Tax Audit Service In UAE
The auditor can ask for any of the following documents while he performs it as he finds appropriate
A tax audit is an examination of your tax return to ensure that your deduction and income are accurate. You need auditing to ensure that the financial statements are presented fairly and comply with the generally accepted accounting principles. It promotes objectivity and consistency in financial reports and helps other outside parties to make sure that the reports are accurate and fair.
There can be many reasons to initiate a tax audit. For instance, if a company is unable to report all income on tax returns then a tax audit is required. If there are business losses or deductions that are questionable or unable to report the foreign accounts, then a tax audit is required.
There are a few documents that you need to have prepared for a tax audit. These include analyses conducted, audit plans, checklists, representation letters, confirmation letters, summaries of significant findings, etc.
Many people are concerned about the time period of conducting a tax audit. Commonly, the audit period should take no longer than five or six months. Sometimes with proper preparation auditing process can be done faster.
Internal Revenue Service (IRS) does the auditing by mail and also notify the taxpayer within seven months of filing. Mail audits are completed usually in three to six months, and it also depends on the situation of auditing.
If you receive a tax audit notice then do not panic. The notice you receive will have specific information about why your tax return is going to be examined. There will be a mention of what documents are required from you and how you will proceed.
First of all, be concerned with the companies or professionals who have to carry out your tax audit mandatorily. Prepare all the required documents for your audit and get good consultation about your auditing.