Role of the Tax Auditor on the Prevention of Tax Evasion in the Construction Sector in Colombia

Abstract

The role of the tax auditor is vital to prevent tax evasion because it is responsible for making prior and subsequent control in companies of the construction sector; furthermore, its findings enable passing an opinion on the reasonableness of the financial statements and generate trust between the different users of the information. Thus, this article took regulatory and theoretical models as a basis to answer the main research question: what is the role of tax auditing on the prevention of tax evasion in companies of the construction sector? The methodology aimed at associating variables found in the previous literature review, considering the role played by the tax audit as an institution of control and surveillance; its responsibilities in the identification, prevention of tax evasion, financial and operational risks, and its impact on transparency and business integrity as a central theme. The results address the definition of tax evasion and the consequences it brings to the country's economy, analyze the maneuvers used by taxpayers to avoid paying taxes that lead to this crime and, finally, highlight the importance of tax auditing in the detection of fraud and the evaluation of internal controls.