Economic Substance Regulations For Administrative Penalties

The Federal Tax Authority ("FTA") has issued a user guide to assist companies in submitting appeal request related to penalty imposed under Economic Substance Regulations ("ESR").

GROUND FOR APPEAL

Companies may appeal to a decision by the FTA to impose an administrative penalty on the following grounds:

• It did not commit the violation. 
• The administrative penalty imposed is not proportionate to the violation.
• The administrative penalty imposed exceeds the limits under the ESR laws.

PROCESS

• Imposition of penalty by the FTA
• Submission of appeal on MOF portal:
  • Reason for appeal;
  • Supporting documents

• Providing additional supporting documents if required by the FTA 
• Review of appeal request by the FTA
• Issue of final decision by the FTA

TIMELINES

Submit for Appeal

• 40 working days from the imposed date of the fine

Submit additional Document Request by FTA

• 5 Working days from the date of requesting documents

Issue a Decision of the appeal

• 40 working days from the date of meeting all requirement

Inform Licensee of the decision

• 5 working days from the date of issuance of the decision

Final period to pay the fine

• 40 working days from date administrative penalty is levied

HOW CAN CROWE HELP?

• Assistance in filling the appeal request
• Assistance in collating the supporting documents
• Follow-up with the FTA