To present you for the auditing in front of concerned authorities, you should keep in mind the below factors in your mind, in order to handle the process smoothly.
Control your Nerves
If you have committed cheating on your taxes then a little panicking can be for sure, so you must hire a tax attorney to represent you. On other hands, a lot of people who are audited might have made clerical mistakes or unintentionally mistakes those can be easily resolved. In case you are not familiar with tax-related terminologies and techniques then you must hire a tax professional, a registered agent or a tax attorney – to guide you through the process, find out More Detail.
Mental and Financial preparations
If the tax authority has selected you for auditing then it means they are expecting additional money out of you. Until the completion of the audit which might take months by an audit firm in Dubai, an individual might not aware know if he owes anything or how much it will be. Considering the best situation that can turn out will be that you completed your return accurately in the first place or in case of an error in your favor. But in other cases, if things don’t work out so well, make a plan about from where you collect the cash to pay any balance.
Decision about Response
Individual must understand that why he is being audited and what type of audit FTA is expected to conduct. Whether it is correspondence audit, an office audit or a field audit? Correspondence audits expect you to respond via mail with requested documents. Taxpayers might handle this type of audit on their own. Office audits require the taxpayers to pay a visit to an FTA office for an in-person discussion, and field audits send an FTA official to your residence or business. These two types of audits include a higher level of inspection and present more opportunities for taxpayers to accidentally incriminate him. In case if taxpayers find him in one of these two situations he should hire professional for help.
Just in case if the audit is over a small scale and you might want to handle the process yourself, then you must read a book on the subject matter to avoid expenses that will be implemented for hiring tax professional.
Collect Your Tax related Records
In an ideal condition, you would have accumulated all the relevant records like a tax return, but if you didn’t, now is the time to track them down. You must have copies of your bank statements, proof of donations you made and any other paperwork that back the numbers on your tax return. To avoid errors and omissions you must go for completeness and accuracy. You might need your returns and support documentation from the last three years.
Try not to give extra information to FTA in case if the individual is not asked for the presentation.
An appeal can be made in case you are not satisfied with FTA decision. FTA officers can modify an auditor’s results, which might reduce or eliminate any extra taxes, interest, and penalties the auditor determines that you owe