Tax Audit
TaxAudit
Tax Audit Service In UAE
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Tax Audit UAE – Tax Audit
Services in Dubai, UAE
According to the UAE company’s’ law, all tax registered companies are legally bound to maintain their account books which can be audited by Dubai Govt approved audit firms. These audited reports are submitted to the board of directors of the company. Most free zone authorities in UAE now require mandatory submission of the audit reports. As UAE has now introduced VAT laws, all tax registered companies are legally bound to maintain supporting documents of all account books in a ready inspection state for the UAE Federal Tax Authority inspectors to check.
Rules and regulations
for the audit
Tax Audit Service In UAE
Tax Audit Service In UAE
When can the authority in
the UAE initiate a Tax Audit?
In case, this were to happen, the public prosecutor gives permission to the tax auditor to visit any premises. They can undertake inspection of all the financial and accounts related documents, all the assets on the premises as well as the premises itself for the purpose of re-audit.
Notification on
Tax Audit in the UAE
The Federal Tax Authority of Dubai usually intimates the registered tax entity through a notification to conduct the desired tax audit 5 business days prior to the expected start date. Certain exceptions are however made if auditor has reason to believe that prior notice would hamper conducting the audit, or they suspect evasion of tax. In which case no notice of tax audit will be served.
The notification generally elaborates on the reason as to why the audit assessment is being conducted, which tax is the audit related to, tax summary etc. The Federal decree empowers the auditor to enter any premises and close the business while it performs the audit for 72 hours without prior notice if,
Tax Audit Service In UAE
FTA has enough evidence and reason to believe that an instance of tax evasion is under scrutiny
FTA has reason to believe that by not closing the premises the audit activity will be hampered
Documents to be submitted
during a Tax Audit in the UAE
Tax Audit Service In UAE
The auditor can ask for any of the following documents while he performs it as he finds appropriate
Reports on the payroll
All tax invoices and related alternative documents related to goods or services received
List of all bank accounts
Records of all supplies and goods/services imported
All tax credit notes, and alternative documents received
Copies of legal docs e.g. MoMs, MoUs, Articles of incorporation etc.
All tax invoices and alternative documents issued
Tax registration numbers
Board minutes of meeting
General ledger
Trial balance
Copies of loans, leases, and material contracts etc.
VAT returns
All tax credit notes, and alternative documents issued
Records of goods and services that have been dispensed with or are consumed for matter NOT related to business and showing taxes paid against them
Records of goods and services purchased, and for which input tax is not deducted
Record of exported goods and services
Record of adjustments or corrections made to account or tax invoices
Details of goods imported to the state with customs’ declaration and supplier invoices
Penalties associated with
Tax Audit in the UAE
Details of types of penalties, their fines and some solutions can be studied in the following link.
Tax Audit Service In UAE
Tax Audit Service In UAE
Our role in
Tax Audit in the UAE
This helps them understand their company’s exposure to any noncompliance beforehand and allows them to understand the causes of such noncompliance and take proactive remedial measures and save later inconvenience.
We at ebs, deal with a multitude of varied businesses and assist them with their audit issues and manage their tax transactions ensuring total conformity with the VAT laws. As a result, we are able to offer practical solutions that help our valued clients with their compliance problems. We use client friendly audit methodology during the audit assignments by focusing on those areas which are categorized as high risk.
FAQ’s
A tax audit is an examination of your tax return to ensure that your deduction and income are accurate. You need auditing to ensure that the financial statements are presented fairly and comply with the generally accepted accounting principles. It promotes objectivity and consistency in financial reports and helps other outside parties to make sure that the reports are accurate and fair.
There can be many reasons to initiate a tax audit. For instance, if a company is unable to report all income on tax returns then a tax audit is required. If there are business losses or deductions that are questionable or unable to report the foreign accounts, then a tax audit is required.
There are a few documents that you need to have prepared for a tax audit. These include analyses conducted, audit plans, checklists, representation letters, confirmation letters, summaries of significant findings, etc.
Many people are concerned about the time period of conducting a tax audit. Commonly, the audit period should take no longer than five or six months. Sometimes with proper preparation auditing process can be done faster.
Internal Revenue Service (IRS) does the auditing by mail and also notify the taxpayer within seven months of filing. Mail audits are completed usually in three to six months, and it also depends on the situation of auditing.
If you receive a tax audit notice then do not panic. The notice you receive will have specific information about why your tax return is going to be examined. There will be a mention of what documents are required from you and how you will proceed.
First of all, be concerned with the companies or professionals who have to carry out your tax audit mandatorily. Prepare all the required documents for your audit and get good consultation about your auditing.
