CD 23/2018 — Tax Disputes Resolution Committees

Factual summary

Forms three permanent Tax Disputes Resolution Committees (Abu Dhabi, Dubai and Sharjah) under the Ministry of Justice, each chaired by a judicial member with two tax experts, and sets their territorial competence, working rules and procedure. An objection may be filed only after a reconsideration request to the FTA and payment of the disputed tax and penalties; the committee decides within 20 business days, its decision is final up to AED 100,000, and larger disputes can go to the competent court within 20 business days.

What it means in practice Professional insight

Who: taxpayers and tax agents contesting FTA reconsideration decisions. What to check: that the reconsideration step was taken and the disputed amounts paid, the filing route and deadlines, the AED 100,000 finality threshold, and whether current law has changed the procedure.

Key provisions

• Art. 2 Three permanent Tax Disputes Resolution Committees are formed, for the Emirates of Abu Dhabi, Dubai and Sharjah; each is chaired by a member of the judicial authority with two members registered in the roll of tax experts, appointed by decision of the Minister of Justice in coordination with the Minister of Finance, with reserve members; membership lasts one year, renewable for similar periods not exceeding 3 years.
• Art. 3(2)–(4) Territorial competence follows the objector's address in its tax registration file with the Authority; the Sharjah committee covers addresses in Sharjah, Ras Al Khaimah, Ajman, Fujairah and Umm Al Quwain, and the Abu Dhabi committee hears objections of foreign companies whose registered address is outside the State.
• Art. 6 The committees decide objections against the Authority's decisions on reconsideration requests and requests submitted to the Authority on which it took no decision under Federal Law No. 7 of 2017; an objection already decided by one committee may not be brought before another.
• Art. 7 The objection is filed with the competent department (Tax Disputes Resolution Committees Department at the Ministry of Justice), or through the Authority's electronic objections system, on the prescribed form with the applicant's details, a summary of the request, supporting documents and electronic notification addresses; the department refers it to the competent committee within two business days.
• Art. 8 The committee decides within twenty business days of receiving the objection, extendable by up to 20 business days for reasonable cause, may hold hearings with the objector or its legal representative or tax agent, and no tax dispute case is accepted before the competent court unless first brought before the committee.
• Art. 9 The committee rejects an objection that was not preceded by a reconsideration request to the Authority, or where the disputed tax and administrative penalties have not been paid.
• Arts. 10–11 A committee decision is final where the tax due and related administrative penalties total not more than AED 100,000 and is then an enforcement instrument; above AED 100,000 it becomes enforceable if not challenged before the competent court within 20 business days; the Authority and the objector may challenge a decision before the competent court within 20 business days from notification.