Administrative Penalties Assessment – Article 24 – Federal Tax Procedures Law

Article 24 – Administrative Penalties Assessment

1. The Authority shall issue an Administrative Penalties Assessment for the Person and notify him of the Administrative Penalties Assessment within (5) five Business Days for any of the following violations:

   1. The Person conducting Business or having a Tax obligation under this Decree-Law or the Tax Law failing to keep the required records and other information specified in this Decree-Law and the Tax Law.
   2. The Person conducting Business or having a Tax obligation under this Decree-Law or the Tax Law failing to submit the data, records, and documents related to Tax in Arabic to the Authority when requested.
   3. The Taxable Person failing to submit a Tax Registration application within the timeframe specified in the Tax Law.
   4. The Registrant failing to submit a deregistration application within the timeframe specified in the Tax Law.
   5. The Registrant failing to inform the Authority of any case that requires the amendment of the information pertaining to his Tax record kept by the Authority.
   6. The Legal Representative failing to inform the Authority of his appointment within the specified timeframe, in which case the penalties will be due from the Legal Representative’s own funds.
   7. The Legal Representative failing to file a Tax Return within the specified timeframe, in which case the penalties will be due from the Legal Representative’s own funds.
   8. The Registrant failing to submit the Tax Return within the timeframe specified in the Tax Law.
   9. The Taxable Person failing to settle the Payable Tax within the timeframe specified in the Tax Law.
   10. The Registrant submitting an incorrect Tax Return.
   11. The Taxable Person or the Taxpayer submits a Voluntary Disclosure in relation to errors in the Tax Return or the Tax Assessment or Refund Application pursuant to Clauses 1 and 2 of Article 10 of this Decree-Law.
   12. The Taxable Person or the Taxpayer fails to submit a Voluntary Disclosure in relation to errors in the Tax Return or the Tax Assessment or Refund Application pursuant to Clauses 1 and 2 of Article 10 of this Decree-Law before being notified that he will be subject to a Tax Audit.
   13. The Person subject to Tax Audit, his Tax Agent, or Legal Representative failing to offer facilitation to the Tax Auditor in violation of the provisions of Article 20 of this Decree-Law, in which case the penalties will be due from the Person’s, Tax Agent’s, or Legal Representative’s own funds as applicable.
   14. The Registrant failing to account for Tax on behalf of another Person when the registered Taxable Person is obligated to do so under the Tax Law.
   15. Any other violation specified under the Tax Law or a Cabinet decision.

2. The Executive Regulation shall specify the information and data that must be included in the Administrative Penalties Assessment.

3. The Cabinet shall issue a decision that specifies the Administrative Penalties for each of the violations listed in Clause 1 of this Article in respect of this Decree-Law, the Tax Law, or any other violation specified under a Cabinet decision.

4. The amount of any Administrative Penalty shall not exceed two times the amount of Tax in respect of which the Administrative Penalties Assessment was issued.

5. The imposition of any Administrative Penalty pursuant to the provisions of this Decree-Law or any other law shall not exempt any Person from the responsibility of settling the Payable Tax in accordance with the provisions of this Decree-Law or the Tax Law.