24 August 2026 · Response
Responding to an Audit Notice
When an FTA audit notice arrives, act calmly and fast. Read the scope and period carefully, appoint one informed point of contact so answers stay consistent, and gather exactly what is requested, no more, no less. Answer questions precisely, in writing where possible through EmaraTax, and meet every deadline, since silence is generally read as an absence of evidence. Do not volunteer speculation or send whole folders when a specific document was asked for, and never let two staff members give two different versions of the same transaction. If the audit results in an assessment you disagree with, you can request reconsideration within the statutory window, generally 40 business days, and escalate through the Tax Disputes Resolution Committee and, if necessary, the courts.
Exiloz Management & Tax Consultant · Dubai-based FTA-focused advisory · VAT, corporate tax & accounting
The first 48 hours
How you start an audit response shapes how the whole audit goes, because the first impression you give the auditor, organised or scrambling, colours how closely everything afterwards gets checked. The first two days are about setting up a process, not producing every answer immediately. Getting the structure right early saves far more time than it costs.
- Read the notice carefully: the scope, tax type and periods actually covered, not what you assume it covers.
- Appoint a single, informed point of contact so the FTA gets one consistent voice throughout.
- Gather exactly what is requested and check the set is complete before anything is sent.
- Confirm every deadline in the notice and diarise each one immediately.
- Loop in your tax advisor before the first substantive response goes out, not after.
Answer well, challenge if needed
Precision protects you; over-explaining creates new questions that were never part of the original request. Every answer you give becomes part of the audit record, so it is worth treating each one as a document in its own right rather than a quick reply. If the audit does end in an assessment you believe is wrong, the response process does not end there, it moves into a formal, time-limited challenge.
- Answer in writing wherever possible, precisely, and strictly to the point actually asked.
- Do not speculate or volunteer information beyond what was requested.
- Keep a running log of everything provided, including dates and the person who sent it.
- If assessed unfairly, file for reconsideration within the statutory window rather than letting it lapse.
- Route every communication through EmaraTax or your point of contact so there is one clear record.
Mistakes that turn a review into an assessment
Most audit damage is self-inflicted, and it tends to happen in the response rather than in the underlying books. The same set of avoidable mistakes shows up again and again, and each one is entirely within your control to prevent. Treating every request, however small, with the same seriousness as officers at your door is the simplest way to avoid all of them.
- Over-sharing: sending whole folders instead of the requested documents widens the review and invites questions nobody asked.
- Uncoordinated answers: two staff members describing the same transaction differently reads as inconsistency, even when both are being honest.
- Reconstructing records after the notice arrives: freshly created schedules that do not tie to contemporaneous documents undermine everything else you submit.
- Missing response deadlines: silence is read as an absence of evidence, and the FTA will assess on what it already has.
- Treating a desk review casually: a written information request carries the same weight as an on-site visit, so the response should meet the same standard.
Reconsideration, objection and appeal
An assessment is not the final word. The law gives you a structured path to challenge one, but each stage has a hard deadline that does not extend itself. The first step is a reconsideration request to the FTA itself, generally within 40 business days of the assessment, setting out clearly why you believe it is wrong. If reconsideration does not resolve it, the dispute can move to the Tax Disputes Resolution Committee and, beyond that, to the courts.
- Reconsideration request: generally within 40 business days of the assessment, filed directly with the FTA.
- Tax Disputes Resolution Committee: the next stage if reconsideration does not resolve the disagreement.
- Courts: available as a further escalation route beyond the Committee for unresolved disputes.
- Every stage is time-limited, so missing a deadline can close off the challenge entirely regardless of the merits.
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Frequently Asked Questions
For businesses handling a live audit notice, or an assessment they intend to challenge.
What should I do first when I get an audit notice?
Read the scope and periods carefully, appoint one point of contact, and start gathering exactly the records requested against the deadlines set out in the notice. Loop in your tax advisor before the first response goes out.
Should I give the auditor everything I have?
No. Provide precisely what is requested, no more. Over-sharing widens the scope of the review and can open new lines of enquiry that were never part of the original request.
Can I challenge the outcome?
Yes. If you disagree with an assessment, you can request reconsideration, generally within 40 business days, and escalate to the Tax Disputes Resolution Committee, and ultimately the courts, if it is not resolved.
Can Exiloz handle the response for us?
Yes. We act as your appointed point of contact, prepare and check every answer before submission, and manage any reconsideration or objection through to resolution.
What is the Tax Disputes Resolution Committee?
It is the formal body that reviews tax disputes after a reconsideration request has been rejected or not resolved, sitting between the FTA's internal review and the courts.
Should communication with the FTA go through EmaraTax?
Wherever possible, yes. Routing responses through EmaraTax or a clearly documented channel creates a single, timestamped record of everything provided, which matters if the matter is later disputed.
What happens if we miss the reconsideration deadline?
Missing the statutory window generally closes off that stage of the challenge, regardless of how strong the underlying argument is, so deadlines should be diarised the moment an assessment is received.
Can more than one person from our team speak to the auditor?
It is best avoided. A single, informed point of contact keeps answers consistent; multiple people responding independently is one of the most common ways an honest answer starts to look inconsistent.
Respond to the FTA the right way
Exiloz acts as your single point of contact, prepares and checks every response before it goes to the FTA, and manages any reconsideration or appeal end to end.