The Federal Tax Authority (FTA) has recently begun its review process by requesting additional information and supporting documents from the Taxpayers following the submission of Corporate Tax (CT) returns. This action appears to be part of the FTA’s efforts to verify the accuracy and completeness of the CT filings, in accordance with the requirement of Corporate Tax Law.
Key information requested is as follows:
- Detailed trial balance for the relevant tax period, showing opening balances, movements, and closing balances.
- Audited financial statements or a valid explanation if the same are not submitted.
- Justification for the absence of comparative figures, for the companies that are not newly incorporated.
- Bank statement extracts covering the relevant tax period.
- Sales report, including cost details and profit margins.
- Details of transactions with connected persons or related parties.
- Comprehensive employee list, including names, date of joining, salary details, and any additional benefits provided.
- Corporate structure chart outlining all branches and business locations.
Taxpayers should ensure that all information reported in CT returns is accurate, complete and supported by relevant documentation or financial data. After reviewing initial submissions, the FTA may request for further clarification or additional details.
The FTA’s approach signals increased post-filing scrutiny and any delays or incomplete responses could result in compliance risks or administrative penalties.