audit services in dubai
  • Adminstrative penalties which may up to 3 time of amount of tax involved
  • Tax evasion penalties which may extended to 5 times of amount of tax involved
    • Administrative Penalties (Not less than AED 500 and not more than 3 times the amount of tax for which the penalty was levied)
      • Administrative penalties are intended to address non-compliance, and encourage compliance.
      • The FTA has the power to waive or reduce penalties at its discretion (e.g. taxable person has a reasonable excuse for the error).
      • Few examplesof administrative violation:
        • If the person conducting a business fails to keep the required records and other information;
        • If the person conducting a business fails to submit the data, records and documents related to tax in Arabic language when requested by FTA;
        • If the taxable person fails to submit a registration application within the period required.
    • Tax evasion penalties (Up to 5 times the relevant tax at stake)
      • The FTA can issue penalties for tax evasion
      • Tax evasion is where a person uses illegal means to either lower the tax or not pay the tax due, or to obtain a refund to which he is not entitled under law.
      • The imposition of a penalty under tax law does not prevent other penalties being issued under other laws
      • Few examplesof instances of tax evasion:
        • ” aria-hidden=”true”>Where a person deliberately provides false information and data and incorrect documents to the FTA;
        • Where a person deliberately conceals or destroys documents or other material that he is required to maintain and provide to the FTA.

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