Month: December 2019

SUBMISSION OF CBCR NOTIFICATION TO MOFA

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All multinational groups with Group Revenue equal to or exceeding 3.15 Billion AED must read this carefully. Otherwise, there is a risk of AED 1,000,000 penalty if the form is not submitted by 31 December 2019.Ministry of Finance (MoF) has required all eligible entities to submit CbCR notifications before the 31 December 2019 deadline. The purpose of reporting is to eliminate gaps in information between taxpayers and tax administrators. Cabinet Resolution No. 32 on Country-by-Country Reporting regulation was issued in UAE on 30th April 2019 and requires those entities which are tax residents in the UAE and part of a multinational group; to file a notification to the Ministry of Finance in a specified format.Applicability of Resolution:Multinational groups with consolidated revenues of at least AED 3.15 billion (approximately USD 855 million) per annum and wherein,
  1. An Ultimate Parent Entity established in the UAE being tax resident (being parent company of a Multinational Group)
  2. A Constituent Entity, through ownership or control of a Multinational Group in UAE.
Compliance Requirements:CbCR Notification Notification must be submitted, on or before the last day* of the group’s financial year by the Constituent Entity of an MNE Group being Tax Resident of UAE.*Where financial reporting year of the Multinational group starts on 1st January 2019, the due date of first notifications must be on or before 31 December 2019CbC Report FilingThe filing must be done within 12 months from the end of group financial year* by:
    1. Parent Company being Tax Resident in UAE
    2. Constituent Entity (being tax resident) on fulfilling certain conditions.
Penalties for Non- compliance:
Failure to keep the documents and information for a period of 5 years from the date of submitting CbCRAED 100,000
Failure to provide any information required in accordance with the CbCR and notificationAED 100,000
Failure to report or notify on or before the due dateAED 1,000,000 plusAED 10,000 per day subject to maximum AED 250,000
Failure to provide complete and accurate informationAED 50,000 – 500,000
 How Affiniax Partners can Help
  • Assessment of applicability of Regulation CBCR requirements
  • Assist in Notification Compliances
  • Assist in aggregating the data required under the CbC Reporting
  • Advisory services

PHISHING ALERT: UAE VAT

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“We are aware that a number of clients have been sent emails and letters from fraudsters pertaining to be the Federal Tax Authority or Banks and requesting for certain details from them.The Federal Tax Authority would generally only communicate with registrants through emails from the domain tax.gov.ae sent to the registered email address, or via your eservices.tax.gov.ae portal and registered number.If you are uncertain as to the genuineness of communication received, please feel free to contact our VAT services team for guidance.”

ROLE OF AN ACCOUNTANT IN BUSINESS OPERATIONS

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Role of An Accountant in Business Operations

An accountant can be anything from a simple bookkeeper to a strategic advisor, interpreting financial information for senior decision-makers in business operations.

Financial Data Management

The accounting structure of a company is an essential component of business operations. One of the primary roles of an accountant usually involves the collection and maintenance of financial data as it relates to a company or firm. The accountant ensures that financial records are maintained in compliance with lawfully accepted procedures and policies on the corporate level. The financial information for any organization should be kept in a pristine manner because it is a key component used to operate and manage any business.

Managing the financial data of an organization can also include more sophisticated duties, such as developing, implementing, and maintaining financial databases, as well as establishing and monitoring control procedures.

Analysis And Advice

As analysts, accountants may perform certain types of analysis using financial data that is used to assist in making business decisions. From deciding which kinds of supplies to ordering payment of bills to payroll, the accountant handles many intricate financial details on a daily basis. Advising on business operations can include issues such as revenue and expenditure trends, financial commitments, and future revenue expectations.

The accountant also analyzes financial data to resolve certain discrepancies and irregularities that may arise. Recommendations may also involve developing efficient resources and procedures while providing strategic recommendations for specific financial problems or situations.

Financial Report Preparation

Accountants typically prepare financial statements that may include monthly and annual accounts based on the financial information that is compiled and analyzed. The preparation of financial management reports can include accurate quarterly and year-end closing documents. Reports compiled may be used in connection with the continual support and management of budgetary forecast activities.

The financial reports may be used by a financial director or officer for the development, implementation, and operation of a company’s financial software and systems, such as Hyperion, Excel, and CODA Financial Management.

Regulatory and Reporting Compliance

An accountant may also be responsible for ensuring that all financial reporting deadlines are met, internally and externally. For example, quarterly, semi-annual, and annual reports all have specific deadlines, as well as some tax implications. Monitoring and supporting taxation issues and filings can also be included in the role of an accountant. The accountant also usually coordinates the audit process by assisting with financial data preparation.

External Business Affiliations

Often, accountants must work with financial professionals from the four major fields of the industry: public, management, internal auditing, and government accounting. Accountants may provide data to a public accountant, who acts as a consultant, auditor, and tax service professional.

Corporations, nonprofits, organizations, and governments use management accountants to record and analyze the financial information of the businesses in which they are employed. They usually advise company executives, creditors, stockholders, regulatory agencies, and tax personnel. Accountants may also work with government officials who are examining and maintaining the financial records of the private business for whom an accountant is employed in connection with taxation and government regulations.

What is an IT Audit?

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An information technology audit, or information systems audit, is an examination of the management controls within an Information Technology (IT) infrastructure. The evaluation of obtained evidence determines if the information systems are safeguarding assets, maintaining data integrity, and operating effectively to achieve the organisation’s goals or objectives. These reviews may be performed in conjunction with a financial statement audit, internal audit, or other form of attestation engagement.IT audits are also known as “automated data processing (ADP) audits” and “computer audits”. They were formerly called “electronic data processing (EDP) audits”.An IT audit is different from a financial statement audit. While a financial audit’s purpose is to evaluate whether an organization is adhering to standard accounting practices, the purpose of an IT audit is to evaluate the system’s internal control design and effectiveness. This includes, but is not limited to, efficiency and security protocols, development processes, and IT governance or oversight.Installing controls are necessary but not sufficient to provide adequate security. People responsible for security must consider if the controls are installed as intended, if they are effective in case any breach in security has occurred and, if so, what actions can be done to prevent future breaches. These enquiries must be answered by independent and unbiased observers. These observers are performing the task of information systems auditing. In an Information Systems (IS) environment, an audit is an examination of information systems, their inputs, outputs, and processing.The primary function of an IT audit is to evaluate the systems that are in place to guard an organization’s information. Specifically, information technology audits are used to evaluate the organization’s ability to protect its information assets and properly dispense information to authorized parties.
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