In a significant development, voluntary disclosures made by UAE based businesses on their actual VAT obligations will be charged with late payment penalties, reaching up to 300 per cent of the dues.
Not just that, the penalties will apply from the due date of the tax return – and not from the date of voluntary disclosure. This is according to a ruling by the UAE Federal Supreme Court judgment on an appeal filed by the UAE Federal Tax Authority.
“Based on this judgment, taxpayers submitting voluntary disclosures could be subject to penalties of up to 356 per cent of the tax due,” says an update on the ruling issued by the law firm firm in the UAE.
“The Federal Supreme Court’s judgment reverses the position that had been established over the past 18 months.”
During this period, penalties imposed were limited to administrative ones. But now, “the Federal Supreme Court takes the view that voluntary disclosures are merely amended tax returns in nature.
“This is a major development in the UAE tax landscape, as the judgment may affect upcoming decisions to be issued by the various Tax Dispute Resolution Committees and Federal Courts.
“We expect that this judgment will have a significant impact on critical business sectors involved in transactions.”
If you have decided to engage an accountant and would like to discuss your requirements with us, get in touch!
Here at Alya Auditors we cover a variety of different business needs, from basic accountancy and payroll to business advisory and development. We are primarily focused on business growth and so we tailor our solutions based on your individual business needs.
Our Chartered Accountants are all either FCA,ACCA or ICWA members and our accounting team of well qualified and experienced hands.
We provide accounting services in Dubai, Sharjah, Ajman, Fujairah, Abu Dhabi, and Ras Al Kahaimah for ambitious local businesses as well as for businesses throughout the UAE.
Our clients also include international businesses, so we have a breadth of experience to help your business thrive.
Call our friendly team on 04876 9377 or drop an email to audit@alyaauditors.com for a further discussion.
Source : Gulf news
Don’t Let New Year Festivities Overshadow Your Corporate Tax Deadline As the year winds down and holiday celebrations take center stage, businesses must stay mindful
What Makes Alya Auditors One of the Top Auditing Firm in Dubai? In Dubai’s highly competitive business environment, companies must align with stringent financial regulations
Truly, let us know what service you are looking for and hence we can get back to you with more details.
Definitely, Alya Auditors is the one partner you need to ensure your business is built on accurate accounting books certainly, to spearhead greater growth and wider market reach.
An association of legally independent auditing & accounting firms in the UAE
Silver Tower, Business Bay. PO Box: 41102, Dubai, UAE.
Sharjah Airport Free Zone PO Box: 120403 Sharjah, UAE.
+971 48769377
+971 52 9750690 , +971 50 522 1035
Mon – Fri : 8:30 AM – 6 PM
Saturday – 9 AM – 5 PM
Sunday – Closed
© Alya Auditors 2022 All Rights Reserved
