Public Clarification TAX P008: Tax Assessment Review
by Reina Consulting | Mar 15, 2025
Effective 01 March 2023, Federal Decree Law No. 28 of 2022 on Tax Procedures was introduced after revoking the existing Federal Decree Law No.7 of 2017 on Tax Procedures. The new Law introduced an additional provision relating to “Tax Assessment Review Request”
Article 28 is introduced which includes a provision whereby a taxpayer can request for a review of a tax assessment order and penalties thereof (in whole or part). The idea here is to enable the taxpayer to seek an additional review for an assessment issued by FTA, instead of opting for litigative procedures.
The UAE Federal Tax Authority (FTA) released a document on 06 December 2023, which provided a high-level detail on the process and the methodology of submission for such review process. The document is now supported by Pubic Clarification on Tax Procedures P008 which provides further details on the review request process. The key aspects are:
| Aspects |
Particulars |
| Conditions for submission of review request |
- A review request for tax assessment order and related penalties can be submitted if the person can prove that FTA did not follow correct procedures or made an error in calculating the tax and penalties based on the information and documents the person made available during the tax audit
- The term during the tax audit refer to the period from the start of receipt of audit notification to the date the tax assessment and penalty order is issued
- It is important to note that the review process will be conducted by an FTA team which was not involved in the original audit/assessment. Further, no new document can be submitted at this stage
- It is important to note that a review request cannot be placed if a reconsideration request is already placed by the person
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| Timeline for Submission
|
- The request must be submitted within the 40 business days of issuance of Tax Assessment order by the Authority
- An extension may be granted by the Authorities upon request provided there are valid reasons for not being able to submit within 40 business days
- Upon submission, the Authority may take up to 40 business days to issue a decision
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| Mode of Submission |
- The request shall be submitted online through an email on
- AssessmentReview@tax.gov.ae
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| Documents to be submitted |
- Tax assessment and penalty notification
- Documentary proof to support the factual and legal grounds on which the request is based
- Tax audit results notification
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| Other relief prcoedures in Law
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- In case of an adverse assessment order issued by the FTA for a tax audit or assessment review, a tax registrant has following subsequent options to seek a reversal of the liabilities/penalties in cases not related to tax evasions:
1. Reconsideration request
2. Tax Dispute Resolution Committee (TDRC)
3. Appeal before Court
- The Law provides for other specific cases (such as death, illness, malfunction of authority’s system etc) under which, upon application, the Authority may decide to allow payment of liability/penalty through instalment or waive or refund the penalties as well. The instalment/waiver/refund is granted only if the liability/penalty is not subject to any dispute or appeal
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The tax implications on any transactions or business depend on the facts and circumstances of each case. Accordingly, globally, there are always litigations between the taxpayer and authorities due to analysing the facts differently. Measures like review requests, reconsideration etc offer an opportunity to taxpayers to seek relief in case of any oversight or misinterpretation by the Authorities
It is important to note such admin procedures are equally important along with technical matters for overall tax compliances and when applied effectively create greater tax efficiency in Businesses
