Sep 6, 2022

Tax Indirect Methods Are Crucial for Effective Compliance Risk Management

We were happy to talk to Ms. Irnesa Hašimbegović from the Tax Administration of the Federation of Bosnia and Herzegovina. Ms. Hašimbegović shared her personal learning takeaways from our recent hybrid event that explored how to plan and conduct tax audits by using indirect audit methods.

“Indirect methods as a tool for determination of tax liabilities through an analysis of the taxpayer's financial affairs, utilizing information from a range of sources beyond the taxpayer's declaration and formal books and records, are very important for every country’s tax administration. The methodology of applying indirect methods in inspection differs from country to country, and that’s the reason why it was so important to participate in the event where every country could present their experience. Hearing about experiences from other countries, their legal regulations, pros and cons, and related problems helped all of us to understand the complexity of the procedures. 

The hybrid event on Strengthening Tax Auditors’ Capability: Indirect Audit Methods, delivered in April 2022, was the first event held face to face after the corona situation and it was great to speak with people in person. We all know that technology is important, and we were convinced of that during the corona pandemic when we had to work online, including seminars and various other work events. However, it’s inevitable to say that face-to-face conversations contribute to a better understanding of the topic – it is easier to really understand each other through a dose of gesticulation. So, I am extremely glad that after a long time in the lockdown I had the opportunity to talk to representatives of other countries and exchange experiences of good and bad practices. 

Some countries have really good legal regulations on indirect methods and some of them don’t, including the Federation of Bosnia and Herzegovina. I think that the information on good practices gained at this event will contribute to a better understanding of the importance of indirect methods, which I shared also with my colleagues. Although we use some of the indirect methods in our work, as far as our legislation allows, it is necessary to expand it and the experience I gained at this event can contribute to that.

The CEF once again proved to be an excellent organizer who made the event not only useful but also interesting and enjoyable. In a pleasant environment, with excellent staff, you feel free and motivated to participate and to contribute to the best possible conclusions of the topic. I definitely hope to see you again soon.”