The FTA conducts unannounced audits with severe penalties.

The tax rules of the United Arab Emirates now allow tax officials to perform tax audits on chosen enterprises without previous notification, which is a significant breakthrough in the field of taxes. This unprecedented action places both corporations and individuals on high alert, since the consequences of noncompliance have never been more severe.

Unannounced Tax Inspections

The Federal Tax Authority (FTA) has the authority to conduct these audits without prior notice. As a result, it is critical for business owners to remain aware and appropriately prepared. Throughout this instructive journey, we will look at the implications of noncompliance and arm?you with the knowledge you need to protect your company's interests.

Understanding the Consequences Individuals found guilty of the following actions may face imprisonment, fines, or a combination of the two, with penalties not exceeding one million dirhams or either of these two punishments:

1. Intentional fake Information Submission: Providing erroneous data, false information, or incorrect papers to the Authority.
2. Hindering Authority Employees: Deliberately hindering or impeding the Authority's employees in the performance of their duties.
3. Misuse of Authority records: committing theft, misusing, or destroying records or materials in the Authority's possession.
4. Documents Concealed or Destroyed: Willfully concealing or destroying documents, data, information, or materials that one is legally required to provide to the Authority.

Imprisonment

A fine not less than the amount of tax evaded and not more than three times the amount of tax evaded, or one of these two penalties.

Tax Evasion Penalties

Penalties can be severe if any of the foregoing acts result in tax evasion, facilitation, or concealment.

Safeguard Your Company's Financial Stability. Don't jeopardize your company's stability or financial condition. Maintain strict tax compliance, verify the correctness of your records, and be ready for possible tax audits.

To schedule a consultation or for questions about tax compliance, please call our experts at +971 (0)4 333 1213 or email us at [email protected].