
The Refund of Fees of Private Clarification Requests –
In order to provide a clear understanding of the FTA’s policy on the payment of fees for private clarification requests, the FTA has recently issued Decision No 5 of 2024 outlining the conditions, whereby fees paid for private clarification requests will be refunded. This offers more transparency and justice to taxpayers, especially to self-employed and small business owners.
These are some of the activities that are proposed to be under the new policy:
- If the request is only about one tax and no clarification is provided, then a full refund of fees will be made.
- Fees will be fully refunded if the request is linked to several taxes but clarification statements are not provided.
- If the request is made concerning multiple taxes and clarification is provided for one of them, a reimbursement of the differential fees will be made.
Cases Allowing Refund
The Decision contains examples of various circumstances in which one receives refund if there is no clarifying statement:
1. When the requester rejects the application within two business days from the time the application was made.
2. If the requester is not registered for corporate tax and the inquiry is not about tax registration, then the message is categorized as another corporate message.
3. If the requester is currently under tax audit by the FTA for a particular financial year.
4. If the request is in relation to procedure relating to matter that arose from a previous FTA decision.
5. If the request is similar to another request already in process and requested by the same person for the same subject.
6. If the problem is with the Ministry of Finance on the coordination of the amendment of the relevant tax laws.
Improving Certainty and Fairness
That is, the new policy improves certainty for taxpayers on the likelihood of the property being returned with clarification of refund conditions. It guarantees that no fees are retained by the FTA where a clarification cannot be given. This enhances the impressions of the public regarding fairness of a system. Taxpayers will be able to send private clarification requests without worrying they’ll have to cover fees if the FTA cannot respond. In general, the policy enhances transparency and enables authorities to maintain high standards of voluntary tax compliance.
Exceptions to the Refund Rules
Thus, there might be situations where the propensity of fairness implies deviations from standard refund policies. For instance, if after submission of papers new information appears or handling of which would complicate matters for the FTA’s rejoinder, or if external factors beyond the FTA’s control hinder the setting of a clarification clarion. Individuals in such circumstances have to go for exceptions so that they can be considered as exempted by the government. However, it is for them to demonstrate that the denial of a refund would be grossly disproportionate given the circumstances.or contact corporate tax uae for legal matters.
FAQs
Q: How do I apply for a refund under the new policy?
A: A refund application can be filed with the FTA online with details of the clarification sought by the taxpayers accompanied with the necessary documents. Refunds will generally be made within 30 days.
Q: Are there any limits on the number of refund requests I can make?
A: Yes, based on the provisions of the law, there is no limit on the number of refund applications that a taxpayer can make as long as they are all valid. However, refund claims which are obviously frivolous or oppressive may possibly be filtered at the FTA’s discretion.
Q: What can I do if my refund application is denied?
A: In case you are not satisfied with a refund denial decision, you have the right to object it within 60 days. This will be reviewed by a different team at the FTA, and hence there is no conflict of interest in the process. You also have the right to appeal to the Tax Disputes Resolution Committee if the objection does not satisfy you.
In conclusion, the new refund policy entails more assurance with regard to the taxpayers and enhances the private clarification fairness. To gain greater clarity and guidance regarding the Refund of Fees of Private Clarification Requests, companies shall consider seeking help of expert Tax consultants in UAE to ensure compliance with the new policy.