The Council of Ministers issued two decisions to redefine the administrative fines that were imposed for violating tax laws before the date of June 28, 2021 in the country
The Council of Ministers issued two decisions to redefine the administrative fines that were imposed for violating tax laws before the date of June 28, 2021 in the country, to equal 30%/ of the total unpaid fines on that date in the event that some conditions are met, and to determine the controls and procedures related to requests for installments, exemptions and refunds in whole or in part. For administrative fines imposed on any person for violating the provisions of the Tax Procedures Law or tax laws.
According to the first decision, the Federal Tax Authority determines the administrative fines imposed on the registrant before the date of June 28, 2021, which have not been paid, to be equal to 30%/ of the total of those unpaid fines, in the event that the registrant pays the full tax payable up to a maximum on December 31 2021, and the registrar will pay 30% of the total unpaid administrative fines, up to a maximum of December 31, 2021.
In the event that the Registrant does not pay the full tax payable or 30%/ of the total of those unpaid administrative fines up to a maximum of December 31, 2021, the Registrant can fulfill the two conditions up to a maximum of December 31, 2022.
In accordance with the decision whose provisions came into force on January 01, 2022, the Federal Tax Authority will determine the procedures necessary to implement these provisions, bearing in mind that the administrative fines imposed on the registrant will be re-established with a maximum of 30 working days from the previously specified dates.
Controls and procedures related to installment requests, exemption, and full or partial response.
According to the second decision, which will come into force as of the first of next March, the committee formed by a decision of the Chairman of the Authority’s Board of Directors approves the payment of administrative fines in installments if four conditions are met; The first is that the request for installment is in respect of unpaid administrative fines only, and the second is that the administrative fines required to be paid in installments for a person shall not be less than 50,000 dirhams. The committee formed by the decision of the Chairman of the Federal Tax Authority Board of Directors may make any amendment to that amount.
The third condition is that the administrative fines required to be paid in installments shall not be in dispute before the Tax Dispute Resolution Committee, the competent courts, or any other bodies concerned with considering tax objections or appeals in accordance with the mechanism stipulated in the Federal Law on Tax Procedures and its amendments, with the exception of objection through The reconsideration mechanism, as the fourth condition is that there is no tax payable on the person for the tax period in question.