January 2022 / United Arab Emirates

DP World, the leading global logistics company and provider of smart supply chain solutions, today announced the launch of its new digital compliance and revenue platform, CARGOES Customs. The platform facilitates completely paperless trade easing the flow of the customs process using innovative technology solutions, including an Artificial Intelligence driven risk engine and smart valuation. Its advanced classification wizard, based on machine learning, vastly reduces classification issues. It is designed and supported by customs experts and digital transformation leaders, and is backed by more than 40 years of experience in logistics to solve challenges in the supply chain. CARGOES Customs provides an intelligence-enabled, unified customs operating model that optimises border management and revenue collection activities. The system empowers customs agencies to facilitate trade, secure global supply chains, and increase compliance. At the same time, it minimises revenue leakage for government agencies. The platform is built to assist global customs organisations in reforming and modernising processes by streamlining digital transformation through the latest technology and tools. The CARGOES Customs platform is based on the belief that with technology as a foundation, any customs organisation can vastly improve its digital capabilities and better integrate with key agencies and other countries, while also satisfying any regional agreements. The CARGOES Customs system is further enhanced by its powerful risk engine which detects revenue leakages. This technology improves visibility and traceability, and is based on WCO best practices, thereby optimising the customs clearance process. As an intelligent risk engine, it helps enforce compliance and promotes seamless collaboration between authorities, government departments and stakeholders. Offering a single window interface, CARGOES Customs is highly configurable and uses a template-based design which means customs organisations can update or roll-out new services at the click of a button. It supports all file formats commonly used in customs, and is WCO, WTO and SAFE framework compliant. Sultan bin Ahmed Sulayem, Group Chairman and Chief Executive Officer of DP World, said, "Trade is a key driver to help economies around the world to recover fairly and sustainably from the economic shock of the pandemic. At DP World, we are doing our part to make trade flow as smoothly and seamlessly as possible, and with CARGOES Customs we really help customs authorities around the world to become dramatically more efficient – now and for the long term. This new digital solution connects customs officials and traders through an easy-to-use interface and a suite of custom-built tools. We will continue to invest in our digital platforms to bring simplicity, transparency and efficiency to global trade – at customs, and beyond." Pradeep Desai, Chief Technology Officer, DP World, concluded, "Demand for digital solutions has never been higher and will only keep growing. We are leveraging technology to create value for our customers and help drive growth. CARGOES Customs by DP World is part of the broader CARGOES software suite of products. DP World created CARGOES to solve pressing challenges caused by supply chain related inefficiencies. It’s a holistic solution powered by technology targeting all aspects of global trade including Finance, ERP, Tracking, Terminal Operating System, Customs software and enabling end-to-end logistics. We are excited to provide Logistics as one of our first CARGOES offerings to customers."

Source: Media Office

The UAE Cabinet has issued Resolution 105/2021 (the decision) setting up rules and mechanisms for requests regarding the payment in instalments, waiver and refund of administrative penalties.

The request for payment in instalments, waiver or refund of administrative penalties should be submitted to a committee (the Committee) formed by decision of the Chairman of the Federal Tax Authority (FTA).

Conditions for submitting requests for payment in instalments or waiver of administrative penalties

Payment in instalments of administrative penalties

Taxpayers may request payment in instalments of unpaid and undisputed administrative penalties of at least AED 50,000.

Waiver of administrative penalties

The Committee may approve the waiver of administrative penalties if the following conditions are met:

• the violation in respect of which the administrative penalties were imposed should not be related to a crime of tax evasion;
• the request must be submitted within the period specified by the Committee; and
• the taxpayer's request should be related to one of the following cases:
  • illness or death of a registered natural person or the owner of a sole proprietorship, when the illness or the death was a direct cause of non-implementation of the tax obligation;
  • existence of precautionary or preventive measures imposed by the government, which directly caused the unfulfilment of the tax obligations;
  • a defect in the FTA's systems, payment systems, or telecommunications services, which directly prevent the taxpayer from the fulfilment of the tax obligations;
  • when the taxpayer pays the tax due through another account registered for tax purposes with the FTA;
  • if a taxpayer is declared insolvent or bankrupt, and the tax amounts due from him is paid prior to the date of the bankruptcy or insolvency declaration, unless the purpose of registering the bankruptcy or insolvency is to evade the payment of such administrative penalties; and
  • any other cases accepted by the Committee.

Procedures for submitting requests for payment in instalments or waiver of administrative penalties

The requests for payment in instalments or waiver of administrative penalties shall be submitted to the FTA through the forms prepared for this purpose. The request must include the following documents and data:

• name of the person, including the email and mailing address;
• tax registration number (if any);
• the amount of administrative penalties and violations related to the request;
• the date of imposing the administrative penalties, subject to the request;
• reasons for applying;
• an undertaking from the person to pay the required payment according to the administrative penalties instalments plan approved by the Committee, if the request is related to the administrative penalties instalments plan;
• an undertaking from the person that he corrected his violation and to not repeat the violation, if the request is related to the waiver of administrative penalties; and
• any other documents or data required by the Committee.

A person may not submit more than one request for payment in instalments or be exempted from the same administrative penalties under study.

The Cabinet decision was issued on 28 December 2021, in accordance with Federal Decree-Law No. 7 of 2017 as amended on tax procedures law. The decision shall enter into force on 1 March 2022.

The UAE Government has launched the United Nations (UN) platform, "Big Data for Sustainable Development", as part of an initiative aimed at meeting the needs of the Middle East and North African (MENA) region.

The UAE is one of four countries selected as a regional headquarters for the platform.

The announcement was made during the 'Mobilising Big Data and Data Science for the Sustainable Development Goals' forum, which kicked off today at Expo 2020 Dubai, in cooperation with the United Nations, and witnessed the participation of Emirati ministers, government and international officials and a large roster of experts and specialists in data science and sustainable development.

Reem bint Ibrahim Al Hashemy, Minister of State for International Cooperation and Chairperson of the National Committee for Sustainable Development Goals, said the UN's decision to make the UAE the MENA headquarters of the platform underscores its stature and will enhance its position as a global hub for technology and big data.

It also highlights the UAE leadership's keenness to achieve the sustainable development goals (SDGs) by employing big data and artificial intelligence (AI) technologies, she added.

Shamma bint Suhail Al Mazrouei, Minister of State for Youth Affairs, said the UAE has supported the youth's growing interest in big data, future technologies and sustainability, adding that the government’s initiatives have encouraged youth participation in the UN Youth Hackathon.

She also affirmed the UAE’s commitment to empower youth and hone their skills and capabilities in big data and AI technologies, noting that the country has placed youth at the forefront of its development strategy.

Sarah bint Yousif Al Amiri, Minister of State for Advanced Technology and Chairwoman of the UAE Space Agency, said the UAE has begun its journey into the next fifty years guided by its leadership’s directives to adopt proactive plans, supporting its priorities in sciences and advanced technologies.

SDGs include supporting comprehensive and sustainable manufacturing and promoting innovation, she noted, adding that the Ministry of Industry and Advanced Technology has adopted a strategy aimed at motivating innovation and adopting advanced industrial tech solutions.

Omar bin Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy, and Teleworking Applications, said that data is the true wealth of the government of the future and the main tool for developing the next-generation government services.

The UAE cooperates with several countries and international organisations to align data protection efforts, by drafting legislation and establishing partnerships to ensure aligning laws issued by countries that produce digital technology and social media platforms, he added.

The UAE seeks to establish a conducive environment for fostering talents in advanced data to achieve SDGs, by focussing on improving the efficiency of AI and big data utilisation across vital sectors.

Liu Zhenmin, Under-Secretary-General for for Economic and Social Affairs at the UN, congratulated the UAE Government for the successful launch of the platform’s regional centre, noting that it could help build the capacities of statistical authorities in the MENA region in utilising big data, thus fast-tracking the achievement of SDGs.

Hanan Mansour, Acting Director of the Federal Centre for Competitiveness and Statistics, said that the centre’s experts collaborated with a UN team to create the ideal infrastructure for the platform, which can meet the needs of the MENA region.

The centre manages 578 national statistical indexes and is connected to over 40 authorities to ensure data security, she added, noting the centre is capable of handling over 100 million units of raw data annually.

Source: WAM

The Federal Tax Authority (FTA) has called on tax registrants to benefit from the Cabinet Decision to extend the grace period to benefit from the re-determination of administrative penalties on violating tax laws until 31st December, 2022, which would make the amount of the total unpaid penalties due until 28th June, 2021 equal to 30 percent of such unpaid penalties, provided the conditions set by the Cabinet Decision are met.

The FTA reaffirmed that the Cabinet Decision provided an opportunity for the business sector to benefit from the reduction of the administrative penalties. The Cabinet Decision is in keeping with the wise leadership’s directives to reduce burdens on business sectors and enhance their abilities to contribute more to the growth of the national economy. The Decision is also a part of the FTA’s goal to provide a legislative environment that encourages a high level of tax compliance.

The FTA explained that according to the Cabinet Decision on Re-Determination of Administrative Penalties imposed for violating tax laws, the tax registrant who was not able to fulfil the conditions to benefit from redetermination before 31st December 2021, may fulfil the conditions before 31st December, 2022. The FTA called tax registrants to fulfil the requirement to pay the full tax payable, and 30 percent of the total unpaid administrative penalties that were imposed before 28th June, 2021.

The Cabinet Decision stated that the FTA will determine the procedures for implementing the provisions related to the re-determination of administrative penalties imposed for violating tax laws. The FTA confirmed that administrative penalties imposed on the tax registrant will be redetermined within a maximum of 30 business days from the dates specified in the Cabinet Decision, providing all conditions are met.

The FTA clarified that tax registrants who had not met the necessary conditions to benefit from the administrative penalties re-determination by 31st December, 2021, can do so by ensuring they meet the conditions by 31st December, 2022. First, the administrative penalty should have been imposed under Cabinet Decision No. 40 of 2017 before 28th June, 2021, and the amount due was not settled in full before that date. Second, the tax registrant has settled all payable tax by 31st December, 2022 (which means that the registrant must not have any tax due at the end of year 2022). And third, the tax registrant has settled 30 percent of total unpaid administrative penalties due until 28th June, 2021, no later than 31st December, 2022.

The FTA continues to review and audit the records of tax registrants who have fulfilled the requirements prescribed in the law to benefit from the re-determination of administrative penalties scheme that was imposed under Cabinet Decision No. 40 of 2017 before 28th June, 2021, to be equal to 30 percent of the total unpaid penalties due until 28th June, 2021.

The FTA explained that the actual values resulting from the re-determination of administrative penalties have already been reflected in the accounts of many eligible tax registrants who, by 31st December 2021, met the conditions specified per Cabinet Decision No. 49 of 2021 on amending some provisions of the Cabinet Decision regarding Administrative Penalties for Violation of Tax Laws in the UAE, which came into effect on 28th June, 2021. For such registrants, the new values after re-determination appeared on the accounts of registrants on the FTA’s e-Services portal; registrants were also informed by emails that the re-determination process had been completed.

The FTA indicated that the review of some tax registrants’ records is still ongoing to identify anyone else eligible to benefit from the re-determination of administrative penalties scheme.

FTA called on tax registrants who received notifications to provide the FTA with supporting data, to submit the required information without delay so that the FTA team may complete the procedures for reviewing such records and implement the re-determination of administrative penalties on the accounts of eligible registrants.

Source: WAM