FTA audits are complicated and can take up a lot of time. They require a good understanding of UAE tax laws. If your business is not fully following the regulations, you could face fines and penalties, which can be costly and harm your business's reputation.
The risk exposure for a company receiving a Federal Tax Authority (FTA) audit notification can be significant, as non-compliance with FTA regulations can result in penalties, fines, and reputational damage. It is crucial for the company to take immediate action to ensure compliance with the regulations and mitigate any potential risks.
The first step the company should take upon receiving an FTA audit notification is to conduct an internal review of the company's FTA compliance practices and documentation. This review should include a thorough examination of all relevant documentation, such as certificates of origin, shipping manifests, invoices and other trade-related records.
After the internal review is completed, the company should address any compliance issues that were identified and take corrective action as needed. This may involve updating documentation, implementing new procedures, or conducting additional training for employees involved in FTA compliance.
Additionally, the company should collaborate with legal counsel or trade compliance experts to ensure that they fully understand the FTA regulations and are taking all necessary steps to comply with them. It may also be beneficial to reach out to the auditors conducting the FTA audit to discuss any concerns or challenges the company may have.
By taking swift and proactive action to address compliance issues and work closely with legal counsel and auditors, the company can minimize their risk exposure and demonstrate a commitment to compliance with FTA regulations.