Federal Tax Authority Public Clarification of Tax Assessment Review

Tax assessment review is a process that allows businesses to reach out to the Federal Tax Authority in case of any dispute in tax audit reports. This process ensures transparency in taxation. 

FTA Legislations that allow Businesses to make Tax Assessment Review Requests 

The following FTA laws allows businesses to make tax assessment review requests:

• The Federal Tax Authority under Clause 1 of Article 28, allows a taxpayer to file a tax assessment review application in case of any penalties applied to them. 
• The Federal tax Authority has defined the deadline for the taxpayer to file for an application i.e., one can submit the application with in forty days only after the audit report has been provided by the federal tax authority. This forms the basis of the Clause 2 of Article 28. 
• Essentially, under Clause 5 of Article 28, a taxpayer cannot file for a review application if they have applied for the reconsideration request already.
• According to the Article 46 Clause 1, Federal Tax Authority is not eligible to call for an audit to any company or business except for the special cases as described in the Clause 2,3,6,7 of the Article 46. 
• The Federal Tax Authority has the opportunity to extend the timeline of submitting the tax assessment review application. 
• The deadline to the Federal Tax Authority for completion of the tax assessment review process and made a final decision is forty days and is supported by the Clause 3 of Article 28. 
• If a person is unsatisfied with the results of the review assessment, Article 28 provides them the chance to apply for the Reconsideration Request which must be submitted within 40 business days. 
• A person is not able to file for the Reconsideration Request if the person has already filed for the tax assessment review application asper the Article 29 Clause 3.

What are the Rights of a Taxable Person 

The Federal Tax Authority has described the rights of bushiness as follows:

• Article 28 under Clause 3 describes the right of the businesses and companies to get a prior notice before the initial audit. 
• Article 28 under its two Clauses 2 and 3 calls for the Compliance with the deadlines in order to ensure on time decisions. 
• The taxpayer is allowed to extend the deadline of the tax application submission of they have authenticated reasons behind doing that which is supported under the Clause 3 of Article 25. 

Federal Tax Authority under the laws and regulations sustain the transparency and compliance throughout the business landscape around the UAE. 

Federal tax authority with the public Clarification has sustained and clarified all the laws and regulations regarding tax assessment review application so that businesses can sustain well with the laws and regulations so that businesses can focus on their tax systems. 

Frequently asked questions 

1.  What is the tax assessment time limit for FTA?
As per the article 46 Clause 1 Federal Tax Authority is eligible to perform the audit on only 5 years of Taxation period and not more than that provided that there exist some special conditions. 

2. How much time does a taxpayer have to offer tax assessment review application? 

One can apply for the assessment review application within 40 days since they receive the audit report from the federal tax authority.

3. I didn’t receive the notification on my registered address can I file for application? 

Yes, FTA provides you the liability to apply for the assessment review application. 

What can be the possible replies of Federal Tax Authority as a result of application? 

Depending upon the credibility of your evidences, federal tax authority can reject or uphold the previous decision.