The FTA’s approach to corporate tax auditing
The FTA is taking a risk-based approach to corporate tax auditing, which means that businesses with a higher risk of non-compliance are more likely to be audited. The FTA has identified a number of factors that may increase a business’s risk of non-compliance, including:
- The size and complexity of the business
- The industry in which the business operates
- The business’s track record of tax compliance
- Any changes to the business’s tax structure or operations
How the FTA selects businesses for audit
The FTA selects businesses for audit using a variety of methods, including:
- Data analysis: The FTA uses data analytics to identify businesses that may be at risk of non-compliance.
- Risk profiling: The FTA profiles businesses based on their risk factors and selects businesses for audit based on their risk rating.
- Targeted audits: The FTA may also conduct targeted audits of businesses in specific industries or that are involved in specific transactions.
What to expect during a corporate tax audit
The FTA typically provides at least 10 business days’ notice before conducting an audit. During the audit, the FTA will review the taxpayer’s financial records and documentation to ensure that they are in compliance with the UAE Corporate Tax Law.
The FTA may also conduct interviews with the taxpayer’s employees and other stakeholders. If the FTA finds any discrepancies, they may ask the taxpayer for additional information or documentation.
How to prepare for a corporate tax audit
There are a number of things that businesses can do to prepare for a corporate tax audit, including:
- Keep accurate and up-to-date financial records.
- Prepare tax returns in accordance with the UAE Corporate Tax Law.
- Implement tax compliance policies and procedures.
- Train employees on the UAE Corporate Tax Law and on tax compliance best practices.
How AM Audit, an FTA-approved company, can help with corporate tax auditing
AM Audit is a leading FTA-approved company that provides a comprehensive range of corporate tax auditing services. We can help businesses at every stage of the auditing process, from pre-audit preparation to post-audit support.
Pre-audit preparation
Our pre-audit preparation services include:
- Reviewing the client’s financial records and documentation to identify any potential areas of risk. This includes reviewing the client’s tax returns, financial statements, and other relevant documents to identify any areas where the client may be at risk of non-compliance with the UAE Corporate Tax Law.
- Advising the client on how to mitigate any risks identified. Once we have identified any potential risks, we will advise the client on how to mitigate those risks. This may involve providing the client with guidance on how to correct any errors or omissions in their financial records, or on how to implement new tax compliance policies and procedures.
- Assisting the client in preparing for the audit interview with the FTA. We will help the client to prepare for the audit interview by providing them with information on the FTA’s auditing procedures and by helping them to develop responses to any questions that the FTA may ask.
Audit representation
We will represent the client during the audit interview with the FTA and answer any questions that the FTA may have. We will also negotiate with the FTA on the client’s behalf on any tax disputes.
During the audit interview, we will represent the client’s interests and ensure that the FTA’s audit is conducted in a fair and reasonable manner. We will also work with the FTA to resolve any tax disputes that may arise.
Post-audit support
Our post-audit support services include:
- Helping the client to implement the FTA’s recommendations for corrective action. If the FTA identifies any areas where the client needs to take corrective action, we will help the client to implement those recommendations. This may involve helping the client to amend their tax returns, to pay any outstanding taxes, or to implement new tax compliance policies and procedures.
- Advising the client on how to avoid any future tax penalties. We will advise the client on how to avoid any future tax penalties by ensuring that they are in compliance with the UAE Corporate Tax Law. This may involve providing the client with training on the UAE Corporate Tax Law or by helping them to develop and implement tax compliance policies and procedures.
- Providing the client with training on the UAE Corporate Tax Law and on tax compliance best practices. We can provide the client with training on the UAE Corporate Tax Law and on tax compliance best practices. This training will help the client to understand their tax obligations and to ensure that they are in compliance with the law.
Specialized services
In addition to the general services listed above, AM Audit also offers a number of specialized services tailored to the needs of specific industries or clients with complex tax situations. For example, we offer services in the following areas:
- Transfer pricing: We can help businesses with all aspects of transfer pricing, including developing and implementing transfer pricing policies, negotiating transfer pricing agreements with related parties, and preparing transfer pricing documentation.
- International taxation: We can help businesses with all aspects of international taxation, including cross-border transactions, tax treaties, and foreign tax credits.
- Tax accounting software: We can help businesses to select and implement the right tax accounting software for their needs. We can also provide training on how to use the software to ensure that tax returns are accurate and complete.
- Tax compliance training: We can provide tax compliance training to employees on the UAE Corporate Tax Law and on tax compliance best practices. This training will help employees to understand their tax obligations and to ensure that the business is in compliance with the law.
Conclusion
AM Audit is a team of experienced and qualified tax professionals who are committed to providing our clients with the highest quality services. We have a deep understanding of the UAE Corporate Tax Law and the FTA’s auditing procedures. We also have a proven track record of success in helping our clients to avoid tax penalties and to ensure that they are in compliance with the law.
If you are looking for an FTA-approved company to help you with your corporate tax auditing needs, please contact AM Audit today. We would be happy to discuss your specific requirements and provide you with a free consultation.
