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    Tax Audit

    What is a Tax Audit?

    Tax Audit in Dubai is among the compliance checks that are used to determine if a person’s tax liability is true by looking over various documents kept by the taxpayer. It’s basically an assessment by the government of a business’s obligations as a tax-paying entity. The government also determines the company’s compliance with adhering to certain obligations applicable to their business according to these tax regulations (VAT Laws, Excise Tax Law, etc.).

    The type of audit performed through FTA to assure that all tax obligations are paid. FTA in order to assure that each obligation is paid and every tax owed is paid and handed over to the government within the deadline set out.

    Tax audit UAE can be conducted in the taxpayer’s office place of business, also known as a “field tax audit’, or in the office of FTA. In general, prior notice of the audit is provided by the taxpayer.

    Tax Audit

    Tax Audit Services in Dubai, UAE

    In accordance with Tax Procedures Law No.7. A tax audit is an action carried out by the FTA to review the business records or the data of tax-paying individuals who conduct trade in the UAE. The FTA conducts a thorough audit of a tax-paying person to verify that the taxable person is complying in accordance with UAE VAT Law and the Tax Procedures Law. When conducting an audit of tax compliance, The FTA ensures that the taxable person has complied with all the tax obligations due to him or her and that any taxes due are collected and remitted to the government in the time frame stipulated. Post-audit and pre-audit benefit is offered by tax professionals and tax audit firms in Dubai who are registered in the Federal Tax Authority in the UAE to warrant tax compliance. Avoid tax professionals who aren't accredited by the FTA.

    audit.ae are a registered VAT consulting company that help in providing Tax Auditing services in Dubai and the UAE. We are available to add you with tax-related guidance as well as tax audit services dubai.

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    Tax Audit

    Process of TAX Audit by the Federal Tax Authority

    Process of TAX Audit by the Federal Tax Authority

    The individuals entrusted to the FTA are charged with conducting tax audits within the UAE. Tax auditors from the FTA will review tax returns as well as other relevant information when conducting tax audits within the UAE. In accordance with the Tax Procedures Law, the FTA can conduct a tax audit at any time.

    Although the FTA does not require a specific justification for conducting tax audits within the UAE however, the Authority typically sends out a notice to the taxpayer or company within five business days prior to the date scheduled alike to the Article 17 of Tax Procedures Law. In accordance with Article 19 of the Tax Procedures Law the tax audit is usually conducted during the normal operating hours for the FTA. However, the FTA Director-General is able to authorize tax audits outside of the Authority’s hours of operation if there is an exceptional circumstance.

    The tax procedure is governed by law and require the company along with their legal representatives as well as tax agents located in Dubai, UAE to help in providing any assistance possible to FTA auditing tax. Tax auditor dubai may request a re-audit in order to spot any unusual or suspicious information in their tax audit. To assure compliance, businesses can consult authorized tax auditors in Dubai, UAE.

    Tax Audit

    Records to be Kept for Tax Audits in the UAE

    Taxpaying entities must keep certain records in order to aid an audit of their tax records. Section (78) of the Federal Law on Valuation Added Tax mandates the tax registered entities to maintain these records, and submit these to tax auditors at the audit:

    1

    Record of all supplies and imports

    2

    Tax invoices as well as documents for receiving goods or services

    3

    All tax credit note and other documents received

    4

    All tax invoices and forms are issued

    5

    Record of the goods and services which were disposed of for reasons that were not related to business and records of tax payments to the same

    6

    Record that document Goods and Services purchased and in where it was determined that the Input Tax wasn't removed

    7

    Documents of exports Goods and Services

    8

    Documents of corrections or adjustments made to tax invoices or accounts

    9

    The details of the goods imported, together with Customs declarations and Supplier invoices

    Tax Audit

    Notification of tax audit in UAE

    The FTA will inform the companies that are subject of Tax Audit about the final payoff of the Tax Audit within 10 business days after the conclusion of the audit, as stipulated in the provisions of Article 17 of the Tax procedures Law. The companies that were affected by the tax audits in the UAE can view or access the records and information upon which the FTA has based its decision on due Tax. The right to view and obtain documents for business is for sure by Article 17 of the Tax Procedures Law.

    Tax Audit

    The Penalties Associated with Tax Audit Dubai, UAE

    Failure to comply with tax laws is likely to be a cause for penalties. In the case of tax violations, the Ministry of Finance (MOF) has issued a series of penalties for those who are found to be in violation. The following are among them:

    1. Failure to maintain financial records AED 10,000
    2. Incorrect submission of a taxpayer's tax returns by the registered holder AED 3000
    3. Repeatedly submitting a false tax return - AED5,000
    4. Inability of the individual who is conducting business to help support the tax auditing work of a Tax Auditor AED 20,000
    5. Inability of a taxpayer to fill out a registration application within the time period stipulated in the tax law AED 20000

    The violations of tax laws could also result in the imprisonment of the signatory authorized to sign and could be viewed as an offense that is criminal.

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    Tax Audit

    Preparation for Tax Audit in Dubai, UAE

    Documents Required For External Audit in Dubai, UAE

    If it is the case that FTA chooses to conduct an audit of your business A tax professional is always able to benefit to prepare ahead. They can prepare all your reports and documents in order to be compliant with UAE VAT regulations. Tax experts can benefit you by following the steps:

    System Assessment

    If companies are in the process of planning for tax audits in the UAE Tax consultants have to examine their accounting systems to assure accuracy. They investigate in detail whether every department is equipped with the most up-to-date and most current accounting software to keep track of data in the formats that are required by the VAT Audit Assistance. Our team is responsible for ensuring that every financial report and transaction is in compliance with national laws. System reviews warrant that transactions recorded are accurate and consistent.

    Reviewing Tax Calculations

    Tax assessment is mandatory in the preparation of tax accounts to be audited for VAT in the UAE. To assure that they are in compliance with UAE VAT laws, tax advisors warrant that the company correctly determines input and output taxes. They also assist with the preparation of documentation for the standard and zero-rated supply of services and goods.

    Reviewing Tax Payments

    It is important to be sure to pay the proper amount of tax. Tax experts will help you make your tax payments to the government in time, without missing the deadline.

    Tax Audit

    audit.ae- Our Role in Tax Audits in UAE

    Tax audits are often regarded as to be a neglected area and is not well understood by clients of the UAE region. Therefore, it is essential to educate businesses to its vital importance, but also recommended that all businesses undergo a pre-audit assessment of their businesses in order to know what they are doing.

    This helps them comprehend the company's risk of non-compliance before it happens and enables them to comprehend the root causes behind non-compliance and to take appropriate remedial steps to avoid any inconvenience later.

    audit.ae work with a variety of companies and help clients with auditing issues and also manage their tax affairs in complete compliance with VAT laws. We can provide practical solutions to benefit our clients in overcoming their compliance issues. We employ a client-friendly auditing methods during audits, paying attention to areas that are classified as risky.

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    Internal Audit

    Frequently Asked Questions

    Answers to your most common queries, conveniently compiled in one place.

    How do I know if I need a tax audit? And what is the reason I should have one?

    Tax audits are an inspection of your tax returns to warrant that the deductions and income are true. Auditing is required to guarantee that your reports are prepared in a fair manner and conform to generally accepted accounting standards. It helps to warrant consistency and objectivity in financial reports, and also assists other external parties to ensure that the financial audit reports are reliable and fair.

    There are many reasons to conduct an audit of taxation. For example, when a business is not able to declare the entire income earned on tax returns, then an audit of tax returns is needed. If there are losses in the business or deducts which are not substantiated or are not able to report foreign accounts, the tax audit is necessary.

    A lot of people are worried about the duration of conducting an audit of their tax records. The typical audit time is not more than 5 or 6 months. With proper preparation, the auditing processes can be carried out more quickly.

    There are some documents you must be prepared in case of a tax audit. These include analysis reports and audit plans forms of documentation, checklists confirmation letters, summaries of important results, etc.