Taxation is still fairly new in the United Arab Emirate and if you will tell yourself the truth, you have no clue as to what tax is all about and how to do the filing. The truth is, filing taxes is a complicated process. So if you are like most smart business owners, you have already hired a tax consultant to handle all aspects of filing your taxes.
But if you are still looking for signs to convince you that you need to hire one, here are some red flags or indications that you need to hire a tax consultant as quickly as possible.
You Don’t Have Time To Do It Yourself
Running a business requires time and as a business owner or manager, time is a resource you don’t want to toil with. Tax management, on the other hand, is a time-consuming process. Think of organizing invoices, tracking every transaction, and preparing the necessary documents that go with it.
However, it is a mandatory part of running a business but you will fare better allocating your time to doing things that you are better at. In addition, hiring a tax consultant can help to ensure that these important part of your business does not suffer.
You Don’t Understand the New Tax Laws
While tax laws in the United Arab Emirates are not that complicated, many business owners are still not conversant with these laws and the implications on their businesses. Ignorance of these laws is no excuse if you are found to have violated any of the laws.
If you are yet to fully understand these tax laws and you don’t have an in-house team of professional tax accountants, you should consider hiring a trusted tax consultant.
A good tax consultant will not only save thousand in terms of fines but can also help you in filing for claims and exemptions.
Your Business Is Brand New
Starting a new business often come with a lot of responsibilities and managing tax can be an unnecessary task. Not to mention that your regular accountant may not be knowledgeable in managing taxes for startup.
Alternatively, you can hire a tax accountant(s) but that will leave you with one or two more employees to manage and additional running costs.
On the other hand, a tax consultant will help you ensure that your startup’s taxes are properly taken care of. This will help you avoid penalties that can cripple your business. In most cases, a good tax consultant may be able to identify tax exemptions that your business can benefit from, saving you money in the process.
You Don’t Want Too Many Staff to Manage
As stated earlier, employee management comes at a cost and hiring additional staff to handle your company’s taxes will only increase the cost and stress involved. And to be safe, you should refrain from assigning tax-related tasks to the front desk staff and people involved in handling your day-to-day invoices and payroll. While some may have basic accounting skills, they may not be experts at handling taxes.
If you desire to maintain an optimum number of employee, tax consultants will ensure that the tax and accounting needs of your business are handled professionally.
If You Owe Taxes in the Past
If you are owing taxes and don’t know how to go about squaring up the balance with tax authorities, a professional tax consultant can help you out.
You can do it yourself or get your internal team to do it but you risk overpaying, which will be detrimental to your business or underpaying, which can land you into trouble.
A professional tax consultant will go through the book to know how much you owe and check for possible exemptions or deductions.
Change in Structure or Leadership
If there is a change in your company’s management structure, it is necessary that you hire a professional tax consultant to go through the books.
For example, if you recently absorbed a smaller business, a professional tax consultant will help you establish your standing with regards to taxes.
In the way, if there is a change in leadership, a tax consultant will help you establish the business’s tax standing or devise more efficient ways of filing taxes.
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