Implement proactive strategies to address tax audit and investigation risks

To ensure taxpayers' compliance with the laws and regulations of the Tax Authority, Yemeni Tax Authority has developed and updated tax legislation in light of the state's financial and economic policies, where tax audits are an essential tool used by the Tax Authority (“TA”) to ensure taxpayers are in compliance with the relevant tax laws and regulations. Accordingly, any non-compliance will potentially attract hefty penalties.

Therefore, it is essential to confirm that your company or you as a taxpayer have properly addressed your tax duties and have established relevant supporting paperwork to uphold the position adopted during a tax audit or investigation.

If you find yourself in the midst of a tax audit or investigation, it is important to consider the various strategies and defensive positions that can help minimize your tax obligations. Seeking the guidance of a tax professional will enable you to effectively manage the situation and adopt a more strategic approach.

We have a dedicated team that excels in handling tax audits and investigations, consistently achieving the desired results for our clients.

We are available to help you with the following:

Pre-tax audit / investigation
  • Conduct a detailed evaluation to pinpoint issues or gaps and create action plans to mitigate the risk.
  • Prepare a capital statement to understand your tax profile and take necessary precautionary steps.
  • Review of information / documents, and assess the tax risk prior to submission to the TA.
During tax audit / investigation
  • Offer advice on the steps to take during a tax audit or investigation.
  • Discuss and present the justifications to the TA on the tax position adopted. 
  • Negotiate with the TA to reach an amicable settlement.
Post tax audit / investigation
  • Collect and review essential feedback once a tax audit or investigation is completed.
  • Establish an action plan to minimize future tax responsibilities by implementing appropriate corrective actions.
  • Update tax calculations in accordance with the tax audit revisions.

It is important to recognize that a tax audit has the potential to impact the taxpayer's financial resources significantly if not handled with care. The financial strain caused by the audit can be mitigated by managing the process diligently and ensuring that all necessary steps are taken to address the issues at hand. By staying proactive and organized, the taxpayer can minimize the negative effects on their cashflow.

Our team is ready to partner with you and support you along the entire process. Reach out to us today to begin.