Know where your tax position stands

A tax health check is an independent review of selected VAT and Corporate Tax positions to determine whether they are supported by the underlying accounting records, transactions and evidence. The review works back from what has been reported to identify reconciliation differences, unsupported treatments, documentation gaps, control weaknesses or matters that may require further attention. The scope can focus on particular tax types, entities, periods or risk areas rather than repeating the full return-preparation process.

A tax health check is an advisory review commissioned by the business, while an FTA tax audit is an examination performed by the Federal Tax Authority. A health check can therefore be carried out proactively before FTA contact or used to help establish the underlying position after an information request or tax audit has begun.

A review can be undertaken before FTA contact, after an information request, or once a tax audit has begun. The scope should reflect the stage of the matter and the records, transactions and supporting evidence available.

Yes. A tax health check can cover VAT, Corporate Tax or both, depending on the agreed scope. A combined review can be useful where the same accounting records, transactions or reconciliations affect both tax regimes. VAT areas may include return-to-ledger reconciliation, input and output VAT, reverse charge and supporting documentation. Corporate Tax areas may include taxable income reconciliation, adjustments, related-party matters, Free Zone positions and supporting financial information.

The records required depend on the tax types, periods and issues being reviewed, but we normally begin with information that already exists. This may include filed returns, tax calculations, general ledger data, trial balances, financial statements, reconciliations, invoices, credit notes, contracts, schedules and other supporting evidence. Additional documentation is requested only where a material position requires it.

The scope and fee depend on the amount and complexity of work required rather than simply the size of the business. Relevant factors can include the tax types and periods being reviewed, number of entities, transaction volume, quality of the accounting records, number of material tax positions and whether areas such as Free Zone treatment, related parties or cross-border transactions require deeper review. If the FTA has already contacted the business, the notice, affected periods and response requirements may also affect scope.

The timeframe depends on the agreed scope, record quality and complexity of the tax positions being reviewed. A focused review of one tax type or a limited number of periods can usually be completed more quickly than a combined VAT and Corporate Tax review involving several entities, complex transactions or incomplete reconciliations. The expected timetable is confirmed once the scope and available records have been understood.

Yes. The tax health check can be performed as an independent review of work already prepared by your internal finance team, accountant or tax adviser. The purpose is not automatically to replace the existing provider, but to test whether reported positions can be reconciled to the accounting records, underlying transactions and supporting evidence. Where a position is adequately supported, it can remain unchanged. Where gaps are identified, the review explains what requires strengthening, correction or further analysis.

A finding does not automatically mean that the same corrective action is required in every case. We first determine whether the issue relates to documentation, controls, tax treatment, a filing error or a position requiring further technical analysis. The appropriate response may involve strengthening the audit trail, changing the treatment going forward, assessing the correct filing mechanism or considering whether a Voluntary Disclosure is appropriate under the applicable rules.

Yes. The review can be adapted into structured FTA audit or information-request support once the Authority has contacted the business. The immediate focus is to understand the notice, affected tax periods and requested information, reconcile the relevant figures to the records, assemble supporting evidence and prepare clear explanations. Where formal representation before the FTA is required, support can be coordinated with an appropriately registered Tax Agent, subject to the applicable appointment requirements.

No. A tax health check is an advisory review and does not provide a statutory audit opinion or an assurance conclusion. It is designed to test whether tax positions can be traced, explained and supported from the underlying records and evidence. Any separate statutory audit, formal assurance work or other regulated procedure would need to be scoped independently where required.