Maintain your documents in order to avoid any litigation issues.
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Companies in the UAE have been
asked to maintain their documentation in order to avoid any litigation issues
related to tax regime, say tax experts.
"It has been two years
now [since value-added tax was implemented] and the Federal Tax Authority is
not going to accept lack of preparedness as an argument. That is not going to
save or benefit companies. If companies don't know, they must ask for clarification.
You have to be audit-ready from all aspects.
"Documentation is the
only thing that will save companies. Preparedness to have books reconciled with
what returns you have filed and documentation that you have kept to support
returns that have been filed will save from litigation," Shah said while
addressing members of the Institute of Chartered Accountants of India (ICAI) -
Dubai chapter in Dubai on Saturday.
He warned that if companies
have not been audited, it doesn't mean they won't be. However, he said,
authorities could be lenient only for genuine cases.
"Ignorance of the law is
not going to be an excuse as well. If you don't know the law well, study it
well. They will not take an excuse that 'I was not advised well'. What will
gain sympathy is your documentation and preparedness or ability to produce data
within the time frame the authorities have asked," he told the chartered
accountant fraternity.
Anish Mehta, chairman of the
ICAI - Dubai Chapter, said a healthy life and lifestyle has always been an
important measure of the UAE government and with this initiative of adding more
products under excise tax, control over illness arising from the consumption of
harmful goods can be achieved.
During 2019, he said the FTA
released new public clarifications on VAT which will help the tax payers to
properly treat their books of account for VAT perspective.
Sundar Nurani, vice-chairman
of the ICAI - Dubai Chapter, said UAE businesses that import, produce or
stockpile products related to sweetened drinks, electronic smoking devices and
tools, liquids used in electronic smoking devices and tools face new compliance
and potential registration obligations due to the expansion of the excise tax
regime from December 1.
"Non-compliance with the
expanded legislation could have a significant commercial impact and businesses
could face issues clearing shipments of stock at the border if certain
compliance obligations are not fulfilled," he said.
Ref: Khaleej Times
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