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Corporate Tax Advisory Dubai
Corporate tax advisory Dubai is crucial for understanding the reconciliation process for tax evasion crimes. This new reconciliation process allows individuals who have committed tax evasion to avoid criminal prosecution and penalties. However, the amount required for reconciliation may be significant, and acceptance of the application is not guaranteed.
Individuals guilty of specific tax crimes outlined in Article 25(4) of the Decree-Law must pay AED 50,000 before the Federal Tax Authority (FTA) considers their reconciliation application. Reconciliation is only possible if the individual agrees to pay the full tax amount and administrative penalties owed to the FTA.
If the FTA approves the reconciliation application, it will issue a record that serves as proof of the agreement. This document must be signed by both the FTA and the applicant. A copy of the record is provided to the individual once the full amount owed is paid.
The record includes the following details:
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Information about the accused or convicted person.
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A description of the charges, including their date, place, and applicable law articles.
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The tax amount and administrative penalties payable.
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The percentage and value of any additional reconciliation consideration.
Tax Planning Services Abu Dhabi
Tax planning services Abu Dhabi can help individuals navigate the reconciliation process for tax evasion. By voluntarily disclosing tax evasion and entering into a reconciliation agreement with the FTA, individuals can avoid criminal prosecution and reduce penalties.
Articles 23 and 24 of Federal Law No. 8 of 2017 on Tax Procedures outline the reconciliation process. The FTA has the authority to approve or reject applications. If approved, the FTA issues a record of reconciliation, which both parties must sign.
The amount required to settle a tax evasion case varies based on the stage of the case, the crime’s nature, and the evaded tax amount. In some cases, an additional fixed amount must be paid.