The Federal Tax authority (FTA) operates using the Tax Procedures law that permits the FTA to assess payable taxes, tax audits, determine tax evasion and issue administrative penalties. These tax assessments as stated can result in a decision to make the taxpayer pay penalties pertaining to a particular transaction or tax period.
1. HOW CAN I RESOLVE A
TAX DISPUTE IN UAE?
https://farahatco.com/blog/how-can-i-resolve-tax-dispute-in-uae/
2. Int.
• The FederalTax authority (FTA) operates using theTax Procedures law that
permits the FTA to assess payable taxes, tax audits, determine tax evasion and
issue administrative penalties.These tax assessments as stated can result in a
decision to make the taxpayer pay penalties pertaining to a particular transaction
or tax period.
3. Reasons for possible FTA penalties can
include:
• The person not being registered as required by law.
• Incorrect tax returns submitted.
• Failing to submit a tax return.
• The person pays some tax but not all arousing the suspicion of potential tax evasion.
• Intentionally failing to settle payable tax or penalty.
• Making an intentional understatement value.
• Submitting falsified information or incorrect documents to FTA.
• Withholding documents instead of submitting to the FTA.
• Embezzling documents or materials in the FTA’s possession.
• Purposefully obstructing FTA personnel from performing their duties.
• Before the taxpayer can dispute the FTA fines it is required that they should pay all the FTA penalties issued.The
taxpayer can pay using E-Dirham, BankTransfer or Credit card and once paid can proceed with their tax dispute
resolution process.
4. Method to resolve theTax Dispute.
Step 1: Application for Reconsideration.
The taxpayer starts by submitting an ‘Application for Reconsideration’ directly to the FTA.
For this to be valid:
• The submission has to be made within 20 business days of the FTA’s decision (shown on
the FTA’s decision notification)
• Legitimate reasons why the decision should be reconsidered must be provided by the
taxpayer. Legislative references should also accompany these reasons.
• The submission to the FTA to be inArabic as English not accepted.To application should
be submitted through the FTA public website.
• With all information correctly submitted the taxpayer will get the verdict within 25
business days from receipt of the application.
5. Step 2:Tax Disputes Resolution Committee(s)
(TDRC)
• In the event of the taxpayer and the FTA not reaching an agreement the next
option open to the taxpayer involves submitting an objection to aTax Disputes
Resolution Committee (TDRC.)ThisTDRC operates outside the jurisdiction of the
Ministry of Finance and chaired by judges governed by the Cabinet and Ministry of
Justice.
6. To do make this objection to theTDRC
the following steps must be taken:
• All taxes and penalties to date must be paid.
• The taxpayer’s ‘Application for Reconsideration’ should be in the possession of the FTA.
• The objection needs to be made within 20 business days.
• A completely filled outTDRC Objection Form.
• All supporting documentation such as:
• Proof of the original FTA decision
• The ‘Application for Reconsideration’ submitted to the FTA
• Responses given and
• Evidence of payment of all taxes and penalties born from the FTA decision
• Should be Included.
TheTDRC will then consider and decide on the matter within twenty days.They can extend this
time in certain cases.
7. Step 3: Judicial Appeal
• Amounts less than 100,000AED are considered as final rulings. If the amount
exceeds 100,000AED an appeal can be made in the Federal courts of Abu Dhabi
within 20 business days of the decision from theTDRC.The cases are heard in the
courts of Abu Dhabi since the courts Dubai and Ras Al Khaimah do not use the
Federal court system.
