Tax audit, as a special tax administration perform, has special attention to mentioning everyday actions and procedures so as to assist increase effectiveness in everybody's exercise of their duties, guaranteeing, at a similar time, taxpayers' rights in step with the subsequent characteristics:
- Specification, within the sense that there be no reason for doubt or double meanings within the formulation of duties;
- Coherence, so staff will see an exact duty in a very logical manner and while not overlapping;
- Utility, within the sense of avoiding complicated and drawn-out procedures;
- Effectiveness, so useful duties won't have an effect on the substitute growth of business burden and body barriers;
- Comprehensiveness, within the sense of providing solutions for varied things which may arise within the relations between taxpayers and tax officers and breakdown these things in compliance with the code of skilled ethics.
The structure of audit (see structure chart) meets the necessities for a good and useful audit, supported the requirements, that befits strategic objectives established within the orientations of the Tax Audit board of directors within the General Tax board of directors. The tax audit is a component of the structure of this workplace. Let's make a case for however they develop the perform of tax audit in step with tax varieties.
Audit Offices for VAT
In observance of national strategic plans and objectives for VAT audit, besides needs the necessities of Law the vat audit offices entirely specialize in the applying of requirements laid out in Law "On VAT" from taxpayers.Uae audit
concretely, inspectors to blame of this duty should check, audit, compare and proper taxpayers' declarations for:
- accuracy of changes associated with name, address and economic activity, or any changes in data taxpayers offer to the tax authorities at the time of the request for registration;
- Legal accuracy in finishing invoices for all incoming payments subject to rateable supplies;
- Visible exposure of costs within the premises wherever activity is exercised;
- VAT payment rates as compared to rate able sales and also the average rate within the individual sector;
- Accuracy of VAT declarations in sales and purchases, compared to monthly declaration and payment forms;
- Requests for deregistration, cases of declared bankruptcy, activity transfer;
- Requests for assessment of sections in Declaration and Payment kind (DFP);
- Requests for audit by General Taxation board of directors (GTD);
- Justifying documents, accuracy of registration and self-declaration in purchase and sales books for rate able and exempt provides, furthermore as VAT payment;
- Requests for VAT refund, supported Regulation "On VAT refund";
- Justifying documents, accuracy of registration and self-declaration in purchase and sales books for rate able and exempt provides, in step with call of Council of Ministers (DCM).
- Full value calculation for each sort of merchandise or service (purchase worth in step with the invoice, transportation prices, customs tax and different general costs) and its comparison with the sale worth declared by the corporate, furthermore as its compliance with the Law "On tax procedures" and also the instruction therefrom, work the worth the value and comparison costs in step with price ascertainment-acts unbroken by Tax workplace (investigation office).offshore company Dubai
In cases of agreements that GTD has with business associations certainly forms of merchandise and for the value (price) per m² in construction, comparisons are created for each analytical case and tax indebted are calculated accordingly;
- Actions with the brokerage account (in national cash and foreign currency), transactions in money higher than a threshold;
Audit workplace for revenue enhancement (AO-IT)
In observance of duties for auditing self-declared indicators of DPF for profit tax and accounting record by firms, besides the necessities of Law "On tax procedures" and Law "On accounting" as, rak offshore
this audit workplace entirely focuses on the applying of needs from Law "On financial gain tax" from taxpayers.
As regards audits of balance sheets and money accounts, inspectors from this workplace can:
- compare values in record things to those within the book (for manual diaries and IT ones);
- build arithmetic verification of artificial accounts within the ledger;
- crosscheck sums within the record with sums within the ledger;
- compare current result account and different accounts relevant to the current result;
- compare declared incomes within the accounting balance of the previous year with those declared in DPF and VAT within the center or in subsidiaries furthermore like knowledge received from different sectors within the workplace and different offices or institutions;
- build overall and analytical checks on lawfulness of expenses created, in step with the necessities of Law "On financial gain tax".
- check inventories and production in process;
- check registration of fastened assets worth, for each incoming and outgoing assets;
- build a "balance of changes" created from comparison the accounting state of affairs within the starting and at the tip of the exercise of activity.
Audit workplace for Excise, UAE offshore company
Withheld Tax and Insurance Contributions (AO-EWT-IC)
This workplace audits taxpayers exertion their activity within the trade and production of excise merchandise, with or while not business label, in step with the specifications of Law "On excise". At a similar time, this workplace audits the observance of needs in Law "On tax procedures", Law "On financial gain tax", and Law "On VAT", for the taxpayers audited by this workplace.
In terms of excise audit, inspectors during this workplace can:
- Check the observance of legal procedures for authorizations issued to persons and approval of land parcels, buildings or different premises, Dubai offshore
furthermore revoke or amendment such authorizations or approvals;
- Regularity of transfers for excise authorizations and/or approval of customs storehouse;
- Accuracy and justifying documentation for payment of excise obligations and observance of relevant legislation during this respect;
- Observance of audit procedures to be used of raw materials and extra substances, mixtures or different actions with excise merchandise or relative to them;
- Observance of legal needs for keeping records by excise licensed persons;
- Check the manner domestic or foreign excise merchandise are made, prepackaged and stored;
- Observance of legal needs for the transportation of excise goods;
- Observance of legal needs in fuel deposits;
- Check of justifying documentation and calculate withheld taxes in step with the necessities of the Law "On financial gain tax";
- Observance of needs for dominant the calculation and payment of employer's contributions.
This audit workplace administers the audit method bearing in mind the Excise Manual that may be a separate manual for the class of excise merchandise.
If exist a particular approved version of the Audit Manual for Social and insurance Contributions for auditing such contributions he is a guide in such cases.