What Is Meant by the Tax Dispute Resolution Committee?

Dubai is known for its tax-friendly rules and regimes, which attract businesses from all over the globe. The businesses are expected to stay compliant with these regulations and to follow all the applicable rules. There can be some circumstances where the businesses or individuals will have disagreements regarding any tax procedures carried out by FTA. For such instances, the UAE has deployed the Tax Dispute Resolution Committee in order to resolve any disputes, which provides a transparent picture of the processes.

What is TDRC?

The Tax Disputes Resolution Committee is the body incorporated to solve any kind of issues and disputes between the taxpayers in the UAE and the FTA. It focuses on solving the misunderstanding or any kind of dispute with fair and efficient procedures, providing a transparent picture to the taxpayer. Each TDRC includes 2 members who are tax experts (registered) and also a member of judicial authority in order to chair the committee.

How Does TDRC Resolve the Disputes?

The TDRC has a significant role in ensuring that the tax matters and procedures are carried out effectively and transparently. It has the power to:

• Deal with any kind of objections and disagreements against any decision made by the FTA based on the reconsideration requests
• The TDRC will come into the picture and will intervene if the FTA fails to provide an adequate response to any kind of reconsideration requests.

If the decision made by the FTA based on the reconsideration request is not satisfactory, then the taxpayer can raise the objections to the decision made within the 40 days starting from the day when the FTA has notified its decision.

There are many other instances where the TDRC might not consider or accept the objection; these include the following:

• If the reconsideration request was not filed prior with the FTA
• If the tax amount owed by the taxpayer has not been fully remitted
• If the timeline of submitting the objection, which is 40 days, has been missed.

Process of Resolving the Disputes?

TDRC, when it receives an objection, will follow a stringent process and time schedule to resolve the dispute:

• Within the first 20 days of the objection being received, the TDRC will review the dispute and will issue a decision.
• Within the 5 days of issuance of such a decision, the taxpayer and the FTA will be notified of the same.
• If the amount of tax or related penalties is AED 100,000 or less, then that decision would be considered as final, and no other process of review would be conducted.
• The taxpayers cannot approach any court of law until and unless they have raised their disputes to TDRC.

The UAE has one of the best tax issue redressal institutions, which provides clear-cut insights into how the decision has been taken. The tax disputes of the taxpayer and the FTA can be resolved within a short duration, thereby facilitating the tax registrants to make their internal decisions swiftly. The transparent process of addressing and solving the tax disputes by the TDRC also enables and guides the entities with the certain procedures that are to be performed in order to solve the disputes. Furthermore, the framework also allows the entities to appeal in court if they are still not satisfied with the decisions, hence providing the taxpayers multiple options to resolve the disputes or to raise objections. This shows how the UAE is being stringent as well as friendly with the taxpayers, which provides the best environment for the businesses to flourish.

Why Choose Our Team for UAE Tax-Related Disputes?

A professional’s assistance is always a good choice while handling the tax-related matters. The FTA and the TDRC expect the taxable entities to be aware of the applicable and implemented tax rules and regulations. Also, in order to file an appropriate and justifiable reconsideration application, the knowledge of tax laws is a must. Hence, approaching the professional tax consultants in UAE such as CDA can enable you to apply for the reconsiderations and raise the objections confidently, as our tax team would back you and would assist you regarding the tax regulations and any other tax-related matters.

Our team is equipped with deep knowledge of all the tax laws prevailing in the UAE, we have a presence in all significant business industries, and we are known for providing custom-tailored services to our clients. 

To know more about our services, connect with our team today.

Mitesh Maithia

Tax Manager

Mitesh is a Tax Professional with expertise in direct, indirect, and international taxation, including transfer pricing, since 2018. Passionate about making complex tax matters simple, he shares insights to help businesses stay compliant and forward-looking.