Challenge:
One of our clients – a medium-sized industrial company operating in the construction materials sector – faced a serious issue when the Income and Sales Tax Department conducted a surprise audit. The review revealed unjustified discrepancies in previous tax returns. This situation exposed the company to potential penalties exceeding 35,000 Jordanian Dinars.
Approach:
After taking on the case, Creative Edge Consultations team conducted a comprehensive review of all financial and tax returns for the past three years, working directly with the company’s accounting team. The procedures included:
- Re-auditing accounting records and entries
- Preparing a formal explanatory memorandum supported by required data and documentation
- Direct negotiation with the tax assessor and submitting a legally documented objection
Results:
Our efforts resulted in:
- Reducing the tax claim from over 35,000 Dinars to less than 5,000 Dinars
- Scheduling the remaining amount in convenient installments
- Training the internal team on tax compliance mechanisms to prevent recurrence of the problem
This professional approach helped the company avoid significant penalties and improve its compliance system to ensure better financial stability in the future.
