CAF-2 · Chapter 19 · Question 15 of 15
If an authorized officer of Inland Revenue decides to draw samples of goods or raw materials during an audit to determine tax liability, what is the required procedure?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) C) A minimum quantity sufficient for examination must be taken against a proper receipt, giving the person in possession an opportunity to sign the sample.
Explanation
An authorized officer may take a minimum quantity of samples sufficient to enable a proper examination. The person in possession must be informed, given the opportunity to sign the representative samples, and the sample must be taken against a proper receipt.
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