In tax auditing, examination of books of accounts and other tax records of the tax registrant takes place. The goal of this process is to ensure that the tax registrant is compliant to the tax laws and to reduce illicit tax practices in the country.
Tax Audit in UAE is a matter of heated discussion in many circles inside the region. The complex taxation laws combined with the restrictions and the exemptions makes it necessary that only seasoned professionals handle the tax auditing services.
As per the federal decree law 36, in an event when the tax authority feels that the tax revenue is as at stake or the administrative and compliance burdens are at stake, tax auditing can be asked.
Not just auditing, even revised auditing can be asked if the tax registrant has made some changes to his policies or his business entity.
And when it’s decided that tax auditing will definitely takes place, the aforementioned decree gives the authority the power to appoint a tax auditor to pay a visit at the Tax registrant’s premises.
When the tax auditor pays a visit, it’s important that the tax registrant is ready to present the following documents:
If someone doesn’t comply with the tax laws and it’s found about during tax audit process, following are the penalties that they can face.
If you want to prevent the above penalties and appear legal and compliant to the Authorities, you should reach out to KRV Auditing.
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