The provisions of the newly issued federal law on taxation has authorized the Federal Tax Authority (FTA) with the legal right to perform a tax audit on any business to determine their compliance with the provisions of the relevant laws.
- It is the procedure undertaken by the Tax auditor from FTA to inspect the commercial records of the taxable business, to ascertain the compliance to the tax laws.
- At least a 5 day notice will be given prior to the Tax Audit (exemptions apply).
- Any Person subject to a Tax Audit, his Tax Agent or Legal Representative must facilitate and offer assistance to the Tax Auditor to enable him to perform his duties.
- Within 10 days of the end of tax audit, the Tax Auditor will share his final findings, the company might have to pay extra tax based on the result of the audit.
- FTA will use a risk based approach to select who to audit.
- The audit will usually take place at the persons place of business or the FTA office.
- In case of any suspicion of tax evasion, the FTA can close the place of business for up to 72 hours.
- The auditor may
* Request for original records
* Take samples of merchandise
* Mark assets, to indicate they have been audited
* Remove records, documents & samples
We, at msi Alnoman and Ravi, are qualified to assist you through every step for your business. Our thorough knowledge in this field is ideal to guide your business, minimizing risk, to benefit your business.
Stay posted to know more about other VAT rules.To find more information on VAT you can visit the following:–
- Ministry of Finance
- Introduction to VAT
- Understanding VAT
- What do we need to when VAT comes into effect?
- Special VAT rules
- Reverse Charge Mechanism
- Categories of VAT
- Administration of VAT -FTA
- Time of supply
- What is supply
- Challenge The FTA decision
- Filing Tax Return