FTA has published the Tax procedures public clarification (TAXP008)

UAE, 13 November, 2024 : The Federal Tax Authority (FTA) has released a Public Clarification Tax Assessment Reviews - TAXP008  detailing an optional mechanism for disputing tax assessments and administrative penalties, introduced under Federal Decree-Law No. 28 of 2022, as amended. This mechanism allows individuals and entities to request a tax assessment review before submitting a reconsideration request.

Purpose and Scope

The new process provides an opportunity for taxpayers to challenge tax assessments and associated administrative penalties based on errors, such as incorrect application of tax laws, computational inaccuracies, or procedural flaws during audits. The FTA ensures that review requests are handled by officials not involved in the initial audit, maintaining impartiality.

Eligibility and Procedure

Taxpayers may request a review if they have substantial grounds, such as technical or procedural errors, and must do so within 40 business days of notification. The FTA will then assess the application and issue a decision within 40 business days, with possible extensions communicated to the applicant.

Limitations and Next Steps

If new evidence needs to be presented or if a taxpayer disagrees with the FTA's review outcome, submitting a reconsideration request remains an option. The clarification emphasizes that review requests cannot be made if a reconsideration has already been filed.

Implications

This mechanism is part of the FTA's broader efforts to enhance transparency and taxpayer rights. The clarification is in line with Federal Decree-Law No. 28 of 2022 and Cabinet Decision No. 74 of 2023, reinforcing procedural compliance.

Source : www.tax.gov.ae