Having Tax Dispute with FTA – Understand the Rights & Tax Litigation Process in UAE
August 27, 2020
Tax Dispute Resolution Committee (TDRC), as the name suggests, is the dispute resolution committee that can be approached in cases where the taxpayer and the Federal Tax Authority (FTA) are not able to resolve their dispute by means of the reconsideration process.
The said committee is chaired by a member of the judicial authority and two expert members who are registered in the register of tax experts, to be appointed by the Ministry of Justice in coordination with the Minister of Justice.Conditions for submitting an objection to the TDRC
- An objection should be submitted within 20 business days from the date of notification of Authority’s decision.
- The tax and penalties that are the subject of the objection should be settled.
Note: Under no circumstances should taxpayers directly approach the TDRC without the submission of the reconsideration request to the FTA.Jurisdiction of the TDRC
The TDRC has the jurisdiction to:
- Decide in respect of objections submitted pertaining to the FTA’s decisions on applications for reconsideration.
- Decide in respect of applications for reconsideration that were submitted to the Authority, wherein the FTA has not yet made a decision (the separate time limit, in this case, has not yet notified in the law).
- Decide on the objection, the Committee’s decision of which is deemed as final, if the total amount of the Due Tax and Administrative Penalties determined as per the provisions of the law do not exceed AED 100,000.
The basis to determine the relevant TDRC is the address of the taxpayer registered with the FTA i.e., the Dubai TDRC for the Emirate of Dubai, Abu Dhabi TDRC for the Emirate of Abu Dhabi as well as for non-residents, and the Sharjah TDRC for all the other Emirates.
Note: In the case of a Tax Group, the address of the representative member shall be the basis to determine the relevant TDRC.
- The form can be downloaded from the website of the Ministry of Justice.
- The data in the form has to be filled in Arabic, that requires information with respect to the applicant, their legal representative, the FTA’s decision etc.
- The necessary documents such as the legal representative, explanatory memorandum of objection, decision of the FTA, objection to the objector, receipt of payment of the tax and/or the fines which are subject of the objection must be attached along with the form.
- The objection form along with other necessary attachments (in Arabic) in PDF format to be sent via e-mail: Tax.firstname.lastname@example.org.
- The Committee secretary, after receiving the objections and consulting the Committee members must set an appointment for consideration.
- The secretary of the Committee will notify the Authority and the objector of the date of the sessions and the decisions issued by the Committee about the objection.
The relevant TDRC will notify the concerned taxpayer about the decision within 25 business days, with the maximum extended period being 45 business days.How MB Group can help
As a Certified Tax Agent through FTA, Our team comprises tax and legal professionals who are highly experienced in interpreting statues, examining evidence and documents, assessing the merits of an individual case, developing tax technical and litigation arguments and represent the client in front of the committee.
Vipin Kumar Ahuja
Designation: Associate DirectorAbout Author:
Associate Director – Taxation (VAT, Excise & Customs)
Chartered Accountant, DISA, Dip. in IFRS.
Having over 12 years of experience in advising clients on Direct & Indirect tax and regulatory issues across India, UAE, KSA & Bahrain.
Areas of Specialization:
– Value Added Tax (VAT)
– Excise Tax
– Transfer Pricing
– Project Management
– Process Improvement
– Risk Management