Appeal for ESR Penalty Imposed In UAE

When you are aware of the reasons for attracting ESR Penalty, you should next be equipped with the steps to resolve it!

What if

1. The licensee or the exempted licensee did not commit the violation attributed to it?
2. The administrative penalty imposed is not proportionate to the violation?
3. The administrative penalty imposed exceeds the limited prescribed?

In such cases, the licensee or an exempted licensee can submit an appeal request to the Federal Tax Authority (The National Assessing Authority).

Is the whole system user-friendly? – Absolutely Yes. A user can easily follow the simple steps to file an appeal against the penalty imposed.

STEPS TO FILE AN APPEAL REQUEST

Step 1: Log in to the Ministry of Finance Portal. (You need to have a registered MoF Corporate account, or create a new account to access the Economic Substance Filing Portal).

Note: An appeal must be submitted for each administrative penalty separately.

Step 2: Click “File Appeal” to submit an appeal request.

Note: The system shows the deadline for submitting an appeal request and payment of the penalty.

(i) The deadline for submitting an appeal is (40) forty working days from the date on which such administrative penalty is levied.

(ii)The final deadline for paying the penalty is (40) forty working days from the date on which such administrative penalty is levied.

The calculation of the final deadline for paying the penalty is stopped upon submitting the appeal request, and it will be resumed if the appeal request is rejected or withdrawn.

Step 3: On the Appeal request page, the applicant must add a simplified explanation of the reason for submitting the appeal request and attach the supporting documents.

Step 4: Press “Next” and then send the request after reviewing the explanation and the attached documents by pressing “Send”.

Note: After sending the request, you will receive the message that your submission has been received.

WHEN TO EXPECT THE DECISION FROM THE NATIONAL ASSESSING AUTHORITY?

The National Assessing Authority makes a decision Within (40) Forty working days from the date of meeting all requirements. It informs the applicant of the decision within (5) working days from the date of issuance of the decision.

REQUEST FOR MORE INFORMATION / DOCUMENTATION BY THE ASSESSING AUTHORITY

The National Assessing Authority may request more information/documentation from Licensee and the applicant must provide the required information/documentation within (5) five working days from the date of such request.

Note: The National Assessing Authority has the right to reject appeals in case the information/documentation is not provided.

THE EXTENDED DATE OF DECISION

When providing the new supporting documents that were requested, the National Assessing Authority will review the appeal request and issue a decision within (40) forty working days from the date of receiving the required documents and the applicant will be notified within (5) five working days from the issuance of the decision.

SOME ADDITIONAL NOTES FOR YOUR INFORMATION

1. Up to 10 documents supporting the appeal can be submitted. However, must not be more than (40) Forty (MB) in total size.
2. The explanation provided in the portal would be best if it is short and accurate.
3. You can always follow up by sending an email to ftaesr@tax.gov.ae.
4. There is a Case ID provided for each appeal. You can find the appeal Case ID when you click on the “View Summary” on the Licensee Dashboard.