Economic Substance Regulations 

9/20/2021
Economic Substance Regulations Appeal Guide For Administrative Penalties

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

Contact Us

Markus Susilo
Markus Susilo
Partner, Tax Advisory
Michel-Ruitenberg
Michel Ruitenberg
Director – Tax Advisory