Why does the IRD require non-operating companies to submit tax returns with an audit report?

Increase transparency and compliance: Requiring non-operating companies to submit audit reports may be to ensure compliance with tax regulations and to improve the accuracy and transparency of the company's financial reporting. Audit reports can help the tax authority understand the financial condition of the company to ensure its proper payment of taxes.

Prevent tax evasion and money laundering: Non-operating companies may be used as tools for tax evasion and money laundering. Requiring the submission of audit reports can help the tax authority examine the company's fund flow and identify possible illegal activities.

Improve data completeness and reliability: The submission of audit reports can help the tax authority collect more complete and reliable data for more effective analysis and research on the impact of tax policies.

Encourage company closure or resumption of operation: Imposing stricter tax and reporting requirements on non-operating companies may encourage companies to voluntarily close or seek to resume operations. This helps to clean up zombie companies in the market and improve overall economic vitality.