Corporate Tax Audit Support

A UAE Corporate Tax audit may require a business to provide tax returns, financial statements, accounting records, transaction details and supporting documents to the Federal Tax Authority (FTA). Preparing these records carefully can help businesses respond to requests accurately and identify potential discrepancies before submitting information.

Gupta Accountants provides Corporate Tax Audit Support in Dubai to help businesses organise their tax records, review relevant calculations, reconcile financial information and prepare responses to FTA audit queries and information requests.

Our services are designed for UAE mainland companies, free zone entities, SMEs and businesses operating within corporate groups that need assistance preparing for or responding to a Corporate Tax audit.

What Is UAE Corporate Tax Audit Support?

Corporate Tax audit support involves helping a business prepare for, manage and respond to an FTA examination of its Corporate Tax affairs.

The scope of an audit may vary depending on the circumstances. The FTA may request information relating to submitted Corporate Tax returns, taxable income calculations, deductible expenditure, related-party transactions, tax reliefs, supporting documents and other relevant matters.

Audit support focuses on reviewing the available records, identifying inconsistencies, organising supporting evidence and helping the business respond to the matters raised.

An audit review does not guarantee a particular outcome. However, a structured approach can help businesses understand the issues under examination and present accurate, relevant and properly supported information.

Our Corporate Tax Audit Support Services

1. FTA Corporate Tax Audit Preparation

We help businesses organise their Corporate Tax records and prepare for an audit or formal information request.

Our assistance may include:

• Reviewing relevant Corporate Tax returns and tax calculations.

• Organising financial statements and accounting records.

• Identifying supporting documents for significant transactions.

• Reviewing relevant tax adjustments and disclosures.

• Preparing a document checklist based on the FTA's request.

• Identifying missing information or inconsistencies requiring further review.

The scope of the preparation depends on the period under examination and the information requested by the FTA.

2. Corporate Tax Return and Calculation Review

An FTA audit may involve questions about the figures reported in a Corporate Tax return and how taxable income was calculated.

We assist with reviewing the relevant tax computations and comparing reported figures with available accounting records and financial statements.

The review may cover:

• Accounting profit and taxable income adjustments.

• Revenue and expense classifications.

• Deductibility of relevant expenditure.

• Tax reliefs and elections claimed, where applicable.

• Tax loss utilisation.

• Other adjustments relevant to the return under examination.

Where discrepancies are identified, we help assess their nature and identify whether further explanation, supporting evidence or a separate correction procedure may be required.

3. Accounting Records and Financial Reconciliation

Reliable accounting records are important when responding to tax audit requests.

We help businesses reconcile relevant financial information and organise records that support the figures reported for Corporate Tax purposes.

Our work may include reviewing:

• Financial statements and trial balances.

• General ledger accounts and transaction schedules.

• Revenue and expense records.

• Bank records and relevant supporting documents.

• Fixed asset schedules and depreciation calculations.

• Differences between accounting profit and taxable income.

The objective is to identify inconsistencies, clarify the supporting information and help establish a clear connection between the accounting records and the tax return.

4. Supporting Document Review

An FTA audit may require documentary evidence to support particular transactions, expenses, tax adjustments or relief claims.

Gupta Accountants helps businesses identify and organise relevant records, which may include:

• Sales and purchase invoices.

• Contracts and commercial agreements.

• Bank statements and payment records.

• Payroll and employee-related records, where relevant.

• Intercompany agreements and related-party transaction records.

• Fixed asset documentation.

• Financial statements and management reports.

• Documents supporting tax reliefs or elections.

The required evidence depends on the specific questions raised during the audit. We help organise the available documentation and identify apparent gaps requiring attention.

5. Assistance with FTA Audit Queries

When the FTA requests clarification or additional information, a business may need to prepare a clear response supported by relevant evidence.

We assist with reviewing the questions raised, identifying the records needed to address them and organising the information for a response.

Depending on the agreed scope, this may include:

• Reviewing the FTA's correspondence.

• Identifying the tax periods and transactions concerned.

• Preparing supporting schedules and reconciliations.

• Organising relevant documents.

• Assisting with drafting responses based on verified information.

• Helping track outstanding requests and response deadlines.

Responses should be accurate, complete and consistent with the underlying records. Where a matter requires legal advice or specialist representation, additional professional support may be appropriate.

6. Related-Party and Transfer Pricing Audit Support

Related-party transactions may receive particular attention when the FTA examines the pricing, commercial basis or documentation of transactions between associated businesses.

We assist with reviewing relevant transaction records and identifying supporting information that may be required.

Our support may cover:

• Intercompany sales and purchases.

• Management fees and shared service charges.

• Intercompany loans and financing arrangements.

• Related-party transaction disclosures.

• Transfer pricing documentation, where applicable.

• Supporting agreements and pricing calculations.

Where appropriate, a more detailed transfer pricing review can be considered separately.

7. Free Zone Corporate Tax Audit Support

Free zone businesses may need to provide evidence supporting their Corporate Tax treatment, including where they claim the benefits available to a Qualifying Free Zone Person.

Depending on the issues under review, relevant matters may include qualifying income, adequate substance, qualifying activities, non-qualifying revenue, transfer pricing compliance and applicable documentation requirements.

Gupta Accountants helps free zone businesses organise the relevant records and review the information supporting their reported tax position.

The applicable conditions depend on the company's circumstances and the rules relevant to the tax period being examined.

8. Review of Tax Reliefs and Elections

Where a business has claimed a Corporate Tax relief or made a tax election, the FTA may request information supporting its eligibility or application.

We assist with reviewing relevant calculations, documents and records associated with matters such as:

• Small Business Relief, where applicable.

• Qualifying group relief.

• Business restructuring relief.

• Tax loss relief.

• Participation exemption.

• Other applicable reliefs or elections.

Each relief has specific conditions. The review should establish whether the available records support the treatment adopted in the relevant tax return.

9. Identification of Potential Tax Discrepancies

During an audit preparation exercise, discrepancies may arise between tax returns, financial statements and supporting records.

We help identify and assess such differences so that the business can understand their nature and determine the appropriate next steps.

Potential issues may include unsupported expenses, inconsistent transaction classifications, incomplete disclosures, calculation differences or missing documentation.

Where an error in a submitted return is identified, the appropriate correction process should be assessed separately. An audit response should not automatically be treated as a voluntary disclosure or amendment without considering the applicable procedures.

10. Audit Follow-Up and Record Organisation

An FTA audit may involve more than one request for information. Businesses should maintain an organised record of correspondence, submissions and supporting documents.

We help businesses organise relevant audit records and identify outstanding information requests or follow-up actions within the agreed scope.

This can include maintaining document schedules, tracking the status of responses and helping the business prepare for further clarification requests.

The FTA remains responsible for determining the outcome of the audit and any resulting tax adjustments or penalties.

When Should a Business Seek Corporate Tax Audit Support?

Professional support may be useful when:

• The FTA has issued an audit notification.

• The business has received a request for additional tax information.

• Corporate Tax returns or calculations are being examined.

• The FTA has requested financial statements or transaction records.

• Related-party transactions or transfer pricing arrangements are under review.

• The business has claimed a relief or election requiring supporting evidence.

• Financial records contain discrepancies that need to be explained.

• The company wants to organise its records before responding to an audit-related request.

If a formal request has been received, the business should review the stated deadline promptly and avoid delaying its response while gathering information.

Our Corporate Tax Audit Support Process

Step 1: Review the FTA Notification or Request

We review the available correspondence to understand the scope of the audit, the relevant tax periods, the questions raised and any stated response deadlines.

Step 2: Identify Required Records

We prepare a list of relevant financial statements, tax returns, accounting records and supporting documents based on the information requested.

Step 3: Review Tax Calculations and Reconciliations

We compare the relevant tax figures with available accounting information and identify discrepancies or matters requiring explanation.

Step 4: Organise Supporting Evidence

We help compile relevant records and prepare supporting schedules that explain the transactions or tax treatments under review.

Step 5: Assist with Preparing Responses

Where included in the engagement, we help organise the information and prepare draft responses based on verified records and the matters raised by the FTA.

Step 6: Support Follow-Up Requests

We help track outstanding items and organise additional information where further clarification is requested, subject to the agreed scope of work.

Why Choose Gupta Accountants for Corporate Tax Audit Support?

Structured audit preparation: We help businesses organise the relevant records and understand the information required for the audit.

Focus on supporting evidence: We help connect tax calculations and reported figures with the accounting records and available documentation.

Practical reconciliation support: We review relevant financial information to identify discrepancies that may require clarification.

Transaction-specific attention: We consider the transactions and tax treatments under examination rather than relying on a generic checklist alone.

Ongoing communication: We help businesses track information requests and understand the next steps within the agreed scope.

Frequently Asked Questions - Corporate Tax Audit Support

What is an FTA Corporate Tax audit?

An FTA Corporate Tax audit is an examination of a taxpayer's relevant tax affairs to assess compliance with the applicable UAE Corporate Tax rules. The FTA may request returns, financial statements, accounting records, transaction details and other supporting information.

What documents should I prepare for a Corporate Tax audit?

The required documents depend on the audit's scope. They may include Corporate Tax returns, financial statements, general ledger records, invoices, contracts, bank records, tax calculations and evidence supporting relevant reliefs or disclosures.

Can Gupta Accountants help respond to an FTA audit query?

Yes. Gupta Accountants can assist with reviewing the request, identifying relevant documents, preparing reconciliations and helping organise draft responses based on the available information, subject to the agreed scope and appropriate authorisation.

What should I do if I discover an error during an audit?

The error should be reviewed promptly to determine its nature, financial effect and the appropriate procedure under the applicable rules. The correct course of action may depend on whether a return correction, voluntary disclosure or another process is relevant and on the status of the FTA examination.

Can free zone companies receive Corporate Tax audit support?

Yes. Free zone companies may need to support their reported Corporate Tax treatment with relevant financial, operational and transaction records. The documents required depend on the issues raised and the tax treatment claimed.

Does Corporate Tax audit support guarantee that penalties will be avoided?

No. Audit support cannot guarantee that the FTA will accept a particular tax treatment or that penalties will not arise. The outcome depends on the facts, supporting evidence and applicable legislation.

How quickly should I respond to an FTA audit request?

You should review the deadline stated in the FTA notification or request and begin gathering the required information promptly. If clarification or additional time is needed, the appropriate options should be assessed through the relevant FTA process.

Is a Corporate Tax Health Check the same as Corporate Tax Audit Support?

No. A health check generally focuses on proactively reviewing a business's wider tax compliance position and identifying potential gaps. Audit support focuses on preparing for or responding to a specific FTA audit, examination or information request.

Need Corporate Tax Audit Support in Dubai

If your business has received an FTA Corporate Tax audit notification, an information request or questions about previously submitted tax information, Gupta Accountants can help you review the relevant records and prepare an organised response.

Contact us to discuss the scope of the audit, the information requested and the assistance required.

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