The Inland Revenue Department has clarified that full tax audits have not been stopped and are still being carried out under a risk-based model. An annual audit plan has already been implemented, and all audits are conducted in accordance with legal procedures. Multinational companies, banks, financial institutions, and firms approaching the four-year statutory audit deadline are prioritized as high-risk entities. Each year, roughly 2% of taxpayers are selected for comprehensive audits, which may be conducted anytime within four years under the Income Tax, VAT, and Excise Acts. These audits are triggered by mismatched declarations, suspicious transactions, complex business structures, or other risk flags to ensure efficient and targeted oversight.
