the region like Czech Republic, Poland, Slovakia, Hungary etc.
The price of our solution is based on the number of suppliers and the frequency of the screening.
If you are interested or if you have any questions, please do not hesitate to contact me
for Czech Republic please contact Tomas Vlk, PricewaterhouseCoopers Česká republika s.r.o. on +420 737 718 281 or mailto:firstname.lastname@example.org
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