A mileage log in a tax inspection – how to prepare
Is an inspection coming, or do you simply want to be sure? We advise how a mileage log stands up in a tax inspection and how to make preparation far easier. The framing follows Slovak tax practice; check the rules in your own country.
What the authority checks in a mileage log
When assessing a mileage log in a tax inspection, the tax administrator looks at whether the records contain all the required details and whether they are internally consistent. It checks above all that the odometer reading agrees with the sum of the journeys and that the purpose of trips is demonstrable.
The link to other documents also matters – refuelling, servicing, invoices and contracts. If the data follows logically from one to the next, the records look credible.
Which documents to have ready
Alongside the mileage log itself, have ready receipts for fuel purchases, servicing records and documents supporting the purpose of trips, such as orders or meeting notes.
Agreement between the distances in the mileage log and refuelling and servicing intervals is one of the first indicators a tax inspection examines. Discrepancies prompt further questions.
Common grounds for objection
The most frequent objections concern an odometer mismatch, a vague purpose such as "business trip", and journeys written up afterwards. Undifferentiated private use of the vehicle is also a problem.
Such shortcomings call into question the claimed costs for fuel, depreciation and repairs. They are prevented by thorough, continuous record-keeping.
How continuous automatic recording helps
An automatic mileage log from GPS records journeys continuously with the position updated every 60 seconds while driving, so distances and times match reality and nothing has to be written up from memory.
A uniform, consistent record across the whole period is exactly what an inspection appreciates. It reduces the scope for both discrepancies and subjective doubt.
The audit trail as an argument for credibility
SaveTrack keeps an audit trail of edits – every change to a record is attributed to who made it and when. Unlike paper, which can be rewritten unnoticed, the records thus demonstrate their own integrity.
The data is moreover stored encrypted, with the customer's own key and keys kept separately, at bank level and in line with GDPR.
Practical preparation and the accountant's role
Before an inspection, go through the records, add purposes to business journeys and check that no journeys remain Unclassified. Export the overview to PDF or XLS.
Always discuss the assessment of tax implications and communication with the tax administrator with an accountant who knows the specifics of your business.
FAQ
What does a tax inspection look at most in a mileage log?
The completeness of the required details and the internal consistency of the data, above all the odometer reading against the sum of the journeys and the demonstrability of trip purposes. It also checks the link to refuelling and servicing.
Which documents should I have ready alongside the mileage log?
Receipts for fuel purchases, servicing records and documents supporting the purpose of trips, such as orders or meeting notes. The distances should follow logically from the refuelling and servicing.
How will an automatic mileage log help me in an inspection?
It provides a continuous, consistent record with precise distances and times. The audit trail of edits additionally demonstrates the integrity of the records, which increases their credibility.
What most often prompts objections during an inspection?
An odometer mismatch, an overly general purpose of journey and journeys written up afterwards. Also undifferentiated private use of the vehicle. Continuous record-keeping prevents these.
Should I prepare for a tax inspection on my own?
Go through and export the records yourself, but always discuss the assessment of tax implications and communication with the tax administrator with your accountant.
Be ready for an inspection in advance
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