Cabinet Decision No. (51) of 2021
Amending certain provisions of Cabinet Decision No. (36) of 2017 on the Executive Regulation
of Federal Law No. (7) of 2017 on Tax Procedures
The Cabinet,
Having reviewed the Constitution,
And Federal Decree-Law No. (13) of 2016 on the establishment of the Federal Tax Authority, and its amendments,
And Federal Law No. (7) of 2017 on Tax Procedures,
And Cabinet Decision No. (36) of 2017 on the Executive Regulation of Federal Law No. (7) of 2017 on Tax Procedures,
And based on the proposal of the Minister of Finance and the approval of the Cabinet,
Has decided:
Article One
The text of Article (26) of Cabinet Decision No. (36) of 2017 on the Executive Regulation of Federal Law No. (7) of 2017 on Tax Procedures shall be replaced with the following text:
1. The Authority may reduce or waive administrative penalties for any person or category proven to have violated the provisions of the Law or the Tax Law, provided that the following conditions are met:
a. An excuse acceptable to the Authority.
b. Availability of evidence justifying the excuse and the commission of the violation, which led to the imposition of administrative penalties.
2. Without prejudice to the provisions of Clause (1) of this Article, any person or category proven to have violated the provisions of the Law or the Tax Law may submit a request to the Authority to reduce or waive the penalties it has imposed, in accordance with the following controls:
a. An excuse acceptable to the Authority.
b. Availability of evidence justifying the excuse and the commission of the violation, which led to the imposition of administrative penalties.
c. Notifying the Authority of the request for reduction or waiver according to the mechanism it specifies, within (40) working days from the cessation of the acceptable excuse.
d. The person must prove that they have corrected their violation.
e. Submitting a waiver or reduction request to the Authority using the form it specifies.
3. The excuse shall not be considered acceptable if it is proven that the person's violation was intentional.
4. For the purposes of implementing the provision of paragraph (a) of Clause (1) and paragraph (a) of Clause (2) of this Article, the acceptance of the excuse shall be based on a decision by a tripartite committee formed by a decision of the Director-General, and this committee shall be responsible for studying, accepting, or rejecting the excuse.
5. The Authority shall issue its decision to reduce or waive administrative penalties within (40) working days from the date of receiving the request, if any, and the applicant shall be notified of that decision within (10) working days from the date of its issuance.
Article Two
Any provision that violates or contradicts the provisions of this Decision shall be repealed.
Article Three
This Decision shall be published in the Official Gazette and shall come into force from the date of its issuance.
Mohammed bin Rashid Al Maktoum
Prime Minister
Issued by us:
On: 16 / Ramadan / 1442 H
Corresponding to: 28 / April / 2021 G