UAE: Tax Procedures in Tax Disputes Amended

On 1 November 2021, the UAE Cabinet issued Federal Decree-Law No. 28 of 2021 bringing key changes to the Federal Tax Procedures Law concerning Tax Disputes Resolution.

Tax Disputes Resolution's Timelines

• 20 to 40 business days for filling reconsideration applications, objections, and appeals.
• 40 business days for reviews of reconsideration requests and issuance of decisions by the FTA.
• 5 business days from the date of issuance of the decision for the FTA to notify the application of its decision and its reasoning.

Tax Disputes Resolution Court's (TDRC) Enforcement of Decisions

• TDRC's decisions on disputes over AED 100,000 will be treated as executory instruments if not appealed before the Competent Courts within 40 business days from the date of notification of the objection's outcome.

Requirements for the Submission of Objections and Appeals.

• Admissibility of objections before the TDRC is subject to being filed within 40 business days from the date of being notified of a reconsideration decision by the FTA.
• 50% of the penalties will now have to be paid through either cash transfer or bank guarantee.

Special Waiver Committee is Granted Additional Powers

• Cases involving waiver, refund and payment of administrative penalties will now be reviewed by a Special waiver committee.

Key Takeaways

Such developments emphasize the necessity for taxpayers to ponder carefully their strategies when pursuing tax challenges before the TDRC and the Federal Courts in addition to seeking professional help to assess their current tax position.