Even after the legally prescribed 5-year period has passed

“Federal Taxes”: 15 years of “auditing” in the cases of “tax evasion” and “non-registration”

It is generally not permissible to conduct a tax audit after 5 years from the end of the period.

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The Federal Tax Authority stated that “companies that do not register for value-added tax, or whose tax evasion is proven, are subject to an audit process for a period of 15 years, starting from the date on which they were required to register, or from the end of the tax period during which (tax evasion) occurred. Even if five years have passed since the end of the relevant period.

In a general clarification, the “Federal Taxes” stated, “Emirates Today” obtained a copy of it and issued it regarding value-added tax, for amendments to Federal Decree-Law No. (18) of 2022, that in general “the authority may not conduct a tax audit or issue a tax assessment.” for the taxable person, five years after the end of the relevant period.

And she continued: «However, as an exception to this general rule, the Authority may conduct a tax audit after five years have passed from the end of the relevant tax period, in cases including: (a case of tax evasion), as the Authority may conduct a tax audit, or issue a tax assessment within 15 years from the end of the tax period during which (tax evasion) occurred.

The authority also referred to the “non-registration case”, as the Federal Tax Authority may conduct a tax audit or issue a tax assessment within 15 years from the date on which the taxpayer was required to perform the tax registration. 

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