Abstract:

The scale of value-added tax (VAT) fraud in the member states of the European Union (EU) is enormous. All EU member states have their own domestic supreme audit institutions (SAIs), which should play a key role in the anti-tax fraud system. Based on the case of Polish SAI, this original research study has shown that the SAI's combat against tax fraud was ineffective. SAI's measures have been not adapted to the scale of the problem of VAT fraud. This research aimed to identify and manage SAI's constraints in the fight against VAT fraud. Based on this research study, it was found there is the need to expand audit scope in the case of audits of anti-VAT fraud systems, as well as, modifying audit planning methodology.