The UAE Federal Tax Authority (FTA) has issued Public Clarification TAXP008 on Tax Assessment Reviews, outlining an optional process for challenging tax assessments and administrative penalties, as introduced by Federal Decree-Law No. 28 of 2022, as amended.
Federal Decree-Law No. 28 of 2022 on Tax Procedures and its amendments (“Tax Procedures Law”) introduced a new optional mechanism for persons to dispute tax assessments and related administrative penalties, before submitting a request for reconsideration.
This Public Clarification clarifies the instances in which a person may submit a request for a tax assessment review.
Eligibility and Procedure
Taxpayers can request a review if they have valid reasons, such as technical or procedural errors, and must submit the request within 40 business days of receiving the notification. The FTA will evaluate the application and provide a decision within 40 business days, with any extensions notified to the applicant.
Summary
The purpose of the tax assessment review is to provide a process whereby a person can request a review of the tax assessment (or part thereof) as well as the related administrative penalties assessment by independent FTA’s officials (i.e. FTA’s officials that were not part of the team that conducted the tax audit) based on the facts and evidence provided by the person as well as the audit procedures conducted during the audit by the FTA.
A person can request a tax assessment review if the person has reasonable grounds to believe that there were technical errors relating to the incorrect application of the relevant tax legislation or tax treaties, calculation errors or errors in audit procedures that led to an incorrect determination of tax differences and administrative penalties.
If the person wishes to introduce new information or additional documentary evidence/facts that were not presented to the FTA auditors during the audit process, the tax assessment review mechanism is not the appropriate dispute channel. In such instances, the person may apply for reconsideration.
