Economic Substance Regulations 

The Federal Tax Authority (“FTA”) has issued a user guide to assist companies in submitting appeal request related to penalty imposed under Economic Substance Regulations (“ESR”).

GROUND FOR APPEAL 

Companies may appeal to a decision by the FTA to impose an administrative penalty on the following grounds: 

• It did not commit the violation.
• The administrative penalty imposed is not proportionate to the violation.
• The administrative penalty imposed exceeds the limits under the ESR laws.

PROCESS 

• Imposition of penalty by the FTA
• Submission of appeal on MOF portal: 
  • Reason for appeal; 
  • Supporting documents
• Providing additional supporting documents if required by the FTA
• Review of appeal request by the FTA
• Issue of final decision by the FTA

TIMELINES

Submit For Appeal

• 40 working days from the imposed date of the fine

Submit Additional Document Request by FTA

• 5 working days from the date of requesting documents

Issues a Decision of the Appeal

• 40 working days from the date of meeting all requirement

Inform Licensee of the Decision

• 5 working days from the date of issuance of the decision

Final Period to Pay the Fine

• 40 working days from date administrative penalty is levied