Voluntary disclosures by UAE businesses on VAT or excise tax will face heavy penalties

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Dubai- October 20, 2020:

There is a major development in the UAE tax litigation landscape.

In a very significant twist, the voluntary disclosures made by UAE based businesses on their actual VAT obligations will now be charged with late payment penalties (up to 300% of the tax due). Late payment penalties would apply from the due date of the tax return and not from the date of the voluntary disclosure.

This is according to a ruling by the UAE Federal Supreme Court judgment on an appeal filed by the UAE Federal Tax Authority.

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