In accordance with Cabinet Resolution No. (49) of 2021, the UAE Federal Tax Authority ("FTA") has published Tax Public Clarification (TAXP002), which offers comprehensive information about the most recent amendment made to the administrative penalty.
This choice has been viewed as a concession intended to benefit enterprises.auditing services This clarification will make it easier for company to reassess the penalty assessed under the previous penalty regime. FTA has the authority to reassess the sums of unpaid administrative fines imposed on taxable persons by Cabinet Decision No. 40 of 2017.
This authority comes from Cabinet Decision No. 49 of 2021. The following requirements must be met in order for the taxable person to benefit from the decrease in penalty: *Any administrative penalties that should have been imposed on the taxable person before June 28, 2021, have not been done so *The person has not made full payment of any administrative penalties that have been imposed on it before June 28, 2021 *The taxable person has additionally met the requirements listed below: By December 31, 2021,
auditing firms the taxpaying individual must ensure that all taxes are paid and received by the FTA. Before December 31, 2021, the taxpaying individual would pay 30% of the total unpaid administrative fines. If the aforementioned requirements are satisfied, the FTA will review the administrative penalties due to the person at the end of 2021 and the person will not be forced to pay the remaining portion (i.e., 70%). For instance, a taxpayer was assessed an AED 10,000 penalty by the FTA at the end of February 2021 pursuant to cabinet resolution no. 40 of 2017 and the penalty remained unpaid as of June 28, 2021. In this situation, the taxpayer will be eligible for a redetermination of penalties and will no longer be obliged to pay the remaining AED 7,000 if he pays 30% of this penalty, or AED 3,000, before December 2021 together with all the Tax payments owing on him as of December 31, 2021.
The taxpayer will be responsible for paying the full amount of penalties if the aforementioned 30% of penalties or any other taxes due are not paid before December 31, 2021. From 28 june 2021 the redetermination of penalties can be done through online E-services accounts of Tax payer If you want any clarification regarding penalties of taxes, accounting, auditing or tax related matters contact ubl auditing for expert service at an affordable rate.