The Federal Tax Authority has identified six conditions that will prevent a taxable person from receiving any remaining amounts despite filing a refund claim, if they are subject to a tax audit. The Authority clarified in a new decision obtained by 'Emirates Today', that after reviewing the Constitution and all related laws, and with the approval of the Authority's Board of Directors, the Chairman of the Board of Directors of the Federal Tax Authority has decided on the conditions to prevent the refund of remaining amounts related to the refund claim, if the person is subject to a tax audit. Accordingly, the Authority is entitled to refuse to refund any remaining amount if any of the following conditions are met: there is sufficient evidence to support the likelihood of significant tax liabilities arising for the person, based on information available through tax audit work; there are sufficient reasons to believe that the person is involved in tax evasion; there are sufficient reasons to believe that the refund claim is related to goods suspected of being part of a tax evasion scheme within the supply chain. The conditions also include: the taxable person having late tax returns for any type of tax; the person failing to provide the information requested by the Authority regarding the tax audit within the specified timeframe; and finally, the person's failure to cooperate with the Authority in any way regarding their obligations during the tax audit. According to the decision, it will be published in the Official Gazette and will be effective as of January 1, 2026.
