Cabinet Resolution Regarding the Administrative Penalties Imposed for Violations of Tax Laws in the State

Cabinet Resolution Regarding the Administrative Penalties Imposed for Violations of Tax Laws in the State

The last update on this law was listed on 28 Apr 2021

Issued Date

24 Sep 2017

Effective Date

28 Sep 2017

Official Gazette Date

28 Sep 2017

Official Gazette No

622

Legislation State

Active

Regulation Table

1

Legislation Amendments

2

Disclaimer: Every effort has been made to produce an accurate and complete English version of this website/ legislation. However, for the purpose of their interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text will prevail

Index
Index
Article (1) Definitions
Article (2) Scope of Application
Article (3) General Provisions
Article (4) Amendment of Administrative Penalties
Article (5) Objection
Article (6) Issuance of Executive Resolutions
Article (7) Entry into Force
Article (8) Publication
Cabinet Resolution No. (40) of 2017 Regarding the Administrative Penalties Imposed for Violations of Tax Laws in the State

The Cabinet:
− Having reviewed the Constitution,
− Federal Law No. (1) of 1972 Regarding the Competencies of Ministries and Powers of Ministers, as amended,
− Federal Law No. (1) of 2011 Regarding the Public Revenues of the State,
− Federal Decree by Law No. (8) of 2011 Regarding the Rules for the Preparation of the General Budget and the Final Account,
− Federal Law No. (14) of 2016 Regarding Administrative Violations and Penalties in the Federal Government,
− Federal Decree by Law No. (13) of 2016 Regarding the Establishment of the Federal Tax Authority,
− Federal Law No. (7) of 2017 Regarding Tax Procedures,
− Federal Decree by Law No. (7) of 2017 Regarding Excise Tax,
− Federal Decree by Law No. (8) of 2017 Regarding Value Added Tax (VAT), and
− Upon the proposal of the Minister of Finance, and the approval of the Cabinet,
Hereby resolves as follows:

Article (1) Definitions

For the purposes of implementing the provisions of this Resolution, the following terms and expressions shall have the meanings assigned to each of them, unless the context requires otherwise:
State: The United Arab Emirates.
Minister: The Minister of Finance.
Authority: The Federal Tax Authority.
Chairman: The Chairman of the Board of Directors of the Authority.
Tax Law: Any federal law pursuant to which a federal tax is imposed.
Administrative Penalties: Monetary amounts imposed on a Person by the Authority for violating the provisions of Federal Law No. (7) of 2017 Regarding Tax Procedures or the Tax Law.
Person: A natural or legal person.
Business: Any activity conducted on a regular, continuous and independent basis by any Person and in any location, such as industrial, commercial, agricultural, professional, vocational, service, or excavation activities or any activity related to the use of tangible or intangible properties.
Taxable Person: A Person who is subject to Tax under the provisions of the relevant Tax Law.
Tax Return: The information and data specified for Tax purposes and provided by a Taxable Person in accordance with the form prepared by the Authority.
Tax Registration: The procedure by which a Taxable Person or the Legal Representative thereof registers for Tax purposes with the Authority.
Registrant: The Taxable Person holding a Tax Registration Number.
Legal Representative: The manager of a company, the guardian, custodian, or curator in respect of persons lacking or having diminished legal capacity; the bankruptcy trustee appointed by the court for a company in a state of bankruptcy, or any other person legally appointed to represent another Person.
Payable Tax: The Tax that has become payable to the Authority.
Tax Assessment: A decision issued by the Authority relating to the Payable Tax or the refundable tax.
Assessment of Administrative Penalties: A decision issued by the Authority on due Administrative Penalties.
Notification: Notifying the concerned person, their tax agent, or Legal Representative of the decisions issued by the Authority through the means stipulated in Federal Law No. (7) of 2017 Regarding Tax Procedures and its Executive Regulations.
Voluntary Disclosure: A form prepared by the Authority through which the taxpayer notifies the Authority of any error or omission in the Tax Return, Tax Assessment, or tax refund application, in accordance with the provisions of the Tax Law.

Article (2) Scope of Application

Administrative penalties shall be imposed for the violations listed in Schedules No. (1), (2), and (3) attached to this Resolution.

Article (3) General Provisions

The imposition of any administrative penalty under the provisions of this Resolution shall not result in exempting any person from the liability to pay the Tax Due in accordance with the provisions of the federal tax laws.

Article (4) Amendment of Administrative Penalties

The Cabinet shall be competent to make any amendments to the Administrative Penalties stipulated in this Resolution, whether by addition, deletion, or modification.

Article (5) Objection

A Person may object to the Administrative Penalties imposed thereon in accordance with the procedures stipulated in Federal Law No. (7) of 2017 Regarding Tax Procedures.

Article (6) Issuance of Executive Resolutions

The Minister shall issue the necessary resolutions for the implementation of the provisions of this Resolution.

Article (7) Entry into Force

The provisions of this Resolution shall enter into force from the date of its issuance, with the exception of the following:
1. Schedule (2) regarding the administrative violations and penalties related to the implementation of Federal Decree by Law No. (7) of 2017 Regarding Excise Tax, attached to this Resolution, shall enter into force from 1 October 2017.
2. Schedule (3) regarding the administrative violations and penalties related to the implementation of Federal Decree by Law No. (8) of 2017 Regarding Value Added Tax (VAT), attached to this Resolution, shall enter into force from 1 January 2018.

Article (8) Publication

This Resolution shall be published in the Official Gazette.

To view tables and schedules,

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