The UAE Federal Tax Authority (FTA) has clarified the new administrative penalties and detailed the following violations, which are specified in table 1 on violations and administrative penalties related to the implementation of federal law No. 7 of 2017 on tax procedures:
- violation 9: failure of the taxable person to settle the payable tax stated in the submitted tax return or voluntary disclosure, or the tax assessment he was notified of, within the timeframe specified in the tax law;
- violation 10: submittal of an incorrect tax return by the taxpayer;
- violation 11: submittal of a voluntary disclosure by the person/taxpayer with errors in the tax return, tax assessment or refund application (according to article 10(1) and 10(2) of the tax procedures law);
- violation 12: failure of the person/taxpayer to voluntarily disclose an error in the tax return, tax assessment, or refund application (pursuant to article 10(1) and 10(2) of the tax procedures law) before being notified by the authority that it will be subject to a tax audit; and
- violation 14: failure of the taxpayer to calculate tax on behalf of another person where the taxable person is obliged to do so under the tax law.
In addition, the FTA clarifications specify that the mechanism to determine the imposition date of some penalties is as follows:
- where the new month includes a date corresponding to the date the penalty was originally imposed on, the date on which the penalty will be imposed in the new month is the date it was originally imposed the first time; and
- where a month does not include a date corresponding to the date the penalty was originally imposed on, the date on which the penalty will be imposed for such month will be the first day of the following month. However, for the month following the month which did not include a corresponding date, the penalty shall be imposed on the date corresponding to the date the penalty was originally imposed.