The Federal Tax Authority (FTA) has called on registered taxpayers to benefit from the facility to re-determine administrative penalties on tax violations to be 30 per cent of the total outstanding amount of the penalties that were not paid before June 28, 2021.
The FTA stressed that the facility has a set deadline and that taxpayers who are eligible to benefit from the decision must complete all related procedures through the EmaraTax portal before December 31, 2022.
In a statement issued on Thursday, the authority explained that after December 31, tax registrants who have outstanding administrative penalties from before June 28, 2021 will not be eligible to avail the re-determination facility and will be required to pay their penalties in total.
The decision outlined three conditions that need to be met in order to benefit from the re-determination. First, the administrative penalty must be imposed under Cabinet Decision No. (40) of 2017 before June 28, 2021 and remain outstanding. Second, the tax registrant needs to have settled all due payable tax by December 31, 2022 with no remaining outstanding taxes by end of 2022. Third, the tax registrant must have paid 30 per cent of the total unsettled administrative penalties imposed before June 28, 2021 no later than December 31, 2022.
Registrants can visit their amnesty dashboard on their EmaraTax accounts and follow the process to make the payment. Upon going to the payments screen on EmaraTax, registrants may select Administrative Penalties unpaid before the date of June 28, 2021. Registrants may either pay 30 per cent for each of the administrative penalty line item or select such line items (either full or partial) that equate to 30 per cent of such unpaid administrative penalties.