Redetermination of Administrative Penalties
What does the new decision say?
Cabinet Decision No. 49 of 2021 gives the FTA ability to redetermine the amounts of unsettled payable administrative penalties, which were imposed on registrants on the basis of the penalty rules listed in Cabinet Decision No. 40 of 2017.
As per the decision, administrative penalties imposed on the tax registrants prior to effective date of new amendment i.e., 28th June 2021 can be reduced by 70 % provided all the conditions are met.
What are the conditions to be met by the registrants?
- Any of the administrative penalties have been imposed on the person before 28 th June 2021.
- The person has not settled all the administrative penalties imposed on it as per Cabinet Decision No. 40 of 2017 in full before 28 June 2021.
- The taxable person has settled all payable tax by 31st December 2021.There should not be any payable tax outstanding as on 31st December 2021 whether such tax was payable before or after 28 June 2021.
- Out of the unsettled administrative penalty due ,30% of it shall be paid before 31 st December 2021.
What is the benefit if all the conditions are met?
If the above conditions are met, the FTA will, at the end of 2021, redetermine that the administrative penalties payable and not settled by 28 June 2021 equal 30% of that unsettled part. Hence, the Person shall not berequired to pay the remaining part (i.e., 70%)
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