tax_audit_spectrum_audit

FTA TAX audit 2019

Make Your Business ready for FTA TAX Audit in 2019

It is of utmost important that business gets a Health Check of its accounting record before a formal notification for the Audit is received. It will be a smooth process for business with a perfect accounting record. However, lack of compliance can expose to high risk of penalties.

FTA will provide a 5 working day notice before visiting the business premises. Items to be verified before the notification arrives include;

  1. Verification of all Supplies and Purchases disclosed in the VAT Returns
  2. Verification of all Receipts and Payments in bank statement(s)
  3. Checking that no disallowed Input tax has been claimed
  4. Checking if there is a need to file a Voluntary Disclosure. If such Disclosure is required an not made in due time, penalties can be in range of;
  5. 5% of tax amount + AED 3,000 to 5,000
  6. 30% of tax amount + AED 3,000 to 5,000
  7. 50% of tax amount + AED 3,000 to 5,000
  8. Availability of all Import record and its declaration in Returns
  9. Record of exports and declaration in Returns
  10. Availability of Profit and Loss account and Balance Sheet
  11. Proper filing of accounting record
  12. Availability of Inventory record and reconciliations
  13. Cash reconciliation

Leave a Reply

Your email address will not be published.

*

WhatsApp us