Alchemist- An accounting and consulting firm for your assistance.

UAE Tax Procedure-Voluntary Disclosure

global

The voluntary Disclosure system provides citizens with information about their rights and duties under the law, and it helps them to be aware of the procedures required for filing a complaint or taking legal action in case of tax filing issues.

Those who fail to comply with tax regulations by law can make voluntary disclosures. Mandatory disclosures are required by UAE government agencies when they are trying to recover unpaid taxes or that have been paid but are not being paid adequately by the entity, or assess taxes that should have been paid but were not. Not getting a Voluntary Disclosure may result in a large refund being sent to you or legal action being initiated against you by the Government

The voluntary disclosure form is used when you become aware of an error on your return. It may be required if you failed to report your interest income on your return and/or you had regular dealings with one or more individuals who were not in compliance with your return.

In such a case, you should provide the disclosure even if it is against your interest because the error could not have been made without your knowledge or assistance. You should inform the authorities without delay so they can take appropriate action against those responsible for the error and ensure that the proper taxes are paid.

Audit and Filing of Voluntary Disclosure

If Tax return Assessment Amount is wrong (more than the amount of AED 10000) then in such a case the person should make a Voluntary Disclosure about the amount within 20 days of coming to know about the error. This will help you to be entitled to the refund or credit that might be owing. The way this is done is as follows:-In the first instance, the person should contact the Tax department and request a review of their assessment. He or she should explain the situation and provide relevant documents. The Tax office will then decide whether to issue a refund or credit accordingly.

In the case of an error in the calculation of income tax - either due to a spreadsheet or some other error in the software used to calculate and profile income taxes or due to a customer not responding to communication regarding error - a Voluntary Disclosure is generally required under the Internal Revenue Code. The purpose of this procedure is to allow the authorities to correct any errors in computations or property reporting without requiring the person or business to pay additional taxes or interest costs. The duty of prompt disclosure is even more important where an error has been made in calculating taxes due rather than income received. We at Alchemist provide you the best accounting and taxation consultants to safeguard your firm from such erroneous errors.

The public authority of the UAE has mulled over the accommodation of the Voluntary Disclosure should not be hazardous for organizations. One can present the Voluntary Disclosure through the VAT segment accessible in the eServices gateway on the site of the Federal Trade Authority (FTA).