Decoding Taxation Challenges: A Guide to Appeals with the FTA in the UAE

Navigating Taxation Challenges: Understanding Your Options for Appeals with the FTA in the UAE

In the complex landscape of taxation, it's not uncommon for taxpayers to find themselves at odds with tax assessment decisions. The Federal Tax Authority (FTA) in the UAE plays a pivotal role in ensuring compliance with the Tax legislation. 

The FTA introduces various measures to inform and update the public with recent changes or amendments to the legislation, publishes public clarifications or guides explaining the tax treatment to be followed, and conducts webinars or seminars to educate on taxes. Even when such measures are implemented there are occasions when the taxpayer may misunderstand the provisions of the Law adopt different tax treatment or fail to ensure compliance at some transactions. 

When such non-compliances are identified, the FTA may issue a decision against the taxable person to rectify the non-compliance and may charge penalties for the mistake or omissions.  When such decisions are issued by the FTA, taxpayers need to understand their options for recourse. Today, we shed light on the immediately available option of appealing tax assessment decisions through the Tax Assessment Review Request.

Importance of Compliance, Self-Assessments, and Staying Updated with Tax Treatments

The FTA as the governing or administrative body overviewing the Tax procedures and compliance, has the authority to review or assess the taxpayer to ensure compliance and can issue administrative penalties for any non-compliance with Tax legislation. 

This underscores the importance of adhering to correct tax treatments and staying updated with changes in VAT and other tax laws. At this point, it is also recommended to do self-assessments or reviews of VAT returns and tax treatment adopted, which may reveal any mistakes or misinterpretations that can lead to additional tax liabilities and administrative penalties.

Submitting a Reconsideration Request through Emaratax Portal:

Previously, taxpayers had to navigate the EmaraTax Portal to submit a reconsideration request to the FTA. Until the Tax Assessment Review Request was introduced, this was the first option to appeal against the penalty or any decision from the FTA. It involved detailing objections to penalties or additional taxes in writing through the EmaraTax Portal and should be submitted within 40 business days. The FTA would then review the application and issue a decision, either accepting the reconsideration or affirming the original order.

Email Your Tax Assessment Review Requests:

FTA has now introduced a simpler option before proceeding with an appeal through a reconsideration request. Under the new feature, taxpayers have the convenience of submitting a Tax Assessment Review Request via email. A taxable person can simply send an email to assessmentreview@tax.gov.ae, outlining reasons for reassessment within 40 business days from the notification of administrative penalties. This option can be done by drafting an email with the reasons for the appeal and explaining the justification for the transactions. This process is designed to ease the burden on taxpayers and their tax agents by easily reaching out to FTA. 

Submit Essential Documents for Your Tax Assessment Review Request

When submitting a Tax Assessment Review Request, it is important to submit all required supporting documents and information to the FTA to reassess or evaluate the decision. So ensure to include pertinent documents which are the proof of factual and legal grounds for appeal, communication received from the FTA like tax assessment or audit decisions, and penalty notifications.
Strategic Steps: Timely Requests and Considerations for FTA Assessment Decisions

A taxable person who has received any assessment decision from the FTA may choose to submit the tax assessment review request by sending an email to the FTA within 40 business days of the receipt of such notification. FTA may review the email and the justification provided and may take up to 45 business days to inform the decision on the assessment review. It's important to note that a reconsideration request cannot be submitted simultaneously with a tax assessment review. However, after receiving a decision on the tax assessment review request, the taxpayers can opt to submit a reconsideration request if necessary.

Conclusion:

Navigating tax assessment decisions can be daunting, but understanding the avenues for appeal is crucial for taxpayers in the UAE. With the introduction of the Tax Assessment Review Request via email, the process has become more accessible and efficient. By providing clear documentation and adhering to timelines, taxpayers can effectively present their case to the FTA for review.

For Your Tax Related Queries Contact

CA. Ajil Varghese
Senior Manager - Tax
M: +971564709920   E: ajil@emiratesca.com