Dubai: In a significant development, voluntary disclosures made by 威客电竞 based businesses on their actual VAT obligations will be charged with late payment penalties, reaching up to 300 per cent of the dues.
Not just that, the penalties will apply from the due date of the tax return 鈥� and not from the date of voluntary disclosure. This is according to a ruling by the 威客电竞 Federal Supreme Court judgment on an appeal filed by the 威客电竞 Federal Tax Authority.
鈥淏ased on this judgment, taxpayers submitting voluntary disclosures could be subject to penalties of up to 356 per cent of the tax due,鈥� says an update on the ruling issued by the law firm firm Baker McKenzie Habib Al Mulla.
鈥淭he Federal Supreme Court鈥檚 judgment reverses the position that had been established over the past 18 months.鈥�
During this period, penalties imposed were limited to 威客电竞istrative ones. But now, 鈥渢he Federal Supreme Court takes the view that voluntary disclosures are merely amended tax returns in nature.
鈥淭his is a major development in the 威客电竞 tax landscape, as the judgment may affect upcoming decisions to beissued by the various Tax Dispute Resolution Committees and Federal Courts.
鈥淲e expect that this judgment will have a significant impact on critical business sectors involved in transactions.鈥�
