The Federal Tax Authority (FTA) conducts audits as a formal examination of a taxable entity’s liability and records. Since the UAE operates on a self-assessment model, where businesses are responsible for calculating and reporting their own VAT and Corporate Tax, the authority requires a mechanism to validate these declarations. An audit involves a forensic review of submitted Tax Returns, accounting ledgers, and commercial documents to confirm accuracy. The process ensures that all tax dues are settled correctly and that the business remains fully compliant with the relevant Federal Decree-Laws and UAE Tax Legislation.
Surviving an FTA review requires more than basic bookkeeping; it demands a forensic level of organization. The authority evaluates not just the numbers, but the internal framework used to generate them. G12 ensures your business is prepared to demonstrate robust governance and accurate reporting.
Reliable representation is essential. G12 acts as your technical defense, validating your tax positions and managing the submission of the FTA Audit File (FAF) to prevent administrative fines.
Facing an FTA officer requires legal knowledge and data precision. G12 provides the technical infrastructure to protect your financial interests.
We identify liabilities before the FTA does. Utilizing the Voluntary Disclosure mechanism prior to an official assessment can save significant capital in avoiding administrative fines.
The FTA mandates data submission in a specific "FTA Audit File" (FAF) format. We manage the extraction and conversion of your accounting data into this required technical format, preventing rejection due to file errors.
Tax laws are open to interpretation. We defend your tax positions by citing specific Articles and Executive Regulations, preventing the auditor from making incorrect assumptions about your business model.
Responding to an audit requires hundreds of man-hours for data compilation. We absorb this workload, allowing your internal finance department to maintain focus on current business performance rather than historical records.
The Authority typically issues a formal notification via the EmaraTax portal and registered email. This notice specifies the audit scope (VAT, Corporate Tax, or Excise), the period under review, and the list of required documents. Businesses usually have five business days to acknowledge receipt and submit the initial “Audit File.”
Under UAE Tax Law, taxable entities must retain all financial records, invoices, and ledgers for a minimum of 5 years from the end of the tax period. For companies owning real estate assets, the retention period extends to 15 years. Failure to produce these physical or digital records results in immediate penalties.
A Desk Audit is remote; the FTA requests documents to be uploaded via the portal or email for review at their offices. A Field Audit involves tax officers visiting your physical premises to inspect inventory, systems, and operations. Both carry equal legal weight and potential for penalties.
If you dispute the FTA’s findings, you must pay the penalty first (or obtain a waiver) and file a Request for Reconsideration within 40 business days. If the Reconsideration is rejected, the next step is the Tax Disputes Resolution Committee (TDRC), provided the tax and penalties are settled.