Tax adviser

What it means

A tax adviser is an individual on the list of the Slovak Chamber of Tax Advisers who has passed the professional exam and may give tax advice for a fee. They can represent clients before the tax administrator, prepare tax returns and assess transactions from a tax point of view.

The title is protected and regulated. A tax adviser is bound by confidentiality, must keep up professional training, follow the chamber’s code of ethics and hold professional indemnity insurance in case wrong advice causes a client loss.

Unlike an accountant, who keeps the records and prepares the statements, an adviser focuses mainly on assessment and planning: how to structure a transaction so that it is correct and efficient for tax, or how to proceed in a tax audit. In practice the two often work together.

How it works in practice

Before the tax administrator the adviser represents the client under a power of attorney notified to the tax office, most often electronically. The adviser then files returns for the client, deals with the office and takes part in local inquiries and audits.

On more complex questions, such as a reorganisation, the sale of a business or cross-border transactions, the adviser helps prepare a request for a binding ruling from the tax administrator. It gives the client certainty about how the office will treat the transaction before it goes ahead.

Our firm offers consultations according to how demanding the question is and brings in a tax adviser for tax matters beyond everyday bookkeeping. The client thus gets an answer from someone who is accountable for it.

What to watch out for

Beware of “tax optimisation” offers from people without a licence or insurance. Aggressive schemes promising zero tax are often treated as abuse at an audit, and the client bears the loss. An adviser’s licence can be checked on the chamber’s list.

The second mistake is turning to an adviser only after an audit has begun. Many problems could have been solved earlier with an amended return or a change of approach, and smaller penalties. When the business changes, asking in advance is cheaper.