In St. Vincent and the Grenadines, our tax system is based on a self-assessment system.The self-assessment can be maintained only through vigilant and continuous inspection of returns.The primary purpose of the tax audit is to monitor and maintain the self-assessment system.It therefore plays an important role in the achievement of the objectives of the department which are to collect the taxes imposed by law through the encouragement of voluntary compliance and to maintain public confidence in the integrity of the tax system.While the prospect of being subjected to an audit is a strong inducement to voluntary compliance, particularly in view of penalties for gross negligence or wilful non-compliance, the personal contact afforded by an audit is an ideal vehicle for promoting an atmosphere in which taxpayers can realize that each is bearing his lawful share of the tax burden.
