Tax auditing is a seriesl of actions to carry out tax regulation from collecting data, analysis, and making reports objectively and professionally base on auditing standards, with the aim to test taxpayer compliance in carrying out tax rights and obligations.

Tax auditing is carried out by Tax Officer called Tax Auditor. Tax Auditor must have competency namely accountancy, economics, law etc. Tax Auditor must have integrity and comply with code of ethics . Tax Auditor must use name tag and bring an assignment letter.

The Taxpayers beeing examined are as follows:

1.  Not or less in paying taxes;

2.  Not reporting transaction data and asset data correctly.

3.  Taxpayers have made tax deductions but they have not deposited them into the state treasury.

Before audited, Taxpayers are given warning or reminding about their tax obligations.  They are given a letter requesting data or information related to tax obligation. If they do not respond properly and correctly according to tax law, they are proposed to be exmined.

The regulations relating to tax audits are as follows:

1.  Tax law

2.  Government Regulations

3.  Regulations of Minister of Finance 

This regulations must be complied with both tax officials and taxpayer without exception.

The results of auditing is Notice of Tax Assesment are as follows:

1.  Notice of Nil Tax Assessment

2.  Notice of Tax Underpayment Assessment

3.  Notice of Tax Overpayment Assessment

If the amount of tax paid into the state treasury is still less than the amount of tax that should be paid, a Notice of Tax Underpayment Assessment will be issued.