What is an audit in UAE?
When the government assesses whether the company is fulfilling all the responsibilities of being a taxable entity, it is referred to as the tax audit. The federal tax authority is responsible for carrying out this audit. The basic purpose is to ensure that the company is paying all the legal liabilities and taxes or not. Also, the FTA makes sure that the company has completed all the requirements of registration or not. There are a lot of minor and major things that are to be taken care of while reporting the audit. A minor mistake may be very dangerous for companies sometimes. Click here more information about Tax Audit.
The procedure of tax audit in the UAE
- The main reason behind conducting the audit is to check the tax returns and other major details of the company. A specific reason is not required for conducting the company’s audit. Before conducting the audit, the authorities send a notice to the company. The notice is sent 5 days before the due date of conducting the audit. All the details are mentioned in the sent notice.
- When the notice reaches the company, it must act on it at the scheduled time and date. This is important to begin the process of audit. The auditors may ask for different details of the company including the company records, original as well as copies. They may also take some of the goods or assets of the company as samples for checking. They take samples to make sure that the company is dealing with the stuff in the right way and the materials being used are authentic and safe to use.
- If you are being audited, you have all the rights to ask for the credentials of the professionals that come for the audit. The company can ask for their professional ID cards and more to determine the authority they possess.
- The audit will be conducted within the working hours but in some of the cases, the audit may also be carried out other than the working hours. This will take place in an exceptional case.
- When the company is being audited, the tax consultants and other legal representatives of the company would be right there. Their presence will help the company in making the things clearer than ever.
- If the officials find anything suspicious while conducting the audit, they may also ask for the re-audit so that the company may be analysed further. The company that is under observation can also ask for the documents and notification copies s that they may present the documents to show that it has been audited in the past outside that of the official places.
Audit in UAE is a very crucial task to handle. It might take longer to complete the audit reports but it is the duty of the company to be very considerate about it. That is why a lot of companies conduct the audit by themselves as well before the audit from the government officials. This saves them from unnecessary penalties and fines which may harm the reputation of their company.