Tax Audit Services
Registered Tax Auditing Services in UAE
Tax audit services involve a detailed examination and verification of a business’s financial and tax records by the Federal Tax Authority (FTA) to ensure compliance with tax laws and regulations. It is a crucial process that helps identify any discrepancies or non-compliance and allows businesses to rectify errors and ensure accurate reporting.
Tax Audit Procedure by the Federal Tax Authority in UAE
- Selection: The FTA chooses the businesses for tax audits based on factors that measure the risk of non-compliance. These can be the type and size of transactions, the industry standards, the history of compliance, and the signs of non-compliance.
- Notification: The FTA informs the businesses about the tax audit by sending a formal notification that includes the audit period and the information and documents needed for the audit. It arrives at least five working days before the planned date of the audit unless there are special reasons.
Required Documents for a Tax Audit in the UAE
- Financial statements and reports
- Tax returns and related attachments
- General ledgers and journals
- Sales and purchase invoices and receipts
- Payroll records and slips
- Contracts and agreements
- Bank statements and reconciliations
- Customs documentation and declarations
- Documents and tax credit notes received
- Records of non-business use and tax paid
- Records of input tax not claimed
Authority and Privileges of Tax Auditors in the UAE
- Access to business premises, records, and documents
- Authority to request additional information or clarification
- Interviewing employees and conducting inspections
- Collecting samples and taking photographs
- Sealing and confiscation of records if necessary
Key Areas Reviewed During a Tax Audit in the UAE
- Accuracy and completeness of tax returns
- Proper recording and documentation of transactions
- Reconciliation of financial statements and tax returns
- Compliance with tax registration and filing requirements
- Appropriate application of tax exemptions, deductions, and credits
- Adequate record-keeping practices with proper accounting software
Notifying Businesses about Tax Audit Results in the UAE
As per Article 17 of the Tax Procedures Law, the FTA issues a notification within 10 business days upon completion of the tax audit.
It outlines the audit findings and any adjustments or penalties that may be applicable. Your business will have access to the documents and data that the FTA used to asses due tax.
The FTA allows a specific timeframe for businesses to respond and rectify any identified issues or discrepancies.
How Reflechir Helps You During Tax Audit in the UAE
Tax audits can be an intimidating and overwhelming experience for businesses. This is why Reflechir always stands by you to give you valuable help throughout the tax audit process, including:
- Pre-audit review: We conduct a thorough review of your financial and tax records before the audit. So we can identify any potential areas of concern and ensure your business is ready for the tax audit.
- Documentation support: We help you gather and organize the required documents and information for the tax audit. This makes the audit quick and easy as your documents are accurate, complete, and in compliance with the FTA's requirements.
- Representation: Our team acts as your representative during the tax audit. We'll engage with the FTA on your behalf, where we'll address inquiries, and provide explanations or clarifications.
- Compliance guidance: Experts at Reflechir go through your company history and financial data and guide you to put in place proper accounting practices. We also find out specific strategies to optimize your tax position.
Contact us today to discuss your tax audit requirements and how we can assist you in achieving your compliance goals.
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- Taxation
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