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;
- Verification of all Supplies and Purchases disclosed in the VAT Returns
- Verification of all Receipts and Payments in bank statement(s)
- Checking that no disallowed Input tax has been claimed
- 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% of tax amount + AED 3,000 to 5,000
- 30% of tax amount + AED 3,000 to 5,000
- 50% of tax amount + AED 3,000 to 5,000
- Availability of all Import record and its declaration in Returns
- Record of exports and declaration in Returns
- Availability of Profit and Loss account and Balance Sheet
- Proper filing of accounting record
- Availability of Inventory record and reconciliations
- Cash reconciliation
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