Tax Audits in UAE - Call us [phone]

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 Farahat Co

• WhatsApp (Messaging Only) 971 52
  6922588WhatsApp Phone 971 55
  4828368Landline 971 4 2500251on Tax Audits in
  UAE

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Complete Guide on Tax Audits in UAE

• The UAE Federal Tax Authority or FTA administers
  the tax laws, as well as various tax benefit
  programs in the country. An audit is a crucial
  part of FTAs range of activities which are aimed
  at ensuring the tax system remains fair for all
  taxable entities. With a tax audit in UAE, an FTA
  officer will be sent to your office or business
  premises to closely examine company books and
  records. The officer will confirm whether or not
  your business is fulfilling all of its tax
  obligations, receiving the correct amounts in
  refunds and benefits, and following the tax
  legislation correctly. 
• Businesses in UAE are to be in full compliance
  with tax laws. The auditing process of the FTA
  helps taxpayers in better understanding and
  meeting their obligations, and help maintain
  public confidence with the integrity and fairness
  of UAEs tax system. 
•  If you have been chosen for a surprise tax
  audit by the FTA or you want to make sure you are
  prepared should your business be scheduled for a
  tax audit in UAE, the information in this article
  will help you get started on your preparations.

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Why does a business get scheduled for a tax audit
in UAE?

•  The FTA chooses to schedule a tax audit in UAE
  for a particular business based on their risk
  assessment. This assessment examines several
  different factors, including frequency and/or
  likelihood of errors in the filing of tax returns
  in UAE, and presence of indications of company
  non-compliance, especially to new tax
  obligations. Local tax authorities also look at
  information youve filed in your tax returns,
  then compare the information to similar returns
  of businesses in the same industry as you. 
• You should know 6 Things to Remember to Avoid a
  Business Tax Audit

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How will I know if Im scheduled for a tax audit
in UAE?

•  An official or licensed auditor from the FTA
  will send you a notification. This can be a phone
  call, e-mail, and/or written notice. Prior to the
  commencement of the tax audit in UAE, you will be
  given crucial details such as the time, location,
  and date of the audit. Normally, the audit will
  take place within your office or place of
  business. It can also be in the office of your
  representative, if you chose to get
  representation by a reputable audit firm in
  Dubai, UAE. 
• Upon arrival, the auditor will present valid
  identification documents to you, then begin the
  audit process. On-site tax audits in UAE often
  allow questions of the officer to be addressed
  immediately in order to minimize delays and
  interruption to your business operations. 
•  Note an audit in UAE thats performed by the
  local tax authorities will involve the submission
  of certain records. Youll be given a detailed
  receipt for the documents that are required. 
• You should read A Complete Guide on Audits and
  the Quarterly VAT Return

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What is examined during a tax audit in UAE?

•  A tax auditor in UAE will check information that
  are in company books and records, including the
  following
• Business records e.g. invoices, bank statements,
  rental records, contracts, receipts, journals,
  and ledgers
• Information thats already available to the FTA
  e.g. property details, filed tax returns 
• Personal records e.g. mortgage documents, credit
  card statements, and bank statements of company
  directors 
• Adjustments that are made by the accountant or
  bookkeeper of the company for taxation purposes 
• During an audit, an auditor in Dubai can find
  issues. When this happens, the officer will
  discuss each issue with you. Concerns can also be
  raised with the auditor should you have any.

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After an auditor sent by the FTA examines your
company records, any of these things may happen

• Correct assessment  this is if the auditor in
  UAE finds that your assessments are all accurate
  and nothing has to be performed as correction.
  You will get a completion letter as notification
  that the tax audit has closed. 
• Tax refund or tax payment  should the auditor in
  Dubai, UAE finds your return to be erroneous and
  is in need of reassessment, it means youll be
  entitled to tax refunds or youll have to settle
  the tax that you owe. Youll receive a formal
  proposal letter which explains the reasoning
  behind the reassessment. 
• If you dont agree with the FTAs proposal, it is
  best that you employ an audit firm in Dubai, UAE
  to contact the tax authorities and explain why
  youre sure that theres been a problem with the
  issuance of a reassessment. The audit firm in
  Dubai will compile the supporting documents and
  file them with the appeal. You will also get
  assistance in considering your explanations, as
  well as responding to questions and inquiries the
  FTA has on the proposal.

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How long is a tax audit in UAE?

• The duration of a tax audit in UAE will depend on
  several factors, including the state of your
  company records, scope of tax audit, potential
  delays because of missing records, and
  consultation with other FTA specialists. 
• Good records and assistance of an audit firm in
  Dubai will reduce the amount of time your
  business has to allocate for a tax audit in UAE.
  To know more, call us here in Farahat Co today!