The VAT vs. Corporate Tax Mismatch
"What happens when your 2024 VAT filings don't match your 2026 Corporate Tax declaration?"
The Scenario
An e-commerce group reported high exempt supplies for VAT in 2024. In 2026, when filing Corporate Tax, the FTA's automated systems flag that those same revenue streams are being treated as 'Taxable Income' to claim expenses, creating a reconciliation gap.
Statutory Penalty
Automatic audit trigger. Penalties for 'Error Correction' (Voluntary Disclosure) can range from 5% to 40% of the tax difference, plus late payment interest.
Reference: Tax Procedures Law (Federal Decree-Law No. 28)
The Arakan Forensic Fix
Arakan's 'Cross-Tax Reconciler' automatically syncs VAT history with CT projections, flagging discrepancies before you submit, ensuring your 'Tax DNA' is consistent across all federal filings.
- Real-time Monitoring
- Audit-Ready Logs
- Statutory Mapping