Voluntary disclosure primarily deals with positions where the Taxpayer unknowingly does a mistake on their VAT return. It is carried out by many companies but the intensity and character changes from place to place depending upon the geographical conditions, economic condition, the status of industries & many more. The intensity of Voluntary Disclosure also gets affected by corporate governance structure as well as ownership structure. It is also considered as an essential part of financial reporting research.
Reconsideration form primarily deals with circumstances where a decision is made by FTA regarding a penalty imposed on an individual and the individual in turn voices for a reconsideration of FTA’s judgment.
Voluntary Disclosure is mandatory to be formed in these following cases gleaned below:-
- When a previously filed tax return is found out to be erroneous and is found that the tax to be played is less than the tax to be been paid which is a case of underpayment in the amount which crosses 10,000/- AED.
- When a filed Tax Return or the Tax Assessment is not true i.e. the amount of tax to be paid is less than the amount of tax that is required that is a case of underpayment of tax which is not more than 10,000/- AED. Also, there is no possibility of a tax return by which this falsity can be corrected.
- A case where the field tax return is not correct, which may, in turn, result in a calculation of a refund in which the taxpayer is designated in actuality higher than the legitimate amount.
- This must be formulated within 20 business days after identifying the VAT error.
- To submit 211 VAT Voluntary disclosure forms go to VAT201 VAT returns in the tab section of the e-services & click on Submit Voluntary Disclosure Form.
- There are no fines penalties.
There are different levels of submitting a Reconsideration Form. Those may be gleaned below:-
- The Reconsideration Form is to be submitted at FTA’s portal. It is to be kept in mind that this form and all the required documents have to be submitted in Arabic only. The FTA will not accept any forms which are written in any other language.
- The next step is the Tax Dispute Resolution Committee. This is the step when an individual is not at all satisfied with FTA’s decision. The individual has the liberty to take the case to the court which will be uncontested. Within 20 days after the decision passed by the Tax Dispute Resolution Committee, the individual is entitled to do these activities.
- Federal Court Litigation is the last step. If the individual is not satisfied with the decision, then he/she has the liberty to take the case to a court where the judgment will be uncontested. But he/she has only 20 days after the decision passed by the Tax Dispute Resolution Committee.
- This has to be submitted in 20 business days after FTA’s decision.
- If any individual is interested in a reconsideration form, that individual has to go to the e-form section and click on the Reconsideration form.
- There are no fines penalties.
About GCC Filings
GCC Filings is a professional accountancy firm in the UAE assisting clients in the matters of filing of returns, keeping the books of accounts and records of the transaction, VAT-related matters and to represent the clients during the hearings of taxation related and VAT matters.