An official FTA Tax Audit—whether for VAT, Corporate Tax, or Excise Tax—is a high-stakes event that can result in crippling fines, back taxes, and penalties if records are not perfectly in order. The Federal Tax Authority (FTA) may audit any business, often with minimal notice, requiring immediate and precise response. FrankDigit Accounting Services, with FTA-Approved Tax Agent status, provides comprehensive pre-audit preparation, dedicated representation, and post-audit dispute resolution.
We act as your single point of contact, managing all communications and documentation to shield your internal team from disruption. Upholding Confidentiality, Transparency, and Integrity (CTI), Bilal Mogul’s team ensures your tax position is robustly defended and that non-compliance penalties—including the AED 20,000 fine for non-cooperation—are completely mitigated or successfully appealed.
An FTA Tax Audit is an official examination of a business’s records, accounts, and systems, conducted by the Federal Tax Authority to verify tax compliance (VAT, CT, Excise). Audits can be triggered by inconsistent filings, high loss reporting, or random selection. Expert representation by an FTA-Registered Tax Agent is essential because it:
- Manages the Process: You receive legal guidance throughout the inspection, ensuring your rights are protected.
- Streamlines Document Submission: We speak the FTA’s language and provide only the specific, verified documents requested, preventing auditors from expanding the scope.
- Defends Tax Positions: We professionally defend the technical rationale behind your VAT treatments or Corporate Tax deductions.
We manage the entire audit lifecycle, protecting your business from the moment the FTA issues a notification.
| Deliverable | How FrankDigit Delivers |
|---|---|
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Audit Notification Management |
Handling all initial communication with the FTA via EmaraTax and preparing the mandatory response within the strict 5-10 day deadline. |
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Document Vetting & Organization |
Pre-audit review, cleaning, and indexing of VAT Returns, IFRS Financial Statements, and source invoices for instant retrieval. |
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Official FTA Representation |
Our Tax Agents represent your business during Desk Audits or Field Audits, defending your tax position and handling all official queries. |
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Penalty Mitigation & Appeals |
Identifying grounds for Penalty Waiver or filing a formal Reconsideration Request to the FTA against unfair findings or fines. |
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Voluntary Disclosure Filing |
Proactive submission of Voluntary Disclosures before an audit starts to correct past errors, significantly reducing fixed and percentage-based penalties. |
The FTA focuses on specific areas that, if unsupported, lead directly to severe penalties and backdated assessments.
FTA auditors often focus on high-risk areas: incorrect claims of Input VAT on blocked expenses, unverified Zero-Rated or Exempt supplies, and non-compliant Transfer Pricing Documentation for related-party transactions (under Corporate Tax). We conduct a comprehensive “mock audit” to review these specific risks, ensuring all evidence (customs forms, contracts, board minutes) is collated, verifiable, and available for the auditor on demand.
Failure to cooperate with a Tax Auditor during an investigation is a distinct violation under UAE Tax Procedures Law. This includes failing to provide requested documents or obstructing the audit process, which attracts a fixed penalty of AED 20,000 for the first instance. Our role is to ensure all mandated records are accessible and that communication is prompt, professional, and channeled through a single, expert point of contact to prevent compliance breakdowns.
We replace the panic of an audit notice with a structured, legally sound defense plan.
- Decode (Risk Assessment): We interpret the FTA’s notification, define the exact scope of the audit (VAT, CT, Excise), and immediately identify and address any existing filing errors through a proactive Voluntary Disclosure.
- Simplify (Document Preparation): We take custody of your relevant financial records, organize them by the FTA’s checklist, reconcile key ledger accounts, and prepare a Defense File that justifies every high-risk transaction.
- Automate (Liaison & Resolution): We manage the entire audit interaction, represent you during site visits, negotiate findings, and, if penalties are issued, file the necessary Reconsideration Request to the FTA to minimize or eliminate the financial liability.
Received an FTA Audit Notice? Don’t respond without expert counsel. Immediate action is critical.
📞 Contact FrankDigit Accounting Services now for immediate Tax Audit Support and Representation.