The Federal Supreme Council confirms the mandatory penalty for late payment of the tax

Federal Supreme Council overturned a ruling rejecting a lawsuit filed by a government agency.

Emirates today

The Federal Supreme Court affirmed that the failure of the taxable person to pay it on time necessitates inflicting the late fine, whether it is contained in the declaration or the voluntary declaration, pointing out that the voluntary declaration is in fact an amendment to the basic declaration, and its ruling on it is a branch of the original.

And it overturned a ruling that rejected a lawsuit filed by a government agency against a decision that canceled the calculation of late fines for paying the tax owed on a bank, as the agency demanded that it pay fines of seven million 863 thousand and 581 dirhams.

The court affirmed that the bank is obligated to pay the delay fine, considering that paying the penalty for the voluntary declaration does not substitute for the payment of the late fine for the differences in the taxes due in this declaration.

The Federal Supreme Court clarified in the merits that the allegation that the legislator did not stipulate the payment of a fine for delaying the payment of the tax differences included in the voluntary declaration was a mistake in understanding the nature of the voluntary declaration, which is in fact an amendment to the basic declaration, and then its judgment on it is withdrawn considering the voluntary declaration as a branch of the original. The basic declaration, especially since the declaration and the voluntary declaration are nothing but merely executive procedures for collecting the payable tax, whose origin is not a voluntary declaration or declaration, but rather the origin of the law that defined it according to peremptory rules.

She indicated that the purpose of the voluntary declaration is to correct the mistake of the taxable person, whether in the declaration itself or the evaluation based on his declaration, since in all cases the error compelled by the voluntary declaration is attributable to the taxable person, who must investigate accuracy in providing information and data specified for the purposes of the tax, depending on whether That if the taxable person had performed the accuracy of the information shown in his declaration, he would be rich in any other errors that were redressed by the voluntary declaration, whether these errors were in the declaration or evaluation, which is the same that prompted the legislator to impose an independent fine, as defined by Item 11 of the table No. (1) attached to the Cabinet Resolution, on the taxable person if he submits the voluntary declaration in all cases.

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