Tax Audits Overcoming Fear and Misconceptions

For businesses familiar with the stringent tax penalty regime in the UAE, the term “tax audit” often invokes feelings of fear, doubt, and anxiety. While these emotions are natural, understanding the dos and don’ts of navigating a tax audit can significantly influence how a business responds to the Federal Tax Authority(FTA)and, in turn, impact the outcome of the audit.

This article is divided into three sections to achieve its purpose. First, we will clarify what “tax audit” means from a legal perspective. Next, we will discuss the rights of both the tax auditor and the person subject to the audit. Finally, I will share some helpful tips or strategies that could potentially turn the situation in your favour!