Dubai: The provisions of the federal law mandates the Federal Tax Authority (FTA) with the legal right to perform a tax audit on any person to determine their compliance to the laws.
The FTA has the authority to audit at its office or the place of business of the person or any other place where they conduct business, store goods or keep records, in which case, the person must be given a notice of at least five business days.
While conducting a tax audit, the auditor may ask for original records or copies thereof, or take samples of the goods, equipment or other assets available at the tax person’s place of business. The tax audit will be conducted during the official working hours of the authority. The Director General may, by way of exception, issue a decision to conduct the audit outside regular hours if necessary.
The authority may also order a re-audit if new information surfaces that might impact the outcome of the tax audit. According to the Federal Tax Law, any person subject to a tax audit, as well as his tax agent or legal representative, must offer all required assistance to the tax auditor to perform his/her duties.
The law has granted the right to audited person to request the tax auditors to show their professional identification cards; obtain a copy of the tax audit notification; attend the auditing procedures that take place outside of the Authority’s headquarters; and obtain copies of any original paper or digital documents removed or obtained by the FTA during the audit.